VK FP
Vallourec SA
Industrial/Transportation
05/19/2014
Presented
| Date | 05/16/2014 |
| Price | €38.86 |
| Market Cap | $5.36B |
| Ent Value | $7.55B |
| P/E Ratio | N/A |
| Book Value | €38.98 |
| Div Yield | 3.7% |
| Shares O/S | 126.98M |
| Ave Daily Vol | 790,000 |
| Short Int | N/A |
Current
| Price | €13.93 |
| Market Cap | $3.57B |
| Vallourec SA, through its subsidiaries, provides tubular solutions primarily for the energy markets and other industrial applications in Europe, North America, South America, Asia, and internationally. It operates through Seamless Tubes and Specialty Products segments. The company produces hot-rolled seamless carbon and alloy steel tubes for the oil and gas, power generation, chemicals and petrochemicals, automotive and mechanical engineering industries, etc, as well as produces stainless steel and titanium tubes. It offers tubes comprising casing, tubing, and accessories for oil and gas well equipment; well-drilling products, including drill pipes, bottom-hole assemblies, and VAM connections and accessories for drill strings; and offshore and onshore line pipes and accessories, as well as tubes for umbilicals. The company also provides hydrocarbon processing tubes; steam tubes and pipes for power plants; and titanium and stainless steel welded tubes used in nuclear and conventional power plants, high-pressure and low-pressure heaters, as well as in moisture separator steam reheaters; and steam generator tubes for nuclear power plants. In addition, it offers hot-rolled pipes and hollow sections used in various applications, including drilling and other platforms, bridges, buildings and other roofed structures, cranes, agricultural and industrial machinery, mechanical components and systems, mining, and offshore projects. Further, the company provides coating and welding services for offshore and onshore projects. Vallourec SA was founded in 1899 and is headquartered in Boulogne-Billancourt, France. |
Publicly traded companies mentioned herein: Vallourec SA (VK FP), Tenaris SA (TS), Nippon Steel & Sumitomo Metal Corporation (5401 JP), Petroleo Brasileiro SA (PETR4 BZ)
Highlights
The presenter is short shares of Vallourec (VK), a company he has followed for years. He explained the structure of the niche industry in which VK operates, and the specialized nature of their seamless tube and why it’s needed in the market, and said, “They actually run a great business.” Tenaris, a segment of Sumitomo and VK essentially own the market (it is an oligopoly). When supply was tight in 2007/2008 VK was realizing profits of $4k/ ton (EBITDA), said the presenter) and its stock price ran up to the mid-80s by the summer of 2011. Since then, it has been cut in half as all of the suppliers announced capacity expansion projects.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.