FR.PA - Valeo SA

Paris - Paris Delayed Price. Currency in EUR
24.14
-0.18 (-0.74%)
As of 4:33PM CEST. Market open.
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Previous Close24.32
Open24.40
Bid0.00 x 0
Ask0.00 x 0
Day's Range24.00 - 24.79
52 Week Range22.69 - 41.82
Volume655,442
Avg. Volume1,466,848
Market Cap5.765B
Beta (3Y Monthly)1.71
PE Ratio (TTM)22.60
EPS (TTM)1.07
Earnings DateJul 23, 2019 - Jul 29, 2019
Forward Dividend & Yield1.25 (5.08%)
Ex-Dividend Date2019-05-30
1y Target Est35.53
  • If Negative Yields Are a Drug, Europe Is Just Saying No
    Bloomberg

    If Negative Yields Are a Drug, Europe Is Just Saying No

    (Bloomberg) -- Valeo SA used to be a stock-market darling until a slowdown in China and changing rules on emissions hammered the shares and hit its credit rating. Yet you wouldn’t know it looking at the debt market where the yield on a Valeo bond due in 2022 slipped below zero last month.It looks like a golden opportunity for the French auto-parts maker to gorge on ultra-cheap borrowing. But it isn’t interested -- and the restraint tells you everything about the European Central Bank’s uphill battle to revive animal spirits.“Low interest rates are like a mild drug,” said Chief Executive Officer Jacques Aschenbroich. “There’s an addicting effect that we want to avoid. We don’t say: debt is cheap so we will pile up debt.”Valeo joined the likes of Unilever NV and SAP SE in the 1.1 trillion euro ($1.2 trillion) global pool of corporate debt trading with yields below zero, according to data compiled by Bloomberg. The stockpile of negative obligations across all markets hit a record $16.7 trillion last week, and could swell further as the ECB preps fresh stimulus.If companies lock in these rates in the primary market, they could in effect be getting paid to borrow. But don’t expect a borrowing binge to finance acquisitions or share buybacks. Growing signs that Europe is headed into a recession -- with the German government preparing a stimulus program to weather a deep slump -- mean treasurers have plenty of reasons to resist.“Leverage in Europe is low and it could stay that way -- even though many companies are able to issue debt with negative or record-low yields,” said Mahesh Bhimalingam, a credit strategist at Bloomberg Intelligence. “It’s hard to see the appeal of loading up on debt to make an investment when the potential return on that investment looks highly uncertain, given the outlook in Europe.”French luxury goods maker LVMH and drugmaker Sanofi are among a small handful that issued debt this year with negative yields -- the securities had a coupon of zero and investors paid more for them than the face amount. It’s hardly a wave.For that to happen, companies may need to reconsider the restraint they’ve shown since the ECB started cutting rates and buying debt. Weak confidence in the outlook for growth and profits will only entrench their reluctance.The average ratio of net debt to operating earnings before interest, tax, depreciation and amortization for European investment-grade corporate bonds was 1.7 times in 2009, according to Fitch Ratings Inc. The rating company forecasts average leverage of just 1.6 times in 2019.“This is the time to take debt because you can lock it in for 30 years,” said Sharon Katz, associate professor of accounting and control at Insead Business School in Fontainebleau, France. “Not all companies will go for it. If you have a cash flow problem, you still need to pay the principal at some point.”Consider Altice Europe NV. Only a few years ago, the Amsterdam-based telecommunications company was well known in the debt market for its soaring leverage. So even though the yield on one of its securities turned negative in July, it’s keeping the focus on cutting borrowing and disposing assets.“We expect to significantly reduce interest expense in the next two years as we are deleveraging rapidly,” Dennis Okhuijsen, an adviser to the company, said on an earnings call last month. “As always we are refinancing and reviewing our refinancing options.”Don’t rule out a shift by executives entirely. Shareholders could become an important source of pressure on treasurers, Bank of America Merrill Lynch Corp. analysts led by Barnaby Martin said in a recent note. The issuance could finance mergers, dividend payments or to plug gaps in cash flow, they said.“It’s quite possible that a company could be tempted to take on ever more leverage in a world where earnings growth is more feeble,” said Oystein Borsum, strategist at Swedbank AB. “How else are you going to get earnings going?”European firms can be forgiven for failing to spot a raft of investment opportunities in a world of weak demand and policy uncertainty. Many seem aware of the risks. Nordic brewer Carlsberg A/S, for one, has focused on cutting debt and reducing costs in recent years.“The moment you get seduced by low rates and companies feel like they have to use them to do very big things -- maybe bigger than they can absorb -- they have to remember they all have to pay the bill later,’’ said Cees ’t Hart, CEO of Carlsberg. “There are many companies that have been a lot more aggressive than we have who have then gotten into problems afterwards.”If corporates don’t play ball, it raises questions about whether the ECB’s fresh round of stimulus would revive business activity and inflation. Gross domestic product in Germany shrank in the second quarter. The Bloomberg Intelligence global GDP tracker shows growth of just 2.4% in the second quarter.Doubling down on the ECB’s existing toolkit “simply won’t work any more,” Philipp Hildebrand, vice chairman at BlackRock and former head of the Swiss National Bank, said in an interview on Bloomberg Television.(Adds German fiscal plan in fifth paragraph.)\--With assistance from Ania Nussbaum and Christian Wienberg.To contact the reporters on this story: Jennifer Ryan in London at jryan13@bloomberg.net;Tasos Vossos in London at tvossos@bloomberg.net;Angelina Rascouet in Paris at arascouet1@bloomberg.netTo contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Sid VermaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Does Valeo (EPA:FR) Have A Healthy Balance Sheet?
    Simply Wall St.

    Does Valeo (EPA:FR) Have A Healthy Balance Sheet?

    David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

  • Reuters

    UPDATE 2-India's passenger vehicle sales drop at steepest pace in nearly two decades

    India's domestic passenger vehicle sales in July dived at the steepest pace in nearly two decades, an auto industry body said on Tuesday, as a financing crunch deepened a crisis in the country's autos sector and triggered large-scale job losses. Sales of passenger vehicles to car dealers plunged 30.9% to 200,790 in July, the ninth straight month of declines, data released by the Society of Indian Automobile Manufacturers (SIAM) showed.

  • Exclusive: Tens of thousands losing jobs as India's auto crisis deepens - sources
    Reuters

    Exclusive: Tens of thousands losing jobs as India's auto crisis deepens - sources

    Slumping sales of cars and motorcycles are triggering massive job cuts in India's auto sector, with many companies forced to shut down factories for days and axe shifts, multiple sources said. The layoffs come as carmakers including Honda Motor Co, Tata Motors and Mahindra & Mahindra have implemented brief suspensions to production in recent weeks in the face of slow demand, separate sources said.

  • Valeo SA (EPA:FR): Is It A Smart Long Term Opportunity?
    Simply Wall St.

    Valeo SA (EPA:FR): Is It A Smart Long Term Opportunity?

    In December 2018, Valeo SA (EPA:FR) released its earnings update. Generally, the consensus outlook from analysts...

  • Do Institutions Own Shares In Valeo SA (EPA:FR)?
    Simply Wall St.

    Do Institutions Own Shares In Valeo SA (EPA:FR)?

    A look at the shareholders of Valeo SA (EPA:FR) can tell us which group is most powerful. Institutions often own...

  • Car parts group Valeo announces 500 million euros of orders for its 'Lidar' sensors
    Reuters

    Car parts group Valeo announces 500 million euros of orders for its 'Lidar' sensors

    French car parts company Valeo has won 500 million euros ($564 million) worth of orders for its 'Lidar' car sensor products, Valeo executive Marc Vrecko told Reuters in an interview, highlighting the potential growth of Lidar. The upbeat comments helped Valeo shares to rise by around 2% in early session trading. Lidar is the laser imaging technology used increasingly in self-driving cars to generate precise pictures of the environment around the vehicles.

  • An Intrinsic Calculation For Valeo SA (EPA:FR) Suggests It's 31% Undervalued
    Simply Wall St.

    An Intrinsic Calculation For Valeo SA (EPA:FR) Suggests It's 31% Undervalued

    Does the June share price for Valeo SA (EPA:FR) reflect what it's really worth? Today, we will estimate the stock's...

  • GuruFocus.com

    Bestinver Comments on Valeo

    Guru stock highlight

  • Should You Care About Valeo SA’s (EPA:FR) Investment Potential?
    Simply Wall St.

    Should You Care About Valeo SA’s (EPA:FR) Investment Potential?

    Today we'll look at Valeo SA (EPA:FR) and reflect on its potential as an investment. In particular, we'll consider its...

  • GlobeNewswire

    Valeo's 2019 Annual Shareholders' Meeting - Press Release

    Valeo's Annual Shareholders' Meeting was held today under the chairmanship of Jacques Aschenbroich, Chairman and Chief Executive Officer. During the meeting, shareholders approved the 2018 financial statements published on February 21, 2019 as well as a dividend of 1.25 euro per share, unchanged from the previous year, and corresponding to a payout ratio of 54%. The shareholders reappointed Jacques Aschenbroich and appointed Olivier Piou and Patrick Sayer as directors for four-year terms to replace Pascal Colombani and Michel de Fabiani whose terms of office had expired and who had not sought reappointment.

  • Reuters

    U.S.-China trade gloom casts heavy shadow on European stocks

    European stocks snapped a three-day winning streak on Friday amid global trade jitters after Beijing ratcheted up its war of words with Washington, while the end of Brexit talks between British political ...

  • How Good Is Valeo SA (EPA:FR), When It Comes To ROE?
    Simply Wall St.

    How Good Is Valeo SA (EPA:FR), When It Comes To ROE?

    One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will...

  • GlobeNewswire

    Valeo announces an employee share offering

    Valeo announces an employee share offering Paris, May 2, 2019 - Valeo announces the launch of a share subscription offering reserved for employees. Around 94 000 Group.

  • Investors Who Bought Valeo (EPA:FR) Shares A Year Ago Are Now Down 42%
    Simply Wall St.

    Investors Who Bought Valeo (EPA:FR) Shares A Year Ago Are Now Down 42%

    Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Valeo SA (EPA:FR) shareholders should be happy to see the share price up 25% in the last month...

  • Valeo sales dip on slowing auto production
    Reuters

    Valeo sales dip on slowing auto production

    French auto parts maker Valeo said sales fell 0.8 percent in the first quarter amid sharper declines in vehicle production in some of its major markets. Revenue fell to 4.841 billion euros (£4.190 billion) in January-March from 4.881 billion euros a year earlier, as global auto production dropped 7 percent, the Paris-based company said. The maker of lighting, self-driving, electrified and fuel-saving systems said it was on course to outpace auto production by a wider margin in 2019, reiterating full-year goals.

  • Thomson Reuters StreetEvents

    Edited Transcript of FR.PA earnings conference call or presentation 21-Feb-19 5:45pm GMT

    Full Year 2018 Valeo SA Earnings Call

  • Reuters

    Continental, Valeo seek EU antitrust action against Nokia

    German car parts maker Continental and French rival Valeo have joined Daimler and Bury Techologies to seek an EU antitrust investigation into Nokia's patent licensing practices for cars, the Finnish tech company said on Wednesday. Last month, German carmaker Daimler and Bury complained to the European Commission about Nokia's patents essential to car communications.

  • France, braced for activist raids, raises Valeo stake
    Reuters

    France, braced for activist raids, raises Valeo stake

    The French government has increased its stake in Valeo, an auto parts maker previously targeted by activist investors, as the company is buffeted by a downturn in the auto market and a cooling of expectations for self-driving cars. The stake increase "reflects Bpifrance's intention to invest in French companies with strong growth potential", a spokeswoman for the government investment fund said on Thursday. Valeo declined to comment on the government move.

  • These Factors Make Valeo SA (EPA:FR) An Interesting Investment
    Simply Wall St.

    These Factors Make Valeo SA (EPA:FR) An Interesting Investment

    Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! I've been keeping an eye on Valeo SA (EPA:FR) becauseRead More...

  • Moody's

    Valeo S.A. -- Moody's downgrades Valeo to Baa3, from Baa2; outlook stable

    Moody's Investors Service ("Moody's") has today downgraded the long-term issuer rating and senior unsecured ratings of Valeo S.A. (Valeo) to Baa3, from Baa2. Concurrently, it downgraded the company's commercial paper rating to Prime-3 (P-3) from P-2. "The downgrade of Valeo's ratings is driven by the continued deterioration of the global automotive industry environment, and its negative implications on Valeo's credit metrics." said Matthias Heck, a Moody's Vice President -- Senior Credit Officer and Lead Analyst for Valeo.