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Deep Value: cash covers more than 100% of the stock price

This company holds roughly $4.0B in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Valeo SE logo

Valeo SE

FR.PA
47
Auto - Parts · Consumer Cyclical
Price
€14.25
+0.14 (+1.03%)
Market Cap
€3.44B
Exchange
Euronext Paris
Winston Score
47
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Weak
Growth
Mixed
Cash Flow
Strong
Stability
Mixed
Valuation
Strong
Dividends
Mixed

Share count rising — dilution

+1.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 244.3M (2021) → 246.9M (2025)

Winston Score History

The full picture

Valeo SE is a French company that makes parts and technology for cars. It supplies automakers like Volkswagen, Stellantis, and Toyota with products such as headlights, windshield wiper systems, parking sensors, electric motors, and thermal management systems. Valeo is one of the largest automotive suppliers in Europe and is headquartered in Paris, France.

Valeo earns money by selling these parts directly to automakers during vehicle production, and also through the aftermarket — selling replacement parts to repair shops and distributors. The company operates globally, with factories and offices across Europe, Asia, and the Americas, generating roughly €20 billion in annual revenue. Its main competitive advantage is its engineering expertise in vehicle electrification and driver-assistance technology, but its biggest risk is that it carries significant debt while facing pressure from slowing electric vehicle adoption, which could delay demand for the new EV-focused components it has heavily invested in developing.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
20.7%
Thin — 20.7% gross margin
Profit after running costs
Operating Margin
4.6%
Thin — 4.6% operating margin
Return on the money invested
ROCE
9.7%
Below par — 9.7% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-2.0%
Shrinking sales (-2.0% YoY)
Profit growth
EPS YoY
+58.7%
Earnings growing fast (+58.7% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
1104%
Turns 1104% of profit into real cash
Spare cash per sale
FCF Margin
7.2%
Modest free cash flow (7.2%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
1.81
Elevated debt (1.81)
Covers its interest
Interest Cover
2.83x
Tight — interest eats into profit (2.8x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit
P/E Ratio (TTM)
17.4x
Fair value — P/E 17.4

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+10.0
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (17.4 → 7.3)

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Dividends

Dividend
Dividend Yield
3.09%
Moderate income — 3.09% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
-21.9%
Dividend cut (-21.9% YoY) — warning sign

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