# Vallourec (VK.PA)

Canonical: https://gigainvestors.com/s/VK.PA

Analysis as of: 2026-10-16T07:37:17.477Z. Financial observations: FY2001–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 18.38 per share; close as of 2026-10-15.

Estimated value: low EUR 21.62 per share, central EUR 24.01 per share, high EUR 27.19 per share. Buy at or below the central value EUR 24.01 per share. Valuation as of 2026-10-16T07:37:17.477Z; scenarios are not confidence intervals.

Expected annual return: 12.9% at the stated quote. About 12.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; FR 10-year bond 4.8% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 6

- Operating margin variation: 131.50×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.25×

- FY2017: -0.13×

- FY2018: -0.07×

- FY2019: 0.01×

- FY2020: -0.10×

- FY2021: 0.11×

- FY2022: -0.02×

- FY2023: 0.17×

- FY2024: 0.16×

- FY2025: 0.15×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -1.4%

- ROIC, second-lowest year: -16.6%

- Typical minus recent gross margin: -4.1 pp

- Typical gross margin (annual median): 20.4%

- Recent gross margin (lower of latest and 3-year median): 24.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.1%

- ROIC including acquisitions, ten-year median: -7.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -16.6%

- FY2017: -16.8%

- FY2018: -7.2%

- FY2019: 0.6%

- FY2020: -12.2%

- FY2021: 9.6%

- FY2022: -3.4%

- FY2023: 20.7%

- FY2024: 18.9%

- FY2025: 17.8%

### economics: pass

- Owner earnings / net income, 5-yr: 1.15×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 1.1B

- Net income, five-year total: EUR 975M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.5 pp

- Working capital / revenue, change between three-year averages: -10.6 pp

- Working capital / revenue, final three-year average: 23.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 2.37×

- FY2022: 0.94×

- FY2023: 0.98×

- FY2024: 1.15×

- FY2025: 1.02×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -16.6% vs 18.9%

- Per-share earnings: -23.68 to 1.82 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 39.3%

- Ordinary dilution, 5-year annual growth: 20.3%

- Market cap gain: EUR 1.1B

- Cumulative retained earnings: EUR 1.1B

- Diluted shares, 10-year annual growth: 39.3%

- Diluted shares, 5-year annual growth: 20.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: EUR 25.51

- Per-share value, starting three-year median: EUR -23.68

- Per-share value, ending three-year median: EUR 1.82

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.3%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Acquisition spending: EUR 43M

- Cumulative net income, 10 years: EUR -2.5B

- ROIC, first three-year median: -16.6%

- ROIC, last three-year median: 18.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: EUR -23.68

- FY2017: EUR -6.69

- FY2018: EUR -6.27

- FY2019: EUR -4.19

- FY2020: EUR -13.29

- FY2021: EUR 0.37

- FY2022: EUR -1.58

- FY2023: EUR 2.07

- FY2024: EUR 1.82

- FY2025: EUR 1.41

### accounting: pass

- Sloan accruals: -4.2%

- Receivables to sales index (DSRI): 0.84×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.58×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.03×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.6%

- FY2017: -3.8%

- FY2018: -2.1%

- FY2019: -6.2%

- FY2020: -26.8%

- FY2021: 3.9%

- FY2022: -6.4%

- FY2023: -3.8%

- FY2024: -0.7%

- FY2025: -4.2%

## Holders

## Price story

Down 28% since Apr 2026 · sales -5.6%

Story as of 2026-10-16T10:00:08.925Z; price observation 2026-10-15.

Price needs cash profits to shrink 3.3% a year for ten years

- 2025-06-30: Vallourec Secures a Significant OCTG Order with Abu Dhabi National Oil Company (ADNOC) ([finance.yahoo.com](https://finance.yahoo.com/news/vallourec-secures-significant-octg-order-053000206.html))

- 2025-07-08: Vallourec Secures Two OCTG Contracts in Iraq with CNOOC and with PetroChina ([finance.yahoo.com](https://finance.yahoo.com/news/vallourec-secures-two-octg-contracts-053000470.html))

- 2025-09-12: Petrobras Awards Vallourec $1B Multi-Year Contract for Offshore Growth ([finance.yahoo.com](https://finance.yahoo.com/news/petrobras-awards-vallourec-1b-multi-134500814.html))

- 2026-01-12: VALLOUREC WINS A SIGNIFICANT CONTRACT WITH SHELL IN BRAZIL ([finance.yahoo.com](https://finance.yahoo.com/news/vallourec-wins-significant-contract-shell-063000484.html))

- 2026-03-25: VALLOUREC WINS FIVE CONTRACTS   FOR OCTG PRODUCTS IN INDONESIA ([finance.yahoo.com](https://finance.yahoo.com/sectors/energy/articles/vallourec-wins-five-contracts-octg-060000955.html))

- 2026-07-22: VALLOUREC WINS A CONTRACT WITH ALLSEAS FOR ATAPU 2 OFFSHORE PROJECT IN BRAZIL ([finance.yahoo.com](https://finance.yahoo.com/energy/articles/vallourec-wins-contract-allseas-atapu-050000713.html))

### Sales · FY2024–2025

sales -5.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: EUR 3.0B 

- FY2017: EUR 3.7B 

- FY2018: EUR 3.9B 

- FY2019: EUR 4.2B 

- FY2020: EUR 3.2B 

- FY2021: EUR 3.4B 

- FY2022: EUR 4.9B 

- FY2023: EUR 5.1B 

- FY2024: EUR 4.0B 

- FY2025: EUR 3.8B 

### Gross margin · FY2025

gross margin 24.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 8.0% 

- FY2017: 12.1% 

- FY2018: 14.7% 

- FY2019: 17.7% 

- FY2020: 18.8% 

- FY2021: 24.3% 

- FY2022: 22.0% 

- FY2023: 31.2% 

- FY2024: 29.5% 

- FY2025: 24.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in steel; annual sales are EUR 3.8 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:17.477Z); FY2025: revenue 3809000000; grossProfit 933000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VK.PA: Vallourec S.A., through its subsidiaries, provides tubular solutions for the oil and gas, industry, and new energies markets in North America, South America, France, the Middle East, Indonesia, and East Asia. It operates through Tubes and Mine & Forests segments. The company offers seamless tubes for refineries, petrochemical facilities, onshore liquefied natural gas (LNG) facilities, and floating LNG facilities, as well as for floating production, storage, and offloading units; VAM connections; rigid subsea line pipes, onshore rigid line pipes, and pipe coating solutions; and carbon steel and steel alloy tubes, hollow bars, and connections. It also provides assistance in lowering tubes, inspecting connections, and supervising assembly; inventory management; engineering; training; on-site services; preparation for drilling operations; and integrated solutions for the subsea pipelines comprising analysis, coating, insulation, bending, logistics, and project management with digital support solutions. In addition, the company offers tubular products for the geothermal; carbon capture, utilization, and storage; and hydrogen industries. Further, it provides tubes and hollow bars, as well as circular, square, rectangular, and octagonal sections for the manufacture of cranes, construction machinery, agricultural machinery, and hydraulic and gas cylinders; and axle tubes and gearbox applications, motorbike frame components, and suspension and stabilizer tubular parts for heavy and light vehicles. Additionally, the company is involved in the iron ore and charcoal production businesses. It serves oil service, engineering, and construction companies; distributors and industrial equipment manufacturers; and energy companies, and carbon capture and storage specialists, as well as geothermal, green hydrogen, and solar developers. Vallourec S.A. was founded in 1890 and is headquartered in Meudon, France.

### Why customers stay

Margins ranged from 24.5% to 31.2% during 2023–25; it lost 1.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:17.477Z); FY2023: grossProfit / revenue = 31.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:17.477Z); FY2024: grossProfit / revenue = 29.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:17.477Z); FY2025: grossProfit / revenue = 24.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:17.477Z); 10-year return on capital observations [[2016,-0.16648287913735668],[2017,-0.16813301200238007],[2018,-0.0718502589945812],[2019,0.006486467650204907],[2020,-0.12186177181769031],[2021,0.09584665606494337],[2022,-0.03437958360029289],[2023,0.20688147533148685],[2024,0.18877889053939656],[2025,0.17828901885627893]]; median -0.013946557975043992. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 2 of 10 years; bought back EUR 29 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:17.477Z); FY2021: growth capex 0; upkeep 137659000; owner earnings 93723400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:17.477Z); FY2023: growth capex 9158000; upkeep 203428000; owner earnings 484623000. Growth capex / owner earnings = 0.018897163362036055.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:17.477Z); FY2024: growth capex 0; upkeep 167000000; owner earnings 520600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:17.477Z); FY2025: growth capex 0; upkeep 176000000; owner earnings 362800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:17.477Z); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,163105000],[2022,0],[2023,0],[2024,0],[2025,352000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:17.477Z); FY2025: cash repurchases 29000000 EUR.

### Are managers owners

Insiders own 19.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VK.PA SharesStats.PercentInsiders = 19.375999999999998 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 3.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:17.477Z); Ten-year compound average after fade. Initial solved rate -0.05953733453956306. Price 18.38; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -38.93576253927934 → FY2025 1.4415130324221233. Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2016-11: EUR 73.47 per share

- 2016-12: EUR 90.47 per share

- 2017-01: EUR 90.77 per share

- 2017-02: EUR 71.53 per share

- 2017-03: EUR 85.97 per share

- 2017-04: EUR 81.24 per share

- 2017-05: EUR 77.54 per share

- 2017-06: EUR 73.47 per share

- 2017-07: EUR 68.95 per share

- 2017-08: EUR 58.84 per share

- 2017-09: EUR 69.47 per share

- 2017-10: EUR 64.93 per share

- 2017-11: EUR 62.68 per share

- 2017-12: EUR 69.54 per share

- 2018-01: EUR 76.21 per share

- 2018-02: EUR 61.78 per share

- 2018-03: EUR 59.45 per share

- 2018-04: EUR 69.06 per share

- 2018-05: EUR 72.79 per share

- 2018-06: EUR 70.14 per share

- 2018-07: EUR 76.24 per share

- 2018-08: EUR 68.05 per share

- 2018-09: EUR 69.89 per share

- 2018-10: EUR 57.91 per share

- 2018-11: EUR 28.80 per share

- 2018-12: EUR 22.45 per share

- 2019-01: EUR 21.68 per share

- 2019-02: EUR 32.87 per share

- 2019-03: EUR 28.92 per share

- 2019-04: EUR 30.52 per share

- 2019-05: EUR 28.09 per share

- 2019-06: EUR 34.90 per share

- 2019-07: EUR 43.31 per share

- 2019-08: EUR 35.30 per share

- 2019-09: EUR 33.54 per share

- 2019-10: EUR 30.01 per share

- 2019-11: EUR 32.22 per share

- 2019-12: EUR 38.84 per share

- 2020-01: EUR 31.63 per share

- 2020-02: EUR 23.81 per share

- 2020-03: EUR 14.25 per share

- 2020-04: EUR 14.99 per share

- 2020-05: EUR 11.30 per share

- 2020-06: EUR 12.83 per share

- 2020-07: EUR 9.65 per share

- 2020-08: EUR 8.86 per share

- 2020-09: EUR 5.86 per share

- 2020-10: EUR 4.13 per share

- 2020-11: EUR 9.71 per share

- 2020-12: EUR 9.24 per share

- 2021-01: EUR 8.48 per share

- 2021-02: EUR 13.99 per share

- 2021-03: EUR 10.01 per share

- 2021-04: EUR 9.34 per share

- 2021-05: EUR 9.59 per share

- 2021-06: EUR 7.64 per share

- 2021-07: EUR 8.18 per share

- 2021-08: EUR 7.82 per share

- 2021-09: EUR 7.55 per share

- 2021-10: EUR 6.90 per share

- 2021-11: EUR 7.75 per share

- 2021-12: EUR 8.80 per share

- 2022-01: EUR 7.83 per share

- 2022-02: EUR 8.76 per share

- 2022-03: EUR 11.66 per share

- 2022-04: EUR 11.31 per share

- 2022-05: EUR 12.90 per share

- 2022-06: EUR 11.39 per share

- 2022-07: EUR 9.01 per share

- 2022-08: EUR 10.40 per share

- 2022-09: EUR 9.91 per share

- 2022-10: EUR 10.77 per share

- 2022-11: EUR 11.10 per share

- 2022-12: EUR 12.27 per share

- 2023-01: EUR 13.36 per share

- 2023-02: EUR 13.52 per share

- 2023-03: EUR 11.62 per share

- 2023-04: EUR 10.34 per share

- 2023-05: EUR 9.78 per share

- 2023-06: EUR 10.82 per share

- 2023-07: EUR 11.86 per share

- 2023-08: EUR 12.35 per share

- 2023-09: EUR 11.56 per share

- 2023-10: EUR 11.32 per share

- 2023-11: EUR 13.51 per share

- 2023-12: EUR 14.02 per share

- 2024-01: EUR 13.34 per share

- 2024-02: EUR 14.03 per share

- 2024-03: EUR 17.20 per share

- 2024-04: EUR 16.26 per share

- 2024-05: EUR 16.33 per share

- 2024-06: EUR 14.65 per share

- 2024-07: EUR 14.98 per share

- 2024-08: EUR 14.48 per share

- 2024-09: EUR 13.59 per share

- 2024-10: EUR 15.05 per share

- 2024-11: EUR 16.60 per share

- 2024-12: EUR 16.42 per share

- 2025-01: EUR 18.39 per share

- 2025-02: EUR 18.71 per share

- 2025-03: EUR 17.45 per share

- 2025-04: EUR 16.31 per share

- 2025-05: EUR 14.91 per share

- 2025-06: EUR 15.69 per share

- 2025-07: EUR 16.39 per share

- 2025-08: EUR 15.33 per share

- 2025-09: EUR 16.18 per share

- 2025-10: EUR 16.15 per share

- 2025-11: EUR 15.70 per share

- 2025-12: EUR 15.69 per share

- 2026-01: EUR 17.86 per share

- 2026-02: EUR 19.76 per share

- 2026-03: EUR 21.75 per share

- 2026-04: EUR 25.65 per share

- 2026-05: EUR 23.92 per share

- 2026-06: EUR 20.49 per share

- 2026-07: EUR 20.81 per share

- 2026-08: EUR 18.63 per share

- 2026-09: EUR 18.41 per share

- 2026-10: EUR 18.55 per share

## Annual estimated value (EUR per share)

- FY2024: low EUR 8.97 per share, central EUR 9.63 per share, high EUR 10.52 per share

- FY2025: low EUR 19.21 per share, central EUR 21.37 per share, high EUR 24.25 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:42:59.579Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.