VLOWY - Vallourec: Completing Its Turnaround Trades At An 11% FCF Yield
2024-04-01 10:30:00 ET
Summary
- Vallourec's 2023 performance exceeded expectations, with increased margins and a 67% jump in EBITDA compared to 2022.
- The company's cash flow improved, with a strong free cash flow result and a 50% decrease in net debt.
- ArcelorMittal's acquisition of a stake in Vallourec validates the company's turnaround and suggests potential future plans for expansion.
Introduction
Just over a year ago, I discussed Vallourec ( VLOUF ) ( VLOWY ) in my service as I thought the French company represented an excellent turnaround story that was still completely flying under the radar. As I explained in that February 2023 article, Vallourec has a very long history, as the company was created over 100 years ago after a patent was filed in 1886 to produce seamless steel tubes using a rolling mill. The seamless tube industry gained pace but in 1930 several producers were forced to combine, and the company was named after the location of the three main production plants back in the day: VAL -enciennes, LOU -vroil and REC -quignies....
Vallourec: Completing Its Turnaround, Trades At An 11% FCF Yield