Faurecia (ENXTPA:EO) - Share price, News & Analysis

EO fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	4/6
Past Performance	1/6
Financial Health	3/6
Dividends	2/6

EO Stock Overview

Faurecia S.E., together with its subsidiaries, manufactures and sells automotive equipment in France, Germany, other European countries, North America, South America, Asia, and internationally.

Rewards

Trading at 81.7% below our estimate of its fair value

Earnings are forecast to grow 41.06% per year

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 5.18% is not well covered by earnings or forecast to be in the next 3 years

Highly volatile share price over the past 3 months

Large one-off items impacting financial results

+ 1 more risk

Faurecia Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Faurecia
Historical stock prices
Current Share Price	€19.30
52 Week High	€49.06
52 Week Low	€18.60
Beta	2.01
1 Month Change	-18.36%
3 Month Change	-16.27%
1 Year Change	-55.54%
3 Year Change	-52.71%
5 Year Change	-56.60%
Change since IPO	-3.35%

Recent News & Updates

Jun 12

Faurecia (EPA:EO) Takes On Some Risk With Its Use Of Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

	EO	FR Auto Components	FR Market
7D	-0.3%	-3.5%	3.6%
1Y	-55.5%	-31.6%	-11.3%

Return vs Industry: EO underperformed the French Auto Components industry which returned -32.5% over the past year.

Return vs Market: EO underperformed the French Market which returned -14% over the past year.

Price Volatility

Is EO's price volatile compared to industry and market?
EO volatility
EO Average Weekly Movement	10.6%
Auto Components Industry Average Movement	6.6%
Market Average Movement	5.0%
10% most volatile stocks in FR Market	9.2%
10% least volatile stocks in FR Market	2.9%

Stable Share Price: EO is more volatile than 90% of French stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: EO's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of French stocks.

About the Company

Founded	Employees	CEO	Website
1929	111,140	Patrick Koller	https://www.faurecia.com

Faurecia S.E., together with its subsidiaries, manufactures and sells automotive equipment in France, Germany, other European countries, North America, South America, Asia, and internationally. It operates through Seating, Interiors, Clean Mobility, and Clarion Electronics segments. The Seating segment designs and manufactures vehicle seats, seating frames, covers and foams, and comfort solutions.

Faurecia Fundamentals Summary

How do Faurecia's earnings and revenue compare to its market cap?
EO fundamental statistics
Market Cap	€3.80b
Earnings (TTM)	€17.70m
Revenue (TTM)	€15.62b

214.8x

P/E Ratio

0.2x

P/S Ratio

Is EO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EO income statement (TTM)
Revenue	€15.62b
Cost of Revenue	€13.73b
Gross Profit	€1.88b
Other Expenses	€1.87b
Earnings	€17.70m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 25, 2022

Earnings per share (EPS)	0.09
Gross Margin	12.06%
Net Profit Margin	0.11%
Debt/Equity Ratio	192.7%

How did EO perform over the long term?

See historical performance and comparison

Dividends

5.2%

Current Dividend Yield

779%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is EO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for EO. This is calculated by dividing EO's market cap by their current preferred multiple.
What is EO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€3.80b

EO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	5.8x
PEG Ratio	5.2x

Price to Sales Ratio vs Peers

How does EO's PS Ratio compare to its peers?

EO PS Ratio vs Peers

The above table shows the PS ratio for EO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	0.3x

Forward PS

Price-To-Sales vs Peers: EO is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.3x).

Price to Earnings Ratio vs Industry

How does EO's PE Ratio compare vs other companies in the Auto Components Industry?

Price-To-Sales vs Industry: EO is good value based on its Price-To-Sales Ratio (0.2x) compared to the French Auto Components industry average (0.3x)

Price to Sales Ratio vs Fair Ratio

What is EO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.2x
Fair PS Ratio	0.5x

Price-To-Sales vs Fair Ratio: EO is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).

Share Price vs Fair Value

What is the Fair Price of EO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EO (€19.3) is trading below our estimate of fair value (€105.36)

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

Price to Earnings Growth Ratio

PEG Ratio: EO is poor value based on its PEG Ratio (5.2x)

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Future Growth

How is Faurecia forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

41.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EO's forecast earnings growth (41.1% per year) is above the savings rate (0.3%).

Earnings vs Market: EO's earnings (41.1% per year) are forecast to grow faster than the French market (11.8% per year).

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

Revenue vs Market: EO's revenue (15.7% per year) is forecast to grow faster than the French market (5.9% per year).

High Growth Revenue: EO's revenue (15.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: EO's Return on Equity is forecast to be low in 3 years time (19.9%).

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Past Performance

How has Faurecia performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-36.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EO has a large one-off loss of €261.4M impacting its December 31 2021 financial results.

Growing Profit Margin: EO became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: EO's earnings have declined by 36.4% per year over the past 5 years.

Accelerating Growth: EO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: EO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Auto Components industry (38%).

Return on Equity

High ROE: EO's Return on Equity (3%) is considered low.

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Financial Health

How is Faurecia's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: EO's short term assets (€11.9B) exceed its short term liabilities (€10.2B).

Long Term Liabilities: EO's short term assets (€11.9B) exceed its long term liabilities (€7.7B).

Debt to Equity History and Analysis

Debt Level: EO's net debt to equity ratio (64%) is considered high.

Reducing Debt: EO's debt to equity ratio has increased from 59.8% to 192.7% over the past 5 years.

Debt Coverage: EO's debt is not well covered by operating cash flow (18.9%).

Interest Coverage: EO's interest payments on its debt are well covered by EBIT (3.7x coverage).

Balance Sheet

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Dividend

What is Faurecia current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.18%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EO's dividend (5.18%) is higher than the bottom 25% of dividend payers in the French market (1.82%).

High Dividend: EO's dividend (5.18%) is low compared to the top 25% of dividend payers in the French market (5.47%).

Stability and Growth of Payments

Stable Dividend: EO's dividend payments have been volatile in the past 10 years.

Growing Dividend: EO's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (779.4%), EO's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (102.4%), EO's dividend payments are not well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure

CEO

Patrick Koller (62 yo)

5.92yrs

Tenure

€4,763,803

Compensation

Mr. Patrick Koller has been an Independent Director at Legrand SA since May 30, 2018. He serves as Chief Executive Officer of Faurecia S.E. (formerly known as Faurecia S.A.) since July 1, 2016. Mr. Koller...

CEO Compensation Analysis

Compensation vs Market: Patrick's total compensation ($USD5.03M) is above average for companies of similar size in the French market ($USD1.90M).

Compensation vs Earnings: Patrick's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: EO's management team is seasoned and experienced (5.2 years average tenure).

Board Members

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

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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 been diluted in the past year, with total shares outstanding growing by 43.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31