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Valeo

  FR FP

New all-time-high margins just after the crisis
Updates
31/07/2010EPS change
Change in EPS2010 : € 3.06 vs 1.35+126 %
2011 : € 3.73 vs 2.07+80.2 %

Valeo's H1 10 numbers were substantially ahead of our expectations and we have upgraded our profit expectations

New all-time-high margins just after th...
29/07/2010Earnings/sales releases
H1 10 revenue growth of 38% to €4.8b...
27/04/2010Earnings/sales releases
Thanks to the sharp rise in car produc...
13/03/2010Other news/comments
Valeo's operating profit margin peake...
25/02/2010Earnings/sales releases
Valeo's 2009 sales of €7.5bn (down 1...
21/10/2009Earnings/sales releases
Having achieved a break-even bottom...
30/07/2009Latest
At a glance H1 09 numbers look good ...
23/07/2009Latest
Valeo received a €300m loan from the...
15/07/2009Latest
Valeo is reducing the number of divisi...
Summary Key Data
  12/08A
12/09A
12/10E
12/11E
12/12E
AlphaValue P/E (x) -10.7 -9.95
Dividend yield (%) 0.00 0.00
EV/EBITDA (x) 5.89 5.24
AlphaValue EPS (€) -1.94 -1.50
Dividend (€) 0.00 0.00
Sales (€M) 8,664 7,499
EBITDA (€M) 565 522
Attributable net profit (€M) -207 -153
ROE (after tax) (%) -13.6 -12.0
ROCE (%) 2.50 4.27
Gearing (%) 62.2 65.2
Next Div. Indic € 1.00 payment
Target
Price (€) 28.8
Market Cap (€M) 2,249
Perf. 1W: 6.98 %
Perf. 1M: -0.50 %
Perf. 3M: 18.2 %
Perf Ytd: 17.2 %
Rating
  • Strong momentum corresponding to a continuous and overall positive moving average trend confirmed by volumes
  • Relatively good momentum corresponding to a positively-oriented moving average, but offset by an overbought pattern or lack of confirmation from volumes
  • Relatively unfavorable momentum with a neutral or negative moving average trend, but offset by an oversold pattern or lack of confirmation from volumes
  • Strongly negative momentum corresponding to a continuous and overall negative moving average trend confirmed by volumes
VALUE
RISK
GOVERNANCE
RANKING
Best
Worst
Businesses & Trends
Valeo manufactures and sells car components to OEMs (83% of H1 10 sales) and the replacement market (15%). The products are... Read More
Money Making
Car component manufacturers operate in a highly competitive environment. They are under price pressure from their clients and, al... Read More
Valuation
In our NAV valuation we use EV/EBITDA multiples of 4x and multiply this number by our forecast divisional profits for the next three... Read More
Analyst: Hans-Peter Wodniok
Concepts
Business concepts
  • Structural overcapacity
  • Labour intensive
  • Shareholder is last stak...
Investment Concepts
  • Margin contraction
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