Operating Margin

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Price: 16.73 EUR -0.62% Market Closed

Market Cap: 3.9B EUR

15.4%

Declining

by 0.4%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

15.4%

Operating Income

€877.5m

Revenue

€5.7B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

15.4%

Operating Income

€877.5m

Revenue

€5.7B

Peer Comparison

Country		Company	Market Cap	Operating Margin
FR	V	Vallourec SA PAR:VK	4B EUR	Loading...
US		Schlumberger NV NYSE:SLB	69.7B USD	Loading...
US	B	Baker Hughes Co NASDAQ:BKR	50.7B USD	Loading...
US		Halliburton Co NYSE:HAL	27.1B USD	Loading...
LU		Tenaris SA MIL:TEN	18.7B EUR	Loading...
UK		TechnipFMC PLC NYSE:FTI	21.1B USD	Loading...
CN		Yantai Jereh Oilfield Services Group Co Ltd SZSE:002353	87B CNY	Loading...
FR		Technip Energies NV PAR:TE	5.8B EUR	Loading...
US		Nov Inc NYSE:NOV	6.6B USD	Loading...
UK		Subsea 7 SA OSE:SUBC	65B NOK	Loading...
IT		Saipem SpA MIL:SPM	5.3B EUR	Loading...

Market Distribution

Min	-17 526.7%
30th Percentile	1.3%
Median	6.1%
70th Percentile	11.5%
Max	89 700%

Other Profitability Ratios

Vallourec SA
Glance View

Economic Moat

None

Market Cap

3.9B EUR

Industry

N/A

In the bustling world of energy and industrial markets, Vallourec SA stands as a pivotal player driven by its specialty in seamless steel pipes, a seemingly humble product that is, in fact, a keystone of modern infrastructure. Headquartered in Boulogne-Billancourt, France, Vallourec has made its mark by mastering the art of pipe manufacturing for over a century. The heart of its operations lies in crafting high-performance tubular solutions essential for extracting and transporting oil and gas, which are the lifeblood of the global economy. Aside from the energy sector, Vallourec extends its reach into power generation, the construction industry, and even the automotive sector, showcasing its adaptability and broad market engagement. Their manufacturing prowess includes employing cutting-edge technology to produce pipes that can withstand extreme temperatures and pressures, which are crucial for the unforgiving environments found in deep-sea drilling and geothermal projects. The business model of Vallourec is robustly tied to the cyclical nature of its end markets, particularly the oil and gas industry. As global demand and exploration activities fluctuate, so too does the company's revenue stream. Their strategic geographical diversification—spanning production and sales across the Americas, Europe, the Middle East, and Asia—acts as a buffer, providing resilience against localized market downturns. Vallourec's financial narrative is heavily intertwined with their commitment to innovation and sustainability. For instance, developing new steel grades and reducing carbon footprints not only sets them apart from competitors but also aligns with the evolving focus on environmental responsibilities. In essence, Vallourec earns its keep by leveraging its engineering expertise to provide indispensable infrastructure solutions that energize industries worldwide.

View VK Analysis

VK Intrinsic Value

Undervaluation 43%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Vallourec SA
PAR:VK

Peer Comparison

Market Distribution

Other Profitability Ratios

Vallourec SA
Glance View

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Vallourec SA PAR:VK