Valeo SE

FR

Equity

ISIN FR0013176526 / Valor 32745150

Euronext - Euronext Paris (2024-09-18)

EUR 9.59+1.50%

Valeo SE
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About company

Valeo SE, originally founded as SAFF in 1923 by Eugène Buisson, has evolved into a global leader in the automotive market, with a presence in over 15 countries through numerous subsidiaries. The company's core business focuses on providing a wide range of electrical equipment for vehicles, including spark plugs, alternators, starters, ignition, lighting, and wiper systems. Over the years, Valeo has expanded its product offerings and innovation capacity to cater to the evolving needs of the automotive industry, with a particular emphasis on developing technologies for cleaner, safer, and smarter mobility solutions. Additionally, Valeo has diversified its equipment supplies to include a variety of vehicles beyond traditional cars, such as electric micromobility options and autonomous shuttles, positioning itself as a key player in the global mobility sector.

Summarized from source with an LLMView SourceSector: Consumer Cyclicals

Operating Margin and Free Cash Flow

In the first half of 2024, Valeo SE reported an operating margin of 4.0%, which represents a 23% increase compared to the same period in 2023. The company also generated a free cash flow of 121 million euros, a significant improvement from the negative 156 million euros recorded in the first half of 2023. This improvement is attributed to rigorous management and cost reduction measures.

Sales Performance

Valeo SE's total sales for the first half of 2024 amounted to 11,117 million euros, reflecting a 1% increase on a like-for-like basis compared to the same period in 2023. However, when considering changes in exchange rates and group structure, the sales were down by 1%. The original equipment sales were particularly impacted, showing a 1% decline like for like.

Order Intake

Valeo SE's order intake for the first half of 2024 was 9.1 billion euros, a significant decrease from the 18.8 billion euros recorded in the first half of 2023. This decline is primarily due to projects being postponed to the second half of the year. Despite this, the company remains optimistic about meeting its full-year objectives.

Net Debt and Leverage Ratio

As of June 30, 2024, Valeo SE's net debt stood at 4,010 million euros, slightly down from 4,028 million euros at the end of 2023. The leverage ratio, which measures net debt to EBITDA, remained stable at 1.5x. This stability indicates the company's effective management of its financial structure.

Segment Performance

Valeo SE's POWER Division, which caters to all types of powertrains, accounted for 51% of the Group's total sales in the first half of 2024. The BRAIN Division, focusing on driving assistance and software-defined vehicles, and the LIGHT Division, specializing in innovative lighting systems, also contributed positively. However, the high-voltage electric powertrain business within the POWER Division saw a significant decline of 43%.

Summarized from source with an LLMView Source

Key figures

-43.7%1Y

-55.6%3Y

-68.0%5Y

Performance

41.3%1Y

44.9%3Y

47.6%5Y

Volatility