Vallourec SA (VK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Vallourec SA

Trilogiq SA

Dolfines SA

Why is Vallourec SA ?

High Management Efficiency with a high ROCE of 30.37%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 97.94

The company has declared negative results in Dec'2024 after 4 consecutive positive quarters

INTEREST(HY) At EUR 34.7 MM has Grown at 986.29%
ROCE(HY) Lowest at 16.47%
INVENTORY TURNOVER RATIO(HY) Lowest at 2.47%

With ROE of 13.60%, it has a Attractive valuation with a 1.95 Price to Book Value

Over the past year, while the stock has generated a return of -8.66%, its profits have fallen by -39.2%

Underperformed the market in the last 1 year

Even though the market (France CAC 40) has generated returns of 8.73% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.66% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Vallourec SA should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Vallourec SA for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Vallourec SA

-8.66%

15.96

30.97%

France CAC 40

8.73%

0.52

16.76%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.81%

EBIT Growth (5y)

-21.58%

EBIT to Interest (avg)

97.94

Debt to EBITDA (avg)

0.59

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

1.54

Tax Ratio

29.87%

Dividend Payout Ratio

76.35%

Pledged Shares

Institutional Holding

0.34%

ROCE (avg)

30.37%

ROE (avg)

26.00%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.95

EV to EBIT

8.89

EV to EBITDA

5.20

EV to Capital Employed

1.88

EV to Sales

0.79

PEG Ratio

Dividend Yield

8.66%

ROCE (Latest)

21.13%

ROE (Latest)

13.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at EUR 1,069.8 MM

-13What is not working for the Company

INTEREST(HY)

At EUR 34.7 MM has Grown at 986.29%

ROCE(HY)

Lowest at 16.47%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.47%

NET SALES(Q)

Lowest at EUR 1,854.44 MM

RAW MATERIAL COST(Y)

Grown by 10.41% (YoY

PRE-TAX PROFIT(Q)

Lowest at EUR 238.29 MM

EPS(Q)

Lowest at EUR 0.51

Here's what is working for Vallourec SA

Operating Cash Flow

Highest at EUR 1,069.8 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (EUR MM)

Here's what is not working for Vallourec SA

Interest

At EUR 34.7 MM has Grown at 986.29%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (EUR MM)

Net Sales

Lowest at EUR 1,854.44 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (EUR MM)

Inventory Turnover Ratio

Lowest at 2.47% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Pre-Tax Profit

Lowest at EUR 238.29 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (EUR MM)

EPS

Lowest at EUR 0.51

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (EUR)

Raw Material Cost

Grown by 10.41% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales