olivLaw · European equity research
Valeo FR.PA
France · Euronext Paris · ISIN FR0013176526 · Vertical: Listed companies from France
Valeo is a global supplier of automotive components, organised into the POWER, BRAIN and LIGHT divisions plus the Valeo Service aftermarket business. At its November 2025 capital markets day it presented the Elevate 2028 plan, focused on profitability and cash generation in a sector moving toward electrification and driver assistance technologies.
At the close of 05 Nov 2026, Valeo (FR.PA) stock was 10.94 EUR (−0.36% on the day), with market capitalisation 2.7 bn EUR, P/E 13.5 on diluted EPS of 0.81 EUR over the last 12 months, beta 1.44, 52-week range 9.74–16.64 EUR.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 29.8
- oversold (≤ 30)
- Bollinger (20, 2)
- 10.08 – 14.73
- in the lower half of the band · %B 0.18 · band width 37.5%
- SMA 50 / 200
- 13.65 / 12.86
- mixed trend
- MACD (12, 26, 9)
- -0.85 / -0.72
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | −27.8% | −0.6% | −27.1 pp | — |
| 3 months | −24.7% | −4.2% | −20.6 pp | — |
| 6 months | −4.7% | +4.3% | −9.1 pp | — |
| Year to date | −6.0% | +7.5% | −13.5 pp | — |
| 1 year | −8.9% | +9.9% | −18.8 pp | −6.8% |
| 3 years | −19.7% | +49.8% | −69.5 pp | −15.9% |
| 5 years | −58.8% | +42.8% | −101.6 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 0 percentile of its own 3-quarter history (min 14.1, median 14.4, max 15.5; quarters with earnings only).
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 22.0 bn | 21.5 bn | 20.9 bn |
| Revenue YoY | unavailable | −2.5% | −2.7% |
| Net income | 221.0 m | 162.0 m | 200.0 m |
| Net income YoY | unavailable | −26.7% | +23.5% |
| Diluted EPS | 0.90 | 0.66 | 0.81 |
| Diluted EPS YoY | unavailable | −26.7% | +22.7% |
| net % | 1.0% | 0.8% | 1.0% |
| Free cash flow | 1.5 bn | 1.5 bn | 1.5 bn |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 2.5 bn EUR
- Financial debt
- 5.9 bn EUR
- Net debt
- 3.4 bn EUR
- Equity
- 4.1 bn EUR
- Total assets
- 20.3 bn EUR
- Debt / equity
- 1.45x
- Current ratio
- 0.86x
- ROE
- 4.7%
- ROA
- 1.0%
- FCF margin
- 7.2%
Financial statements (source on every figure)
Revenue and net income (EUR)
Margins
Income statement · EUR
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 22.0 bn | 21.5 bn | 20.9 bn | esef· 07 Apr 2026verified |
| Cost of revenue | 18.1 bn | 17.4 bn | 16.7 bn | esef· 07 Apr 2026verified |
| Gross profit | 4.0 bn ≈ | 4.1 bn ≈ | 4.2 bn ≈ | esef· 07 Apr 2026derived |
| Research & development | 2.0 bn | 2.1 bn | 2.3 bn | esef· 07 Apr 2026verified |
| Pre-tax income | 454.0 m | 333.0 m | 460.0 m | esef· 07 Apr 2026verified |
| Income tax | 154.0 m | 99.0 m | 205.0 m | esef· 07 Apr 2026verified |
| Net income | 221.0 m | 162.0 m | 200.0 m | esef· 07 Apr 2026verified |
| Diluted EPS | 0.90 | 0.66 | 0.81 | esef· 07 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue.
Balance sheet · EUR
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 3.0 bn | 3.2 bn | 2.5 bn | esef· 07 Apr 2026verified |
| Inventories | 2.4 bn | 2.1 bn | 1.9 bn | esef· 07 Apr 2026verified |
| Current assets | 9.4 bn | 8.9 bn | 8.2 bn | esef· 07 Apr 2026verified |
| Goodwill | 3.1 bn | 3.1 bn | 3.0 bn | esef· 07 Apr 2026verified |
| Intangibles (excl. goodwill) | 3.1 bn | 3.3 bn | 3.2 bn | esef· 07 Apr 2026verified |
| Total assets | 21.8 bn | 21.7 bn | 20.3 bn | esef· 07 Apr 2026verified |
| Short-term debt | 957.0 m | 1.3 bn | 484.0 m | esef· 07 Apr 2026verified |
| Long-term debt | 5.1 bn | 4.9 bn | 5.4 bn | esef· 07 Apr 2026verified |
| Current liabilities | 10.8 bn | 11.0 bn | 9.5 bn | esef· 07 Apr 2026verified |
| Equity | 4.4 bn | 4.5 bn | 4.1 bn | esef· 07 Apr 2026verified |
| Shares outstanding at year end | 242.9 m | 241.8 m | 243.9 m | esef· 07 Apr 2026derived |
Cash flow · EUR
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 2.5 bn | 2.7 bn | 2.3 bn | esef· 07 Apr 2026verified |
| Capex | 964.0 m | 1.1 bn | 790.0 m | esef· 07 Apr 2026verified |
| Free cash flow | 1.5 bn ≈ | 1.5 bn ≈ | 1.5 bn ≈ | esef· 07 Apr 2026derived |
| Investing cash flow | -1.9 bn | -2.0 bn | -1.6 bn | esef· 07 Apr 2026verified |
| Financing cash flow | -788.0 m | -524.0 m | -1.2 bn | esef· 07 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 5 of at least 6
- score weight coverage: 35.4% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 2.7 bn EUR
Key indicators
Coverage and freshness
Score by group
35% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 8.98 – 24.14 EUR.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (EUR per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E8.98 – 24.14 (Mid 13.88)20 companies used · median multiple 17.1x · quartiles 11.1x – 29.8x74SW.PA, ABEO.PA, AC.PA, ADP.PA, AF.PA, AI.PA, ALBON.PA, ALCIS.PA, ALCLA.PA, ALFER.PA, ALHEX.PA, ALO.PA, ALPWG.PA, ALSOG.PA, ANTIN.PA, ARAMI.PA, ATE.PA, AUB.PA, AURE.PA, BB.PA
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Assumptions (illustrative, editorial)
- Risk-free rate
- 3.0%
- Equity risk premium
- 5.5%
- Beta (default)
- 1.00
- Cost of equity
- 8.5%
- Terminal growth
- 2.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 35.4% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 1.0% | 44 (vs peers) | 18% |
| FCF conversion · Quality | 749.5% | 100 (on a fixed band) | 18% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 0.9x | 5 (on a fixed band) | 12% |
| P/E (TTM) · Valuation | 13.5x | 70 (vs peers) | 29% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 56.2% | 100 (on a fixed band) | 24% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial5/100 · 1/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality72/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation83/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
VALEO (FR.PA). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 20.9 bn EUR in 2025; YoY growth -2.7%; net margin 1.0%; ROE 5.7%.
The estimated value range is 8.98–24.14 EUR per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 13.88 EUR, the price of 10.94 EUR leaves a potential of 26.9% (value / price − 1) and a margin of safety of 21.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 35.4% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 749.5%
- FCF yield: 56.2%
What contradicts it
- Current ratio: 0.9x
Not assessed (insufficient data or a ratio without meaning): ROIC, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Listed companies from France · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AI.PAL'air Liquide Societe Anonyme Pour L'etude Et L'exploitation Des Procedes Georges Claude | 109.3 bn | 33.2 | 12.9% | 12.2% | −2.0% | +26% / +32% |
| AC.PAAccor | 13.8 bn | 30.7 | 9.6% | 8.0% | +0.6% | +6% / +56% |
| ADP.PAAeroports De Paris | 11.7 bn | 34.1 | 7.8% | 5.6% | +12.1% | −7% / +4% |
| AKE.PAArkema | 7.1 bn | 115.4 | 0.9% | 0.7% | −5.0% | +12% / −37% |
| ALO.PAAlstom | 5.8 bn | 18.3 | 3.1% | 1.7% | +3.7% | −51% / −4% |
| AF.PAAir France - Klm | 4.3 bn | 13.6 | — | 1.0% | +4.8% | +20% / +9% |
| ATE.PAAlten | 3.1 bn | 29.5 | 4.8% | 2.6% | −1.1% | +33% / −29% |
| BB.PASociete Bic | 2.7 bn | 31.3 | 5.0% | 4.1% | −4.8% | +32% / +5% |
| FR.PAValeo | 2.7 bn | 13.5 | 5.7% | 1.0% | −2.7% | +0% / −18% |
| ANTIN.PAAntin Infrastructure Partners | 1.4 bn | 13.0 | 21.9% | 36.6% | −8.1% | −24% / −35% |
| 74SW.PA74software | 792.7 m | 20.9 | 8.9% | 8.5% | +44.8% | −13% / +41% |
| AUB.PAAubay | 667.4 m | 17.8 | 13.6% | 6.3% | +11.3% | +3% / +45% |
| ASY.PAAssystem | 507.1 m | 69.9 | 2.5% | 1.1% | +7.4% | −19% / −18% |
| ATO.PAAtos Se | 483.0 m | — | -23,400.0% | -17.5% | −16.5% | −45% / −94% |
| ARAMI.PAAramis Group | 298.8 m | 15.0 | 10.0% | 0.8% | +6.3% | −33% / −16% |
| ARVEN.PAArverne Group | 246.1 m | — | -14.0% | -115.3% | +27.0% | +20% / −35% |
| BGO.PACompagnie Chargeurs Invest | 189.4 m | — | -8.6% | -5.7% | −2.9% | unavailable / unavailable |
| ALCIS.PACatering International & Services | 145.0 m | 28.4 | 9.3% | 1.9% | +5.8% | +39% / +107% |
| ALCGM.PACegedim | 144.6 m | — | -2.6% | -1.2% | +10.9% | −26% / −49% |
| ATEME.PAAteme | 144.0 m | 151.3 | 2.8% | 1.0% | +2.2% | +82% / +77% |
| ALHEX.PAHexaom | 144.0 m | 6.7 | 9.9% | 2.2% | +13.1% | −32% / +7% |
| ALBON.PACompagnie Lebon | 111.7 m | 16.5 | 4.2% | 8.8% | −17.9% | +6% / +8% |
| ALHYF.PALhyfe | 75.8 m | — | -33.4% | -570.5% | +287.2% | unavailable / unavailable |
| ALFER.PASergeferrari Group | 61.5 m | 11.5 | 5.1% | 1.5% | +7.4% | −33% / −27% |
| ABEO.PAAbeo | 60.8 m | 7.3 | 6.9% | 3.0% | +12.6% | −13% / −54% |
1- and 3-year price returns: for FR.PA from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (EUR)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 6.07 Total return -45% · Per year -45% | 10.77 Total return -2% · Per year -2% | 16.27 Total return 49% · Per year 49% |
| 3 years | 5.06 Total return -54% · Per year -23% | 10.18 Total return -7% · Per year -2% | 17.02 Total return 56% · Per year 16% |
| 5 years | 4.22 Total return -61% · Per year -17% | 9.63 Total return -12% · Per year -3% | 17.79 Total return 63% · Per year 10% |
- Exit P/E± 2.55
- Net margin± 1.78
- Annual revenue growth± 1.57
- Annual dilution± 0.15
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Valeo is a global supplier of automotive components, organised into the POWER, BRAIN and LIGHT divisions plus the Valeo Service aftermarket business. At its November 2025 capital markets day it presented the Elevate 2028 plan, focused on profitability and cash generation in a sector moving toward electrification and driver assistance technologies.
SWOT
Strengths
- A broad portfolio of technologies for electrification, driver assistance and lighting, organised into three complementary divisions.
- Established relationships with vehicle manufacturers and distribution networks through Valeo Service.
- A clear strategic programme, Elevate 2028, presented to investors with profitability targets.
Weaknesses
- Dependence on vehicle manufacturer volumes makes revenue sensitive to industry cycles.
- Heavy research and development spending could weigh on short-term profitability.
- The need to improve cash generation, an explicit objective of the strategic plan.
Opportunities
- Rising demand for electrification and driver assistance could open new contracts.
- Growth in service and spare parts activity could help stabilise revenue.
- Emission reduction requirements could favour products that avoid emissions.
Threats
- Manufacturer pressure for lower prices could reduce margins.
- Global competition from other component suppliers could limit market share.
- Regulatory changes or a slower pace of electrification could affect growth plans.
Risks
- Dependence on vehicle manufacturershigh
Revenue depends on orders from a few large manufacturers, and a cut in their orders could quickly affect volumes.
- Pace of electrificationhigh
If adoption of electric vehicles slows, investments in the POWER division could earn a lower return than anticipated.
- Margin pressuremedium
Customer demands for lower prices could compress the group's profitability.
- Supply chainmedium
Supply disruptions or dependence on upstream suppliers could disrupt production.
- Regulation and compliancelow
Changes in rules on data protection, emissions and human rights could generate additional costs.
Investment thesis
What would need to be true (bull case)
- If the Elevate 2028 plan meets its profitability targets, the group could materially improve cash generation.
- Positioning in electrification and driver assistance could let Valeo benefit from growth in these segments.
- The Valeo Service business could provide steadier revenue than manufacturer production.
What would break the thesis
- If manufacturers keep pressing prices, the group's margins could stay under pressure over the long term.
- If electrification slows, the heavy investments could earn an insufficient return.
- Dependence on a small number of major customers could leave revenue exposed to order cuts.
What to watch
- Progress of the Elevate 2028 plan and profitability targets2026
- Board renewal and election of the new chair at the general meetingMay 2026
- Cash generation trends across the three divisionsnext 10-K
- Pace of electric vehicle adoption in Europe and its effect on the POWER division2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Valeo designs and manufactures systems and components for motor vehicles, with vehicle manufacturers as its main partners, supplied directly, and distribution networks through Valeo Service. The activity runs from research and development through production to first-tier suppliers, and on to sales and end use. The group states its commitment to a cleaner, safer and more diversified mobility 1.
Valeo's group structure is presented through three product divisions, POWER, BRAIN and LIGHT, together with Valeo Service. The Elevate 2028 plan details the strategic and financial trajectory and actions aimed at improving profitability and cash generation across these divisions 1.
Governance rests on a board of 14 members at 31 December 2025, including employee-elected directors, and board renewal is scheduled at the May 2026 general meeting 1.
Segments
POWER
The POWER division brings together propulsion and electrification solutions, an area the group describes as central to the transition to new forms of mobility. The extract does not give divisional sales figures.
BRAIN
The BRAIN division focuses on electronics and software for driver assistance and automated driving. The strategic plan indicates growth prospects, though the available source does not detail divisional figures.
LIGHT
The LIGHT division covers automotive lighting systems. As with the other divisions, the document only states that it has growth prospects defined in the Elevate 2028 plan.
Market context
Valeo places its activity in the manufacture of motor vehicle parts and accessories, which under the ESRS classification is its most significant sector. The market is shaped by European Union regulation and by manufacturers' decarbonisation requirements.
Main customers are vehicle manufacturers, and demand depends on the pace of electrification and new forms of mobility. The group tracks market trends through studies and participation in trade fairs and professional bodies.
Trends
- Vehicle electrificationmixed
Demand for electrification solutions for passenger cars is a key driver of Valeo's strategy, reflected in the POWER division. If the pace of adoption slows, volumes could come in below the group's expectations.
- Emissions regulationtailwind
The European Union regulatory framework requires emission reductions and shapes customer decisions, which could favour products that avoid emissions.
- Driver assistance and automated drivingmixed
Development of driver assistance systems, supported by the BRAIN division, responds to growing manufacturer demand but requires large research and development investment.
- Cost pressure across the industryheadwind
Manufacturers seek lower prices and supply continuity, which could compress tier-1 supplier margins if costs cannot be passed on.
Competitive position
Valeo operates in a sector where competition comes from other global automotive component suppliers. The available document does not provide a detailed analysis of competitors or market shares.
The group's differentiation rests on research, innovation and its range of electrification and driver assistance products, along with its relationships with manufacturers and distribution networks.
- Global automotive component suppliers
Direct competition in propulsion, electronics and lighting parts; the source does not name specific companies.
- Driver assistance electronics and software suppliers
Competition in driver assistance systems in the BRAIN division; the source does not name companies.
- Automotive lighting system makers
Competition in automotive lighting, the LIGHT division's field; the source does not name companies.
- Aftermarket service and spare parts suppliers
Competition in distribution and service, where Valeo Service operates.
News & filings
In the press
- Valeo Foods Group sells Ireland businessYahoo Finance — News · 28 Aug 2026 · EN
Annual reports (ESEF)
- Annual report 202507 Apr 2026
- Annual report 202415 Apr 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Valeo · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.