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The Street Is Giving Valeo Very Little Credit For Its EV And ADAS Progress

Sep. 21, 2023 2:42 PM ETValeo SE (VLEEY) Stock, VLEEF StockBWA, VTSCY2 Comments
Stephen Simpson profile picture
Stephen Simpson


  • Valeo's shares have underperformed on weak margins and worries about softening auto sales, but the company is outperforming peers and winning significant orders to fuel future growth.
  • The company has seen healthy growth in its electrification and ADAS offerings, with strong demand for its camera and software solutions in particular.
  • Margins are still weak due to R&D investments and launch costs, but management expects improvement as major EV and ADAS projects launch in the coming years.
  • Valeo shares look significantly undervalued even factoring in weak near-term margins, but rerating seems tied to investor confidence that those margins will meaningfully improve in 2025 and beyond.
Chassis of the electric car with powertrain and power connection,electric system of eco car concept.

kynny/iStock via Getty Images

Owning shares in French auto parts supplier Valeo (OTCPK:VLEEY)(OTCPK:VLEEF)(FR.PA) continues to be an exercise in frustration, as the Street continues to focus on short-term challenges in the business at the expense of any sort of holistic or

This article was written by

Stephen Simpson profile picture
Stephen Simpson is a freelance financial writer and investor.Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds).

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BWA, FR.PA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (2)

eeeW profile picture
Good info thanks
Stephen Simpson profile picture
@eeeW You're welcome
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