WBAG:FACC

Stock Analysis Report

Executive Summary

FACC AG engages in the design, development, and manufacture of lightweight aircraft components and systems to the aerospace industry worldwide.

Rewards

Trading at 35.8% below its fair value

Earnings are forecast to grow 24.96% per year

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Profit margins (2.5%) are lower than last year (4.9%)



Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

How has FACC's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FACC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

FACC

-0.8%

AT Aerospace & Defense

1.4%

AT Market


1 Year Return

-19.1%

FACC

24.9%

AT Aerospace & Defense

8.2%

AT Market

Return vs Industry: FACC underperformed the Austrian Aerospace & Defense industry which returned 24.9% over the past year.

Return vs Market: FACC underperformed the Austrian Market which returned 8.2% over the past year.


Shareholder returns

FACCIndustryMarket
7 Day-1.4%-0.8%1.4%
30 Day-4.1%-3.6%-1.5%
90 Day4.0%-2.1%2.2%
1 Year-17.9%-19.1%27.1%24.9%12.1%8.2%
3 Year125.2%120.5%61.3%51.0%37.1%24.7%
5 Year64.6%61.2%137.4%108.0%75.3%50.9%

Price Volatility Vs. Market

How volatile is FACC's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is FACC undervalued compared to its fair value and its price relative to the market?

35.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FACC (€11.73) is trading below our estimate of fair value (€18.28)

Significantly Below Fair Value: FACC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FACC is poor value based on its PE Ratio (27.1x) compared to the Aerospace & Defense industry average (21.6x).

PE vs Market: FACC is poor value based on its PE Ratio (27.1x) compared to the Austrian market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: FACC is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: FACC is good value based on its PB Ratio (1.8x) compared to the XE Aerospace & Defense industry average (2.1x).


Next Steps

Future Growth

How is FACC forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

25.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FACC's forecast earnings growth (25% per year) is above the savings rate (-0.1%).

Earnings vs Market: FACC's earnings (25% per year) are forecast to grow faster than the Austrian market (9.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FACC's revenue (9.6% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: FACC's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FACC's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has FACC performed over the past 5 years?

35.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FACC has a large one-off loss of €7.3M impacting its August 31 2019 financial results.

Growing Profit Margin: FACC's current net profit margins (2.5%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: FACC's earnings have grown significantly by 35.7% per year over the past 5 years.

Accelerating Growth: FACC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FACC had negative earnings growth (-46.7%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (12.7%).


Return on Equity

High ROE: FACC's Return on Equity (6.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is FACC's financial position?


Financial Position Analysis

Short Term Liabilities: FACC's short term assets (€398.2M) exceed its short term liabilities (€270.3M).

Long Term Liabilities: FACC's short term assets (€398.2M) exceed its long term liabilities (€197.9M).


Debt to Equity History and Analysis

Debt Level: FACC's debt to equity ratio (86.6%) is considered high.

Reducing Debt: FACC's debt to equity ratio has increased from 62.7% to 86.6% over the past 5 years.

Debt Coverage: FACC's debt is not well covered by operating cash flow (19.1%).

Interest Coverage: FACC's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet

Inventory Level: FACC has a high level of physical assets or inventory.

Debt Coverage by Assets: FACC's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

What is FACC's current dividend yield, its reliability and sustainability?

1.28%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.7%markettop25%4.2%industryaverage1.7%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: FACC's dividend (1.28%) isn’t notable compared to the bottom 25% of dividend payers in the Austrian market (1.68%).

High Dividend: FACC's dividend (1.28%) is low compared to the top 25% of dividend payers in the Austrian market (4.23%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, FACC has been paying a dividend for less than 10 years.

Growing Dividend: FACC's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.6%), FACC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FACC's dividends in 3 years are forecast to be well covered by earnings (29.2% payout ratio).


Next Steps

Management

What is the CEO of FACC's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Robert Machtlinger (52yo)

3yrs

Tenure

€822,000

Compensation

Mr. Robert Machtlinger has been Chief Executive Officer of FACC AG since February 2017 and serves as its Chairman of Management Board. Mr. Machtlinger and has been Member of Executive Board of FACC AG sinc ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD914.04K) is about average for companies of similar size in the Austrian market ($USD971.04K).

Compensation vs Earnings: Robert's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.1yrs

Average Tenure

52.5yo

Average Age

Experienced Management: FACC's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

56yo

Average Age

Experienced Board: FACC's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Robert Machtlinger (52yo)

    Chairman of Management Board & CEO

    • Tenure: 3yrs
    • Compensation: €822.00k
  • Manuel Taverne

    Director of Investor Relations

    • Tenure: 0yrs
  • Yongsheng Wang (56yo)

    Chief Compliance Officer & Member of the Management Board

    • Tenure: 3.8yrs
    • Compensation: €340.00k
  • Hermann Filsegger

    Head of Design Organization

    • Tenure: 0yrs
  • Aleš Stárek (49yo)

    CFO & Member of Management Board

    • Tenure: 3.2yrs
    • Compensation: €489.00k
  • Andreas Ockel (53yo)

    COO & Member of Management Board

    • Tenure: 2.1yrs
    • Compensation: €574.00k

Board Members

  • Ruguang Geng (62yo)

    Chairman of Supervisory Board

    • Tenure: 5.9yrs
    • Compensation: €40.00k
  • George Maffeo (65yo)

    Member of Supervisory Board

    • Tenure: 3.9yrs
    • Compensation: €27.00k
  • Weixi Gong (57yo)

    Independent Member of Supervisory Board

    • Tenure: 5.6yrs
    • Compensation: €27.00k
  • Ulrike Reiter (59yo)

    Member of Supervisory Board

    • Tenure: 5.6yrs
  • Barbara Huber (54yo)

    Member of Supervisory Board

    • Tenure: 5.6yrs
  • Peter Krohe (64yo)

    Member of Supervisory Board

    • Tenure: 5.6yrs
  • Karin Klee (38yo)

    Member of Supervisory Board

    • Tenure: 1.8yrs
  • Jiajia Dai (41yo)

    Member of Supervisory Board

    • Tenure: 0.7yrs
  • Zhen Pang (55yo)

    Vice Chairman of Supervisory Board

    • Tenure: 1.5yrs
    • Compensation: €2.30k
  • Jing Guo (38yo)

    Member of Supervisory Board

    • Tenure: 1.5yrs
    • Compensation: €2.00k

Company Information

FACC AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FACC AG
  • Ticker: FACC
  • Exchange: WBAG
  • Founded: 1981
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: €537.117m
  • Shares outstanding: 45.79m
  • Website: https://www.facc.com

Number of Employees


Location

  • FACC AG
  • Fischerstrasse 9
  • Ried im Innkreis
  • Upper Austria
  • 4910
  • Austria

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FACCWBAG (Wiener Boerse AG)YesBearer SharesATEURJun 2014
FACCVBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJun 2014
0QW9LSE (London Stock Exchange)YesBearer SharesGBEURJun 2014
1FCDB (Deutsche Boerse AG)YesBearer SharesDEEURJun 2014
1FCXTRA (XETRA Trading Platform)YesBearer SharesDEEURJun 2014
FACCSEP (The Stock Exchange Prague Co. Ltd.)YesBearer SharesCZCZKJun 2014
1FCETLX (Eurotlx)YesBearer SharesITEURJun 2014

Biography

FACC AG engages in the design, development, and manufacture of lightweight aircraft components and systems to the aerospace industry worldwide. It operates through three segments: Aerostructures, Engines & ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 21:52
End of Day Share Price2019/12/12 00:00
Earnings2019/08/31
Annual Earnings2019/02/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.