Valeo SE (FR.PA) stock analysis

In our weekly check, Valeo SE is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 11 pass, warnings: 11, red flags: 3.

About Valeo SE

Valeo SE is a Consumer Cyclical company (Auto - Parts) based in France, listed on PAR as FR.PA.

What our checks show for FR.PA

Red flags

• Net debt is 1.4x a year of EBITDA (debt/equity 2.02). That limits room in a downturn and raises refinancing risk.
• The net margin is only 1%: little room if costs rise.
• The stock has fallen as much as 90% from a peak. Would you have held through that?

Warning signs

• Operating profit covers interest only 2.9 times: a weak year could make the payments hard.
• The net margin fell by 0.1 points over 5 years, to 1%: the company keeps less of each sale as profit.
• Analysts expect only about 0.9% a year of growth in revenue.
• Revenue grew only 1.4% a year over the last 3 years.
• Earnings per share fell 5.2% a year over the last 3 years.
• Net profit fell 4.6% a year over the last 3 years.
• Free cash flow is only 2.5% of revenue.
• The price swings a lot: 49.4% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.
• Beta 1.3: the stock usually moves more than the market, both up and down.
• Return on capital (ROCE) is only 8.7%.

Strengths

• The gross margin is 15% and has risen by 1.7 points: pricing power is holding.
• Operating cash flow is 11.45x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 41.4% a year over the next years.
• The dividend takes 46% of profit: there is a cushion.
• The price is 13.6 times earnings (P/E), reasonable for its growth.
• Pay in shares is only 6.1% of free cash flow.

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Questions

What grade does Valeo SE (FR.PA) have?

In our weekly check, Valeo SE is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 11 pass, warnings: 11, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of FR.PA stock?

This week's biggest flags for Valeo SE: High debt, Thin margins, Deep past fall. In total 14 of 25 checks show a warning or a red flag.

What does Valeo SE do?

Valeo SE is a Consumer Cyclical company (Auto - Parts) based in France, listed on PAR as FR.PA.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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