Vallourec (France) Buy Hold or Sell Recommendation
| VK Stock | EUR 16.65 0.06 0.36% |
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding Vallourec is 'Not Rated'. Macroaxis provides Vallourec buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding VK positions.
Check out Vallourec Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Vallourec and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Vallourec. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey.
Vallourec |
Execute Vallourec Buy or Sell Advice
The Vallourec recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Vallourec. Macroaxis does not own or have any residual interests in Vallourec or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Vallourec's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Buy
Market Performance | Good | Details | |
Volatility | Slightly risky | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Vallourec Trading Alerts and Improvement Suggestions
| Vallourec has accumulated 1.39 B in total debt. Vallourec has a current ratio of 0.6, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Vallourec until it has trouble settling it off, either with new capital or with free cash flow. So, Vallourec's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Vallourec sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Vallourec to invest in growth at high rates of return. When we think about Vallourec's use of debt, we should always consider it together with cash and equity. | |
| Vallourec has accumulated about 1.24 B in cash with (145.81 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 109.51, which can makes it an attractive takeover target, given it will continue generating positive cash flow. | |
| Roughly 60.0% of the company outstanding shares are owned by institutional investors |
Vallourec Returns Distribution Density
The distribution of Vallourec's historical returns is an attempt to chart the uncertainty of Vallourec's future price movements. The chart of the probability distribution of Vallourec daily returns describes the distribution of returns around its average expected value. We use Vallourec price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Vallourec returns is essential to provide solid investment advice for Vallourec.
| Mean Return | 0.35 | Value At Risk | -3.33 | Potential Upside | 4.05 | Standard Deviation | 2.22 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Vallourec historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Vallourec Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Vallourec or Basic Materials sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Vallourec's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Vallourec stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.33 | |
β | Beta against Dow Jones | 0.11 | |
σ | Overall volatility | 2.22 | |
Ir | Information ratio | 0.11 |
Vallourec Volatility Alert
Vallourec currently demonstrates below-average downside deviation. It has Information Ratio of 0.11 and Jensen Alpha of 0.33. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Vallourec's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Vallourec's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Vallourec Fundamentals Vs Peers
Comparing Vallourec's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Vallourec's direct or indirect competition across all of the common fundamentals between Vallourec and the related equities. This way, we can detect undervalued stocks with similar characteristics as Vallourec or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Vallourec's fundamental indicators could also be used in its relative valuation, which is a method of valuing Vallourec by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Vallourec to competition |
| Fundamentals | Vallourec | Peer Average |
| Return On Equity | -0.2 | -0.31 |
| Return On Asset | 0.0393 | -0.14 |
| Profit Margin | (0.08) % | (1.27) % |
| Operating Margin | 0.07 % | (5.51) % |
| Current Valuation | 3.63 B | 16.62 B |
| Shares Outstanding | 231.63 M | 571.82 M |
| Shares Owned By Insiders | 0.49 % | 10.09 % |
| Shares Owned By Institutions | 60.00 % | 39.21 % |
| Price To Earning | (3.80) X | 28.72 X |
| Price To Book | 1.54 X | 9.51 X |
| Price To Sales | 0.56 X | 11.42 X |
| Revenue | 3.44 B | 9.43 B |
| Gross Profit | 836.58 M | 27.38 B |
| EBITDA | 462.08 M | 3.9 B |
| Net Income | 39.55 M | 570.98 M |
| Cash And Equivalents | 1.24 B | 2.7 B |
| Cash Per Share | 109.51 X | 5.01 X |
| Total Debt | 1.39 B | 5.32 B |
| Current Ratio | 0.61 X | 2.16 X |
| Book Value Per Share | 8.84 X | 1.93 K |
| Cash Flow From Operations | (145.81 M) | 971.22 M |
| Earnings Per Share | (0.99) X | 3.12 X |
| Price To Earnings To Growth | 0.07 X | 4.89 X |
| Target Price | 19.2 | |
| Number Of Employees | 17 K | 18.84 K |
| Beta | 2.62 | -0.15 |
| Market Capitalization | 3.13 B | 19.03 B |
| Total Asset | 4.75 B | 29.47 B |
| Retained Earnings | (415 M) | 9.33 B |
| Working Capital | 1.03 B | 1.48 B |
| Current Asset | 3.48 B | 9.34 B |
| Current Liabilities | 2.46 B | 7.9 B |
| Z Score | 1.2 | 8.72 |
Vallourec Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Vallourec . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Vallourec Buy or Sell Advice
When is the right time to buy or sell Vallourec? Buying financial instruments such as Vallourec Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
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Other Information on Investing in Vallourec Stock
Vallourec financial ratios help investors to determine whether Vallourec Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Vallourec with respect to the benefits of owning Vallourec security.