FR Stock Analysis: Valeo | PA
Auto Parts | PA, France | Market Cap: 3.394m EUR | 12M Return: 44.9% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 11.2M
Warnings
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Valeo SE is a French-headquartered automotive technology company founded in 1923 that designs, manufactures, and sells components and systems to vehicle manufacturers across Europe, Africa, North America, South America, and Asia. It operates as a Tier 1 supplier organized into three reporting segments: Power (thermal management systems, including EV battery cooling, heat pumps, and air quality products), Brain (driver assistance hardware and software such as sensors, cameras, lidar, and connectivity tools), and Light (lighting and wiper systems). The company also provides aftermarket spares and services.
Valeos product portfolio is heavily oriented toward two structural industry trends: vehicle electrification and advanced driver assistance systems (ADAS). The Power segments emphasis on EV-specific thermal management (battery coolers, heat pumps, electric compressors) reflects rising content per vehicle as automakers shift away from internal combustion, while the Brain segments sensors and lidar target the automotive industrys gradual transition toward higher levels of vehicle automation.
As a mid-cap stock listed in Paris and classified within the GICS Consumer Discretionary sector, Valeo generates most of its revenue from original equipment manufacturer (OEM) contracts, which ties its earnings cycle closely to global light vehicle production volumes.
- EV thermal management orders accelerate as automakers expand battery capacity
- ADAS revenue grows on LiDAR adoption and EU safety mandates
- European auto production weakness pressures margins and segment revenue
| Net Income: 201.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA -0.63 > 1.0 |
| NWC/Revenue: -6.62% < 20% (prev -12.77%; Δ 6.15% < -1%) |
| CFO/TA 0.10 > 3% & CFO 2.07b > Net Income 201.0m |
| Net Debt (4.00b) to EBITDA (3.02b): 1.33 < 3 |
| Current Ratio: 0.86 > 1.5 & < 3 |
| Outstanding Shares: last quarter (245.6m) vs 12m ago -0.91% < -2% |
| Gross Margin: 17.91% > 18% (prev 15.46%; Δ 2.45% > 0.5%) |
| Asset Turnover: 98.36% > 50% (prev 76.37%; Δ 22.00% > 0%) |
| Interest Coverage Ratio: 3.07 > 6 (EBIT TTM 927.0m / Interest Expense TTM 302.0m) |
| A: -0.07 (Total Current Assets 8.15b - Total Current Liabilities 9.52b) / Total Assets 20.3b |
| B: 0.10 (Retained Earnings 2.11b / Total Assets 20.3b) |
| C: 0.04 (EBIT TTM 927.0m / Avg Total Assets 21.0b) |
| D: 0.21 (Book Value of Equity 3.32b / Total Liabilities 16.2b) |
| Altman-Z'' = 0.41 = B |
| DSRI: 0.70 (Receivables 2.98b/3.42b, Revenue 20.6b/16.5b) |
| GMI: 0.86 (GM 15.46% / 17.91%) |
| AQI: 1.04 (AQ_t 0.37 / AQ_t-1 0.35) |
| SGI: 1.25 (Revenue 20.6b / 16.5b) |
| TATA: -0.09 (NI 201.0m - CFO 2.07b) / TA 20.3b) |
| Beneish M = -3.21 (Cap -4..+1) = AA |
As of July 28, 2026, the stock is trading at EUR 13.79 with a total of 942,797 shares traded. Over the past week, the price has changed by +8.11%, over one month by +11.71%, over three months by +32.96% and over the past year by +44.93%.
Current recommended Stop Loss: 13.00 (which is 5.7% or 1.4 ATR below the current price).
Valeo has no consensus analysts rating.
P/E Trailing = 17.3519
P/E Forward = 3.4305
P/S = 0.1646
P/B = 0.968
P/EG = 0.1795
Revenue TTM = 20.6b EUR
EBIT TTM = 927.0m EUR
EBITDA TTM = 3.02b EUR
Long Term Debt = 5.43b EUR (from longTermDebt, last quarter)
Short Term Debt = 1.01b EUR (from shortTermDebt, last quarter)
Debt = 6.57b EUR (from shortLongTermDebtTotal, last quarter) + Leases 132.0m
Net Debt = 4.00b EUR (calculated: Debt 6.57b - CCE 2.57b)
Enterprise Value = 7.40b EUR (3.39b + Debt 6.57b - CCE 2.57b)
Interest Coverage Ratio = 3.07 (Ebit TTM 927.0m / Interest Expense TTM 302.0m)
EV/FCF = 5.16x (Enterprise Value 7.40b / FCF TTM 1.43b)
FCF Yield = 19.37% (FCF TTM 1.43b / Enterprise Value 7.40b)
FCF Margin = 6.95% (FCF TTM 1.43b / Revenue TTM 20.6b)
Net Margin = 0.97% (Net Income TTM 201.0m / Revenue TTM 20.6b)
Gross Margin = 17.91% ((Revenue TTM 20.6b - Cost of Revenue TTM 16.9b) / Revenue TTM)
Gross Margin QoQ = 20.69% (prev 15.10%)
Tobins Q-Ratio = 0.37 (Enterprise Value 7.40b / Total Assets 20.3b)
Interest Expense / Debt = 4.60% (Interest Expense 302.0m / Debt 6.57b)
Taxrate = 40.97% (177.0m / 432.0m)
NOPAT = 547.2m (EBIT 927.0m * (1 - 40.97%))
Current Ratio = 0.86 (Total Current Assets 8.15b / Total Current Liabilities 9.52b)
Debt / Equity = 1.98 (Debt 6.57b / totalStockholderEquity, last quarter 3.32b)
Debt / EBITDA = 1.33 (Net Debt 4.00b / EBITDA 3.02b)
Debt / FCF = 2.79 (Net Debt 4.00b / FCF TTM 1.43b)
Total Stockholder Equity = 3.46b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.96% (Net Income 201.0m / Total Assets 20.3b)
RoE = 5.80% (Net Income TTM 201.0m / Total Stockholder Equity 3.46b)
RoCE = 10.42% (EBIT 927.0m / Capital Employed (Equity 3.46b + L.T.Debt 5.43b))
RoIC = 5.10% (NOPAT 547.2m / Invested Capital 10.7b)
WACC = 4.99% (E(3.39b)/V(9.97b) * Re(9.40%) + D(6.57b)/V(9.97b) * Rd(4.60%) * (1-Tc(0.41)))
Discount Rate = 9.40% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -14.30 | Cagr: -0.03%
[DCF] Terminal Value 73.26% ; FCFF base≈1.53b ; Y1≈1.35b ; Y5≈1.11b
[DCF] Fair Price = 57.10 (EV 17.8b - Net Debt 4.00b = Equity 13.8b / Shares 241.5m; r=8.35% [WACC [floored]]; 5y FCF grow -14.09% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.0 | # QB: 0
Revenue Correlation: 62.47 | Revenue CAGR: 7.22% | SUE: 0.85 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.30 | Chg30d=-3.74% | Revisions=-25% | Analysts=1
EPS next Quarter (2026-09-30): EPS=0.45 | Chg30d=-3.75% | Revisions=-25% | Analysts=1
EPS current Year (2026-12-31): EPS=1.62 | Chg30d=-0.41% | Revisions=-40% | GrowthEPS=+58.0% | GrowthRev=-2.3%
EPS next Year (2027-12-31): EPS=2.19 | Chg30d=+0.08% | Revisions=-62% | GrowthEPS=+35.5% | GrowthRev=+3.3%
[Analyst] Revisions Ratio: -75% (up=0, down=9)