ENXTPA:EO

Stock Analysis Report

Executive Summary

Faurecia S.E., together with its subsidiaries, manufactures and sells automotive equipment in Europe, North America, South America, Asia, and internationally.

Snowflake

Fundamentals

Good value with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.5%

EO

-0.4%

FR Auto Components

-0.4%

FR Market


1 Year Return

3.5%

EO

7.4%

FR Auto Components

9.5%

FR Market

Return vs Industry: EO underperformed the French Auto Components industry which returned 7.4% over the past year.

Return vs Market: EO underperformed the French Market which returned 9.5% over the past year.


Shareholder returns

EOIndustryMarket
7 Day-3.5%-0.4%-0.4%
30 Day-5.5%-2.1%-0.6%
90 Day6.3%3.1%0.04%
1 Year7.3%3.5%11.4%7.4%13.3%9.5%
3 Year36.1%27.0%-3.0%-10.8%42.5%28.7%
5 Year91.3%73.7%62.3%42.9%71.0%45.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

35.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: EO (€42.65) is trading below our estimate of fair value (€66.54)

Significantly Undervalued: EO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EO is good value based on its PE Ratio (8.3x) compared to the Auto Components industry average (8.3x).

PE vs Market: EO is good value based on its PE Ratio (8.3x) compared to the French market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: EO is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: EO is overvalued based on its PB Ratio (1.5x) compared to the FR Auto Components industry average (1.5x).


Next Steps

Future Growth

How is Faurecia forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EO's forecast earnings growth (11.2% per year) is above the savings rate (0.7%).

Earnings vs Market: EO's earnings (11.2% per year) are forecast to grow slower than the French market (11.5% per year).

High Growth Earnings: EO's earnings are forecast to grow, but not significantly.

Revenue vs Market: EO's revenue (4.5% per year) is forecast to grow faster than the French market (4.5% per year).

High Growth Revenue: EO's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: EO's Return on Equity is forecast to be low in 3 years time (17.9%).


Next Steps

Past Performance

How has Faurecia performed over the past 5 years?

31.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EO's earnings have grown significantly by 31.4% per year over the past 5 years.

Accelerating Growth: EO's earnings growth over the past year (10.3%) is below its 5-year average (31.4% per year).

Earnings vs Industry: EO earnings growth over the past year (10.3%) exceeded the Auto Components industry -8.3%.


Return on Equity

High ROE: EO's Return on Equity (19%) is considered low.


Return on Assets

ROA vs Industry: EO has a higher Return on Assets than the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: EO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Faurecia's financial position?


Financial Position Analysis

Short Term Liabilities: EO's short term assets (€7.3B) do not cover its short term liabilities (€8.3B)

Long Term Liabilities: EO's short term assets (7.3B) exceeds its long term liabilities (3.9B)


Debt to Equity History and Analysis

Debt Level: EO's debt to equity ratio (86.9%) is considered high

Reducing Debt: EO's debt to equity ratio has reduced from 138.9% to 86.9% over the past 5 years.

Debt Coverage: EO's debt is well covered by operating cash flow (46.2%).

Interest Coverage: EO's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: EO's debt is covered by short term assets (assets are 2.038930x debt).


Next Steps

Dividend

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

2.93%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.6%markettop25%4.7%industryaverage3.5%forecastin3Years3.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EO's dividend (2.93%) is higher than the bottom 25% of dividend payers in the French market (1.56%).

High Dividend: EO's dividend (2.93%) is low compared to the top 25% of dividend payers in the French market (4.72%).

Stable Dividend: EO has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: EO's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.3%), EO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EO's dividends in 3 years are forecast to be well covered by earnings (24.4% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Patrick Koller (60yo)

3.3yrs

Tenure

€3,287,488

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.A. since July 1, 2016. Mr. Koller served as the Chief Operating Offi ...


CEO Compensation Analysis

Compensation vs. Market: Patrick's total compensation ($USD3.66M) is about average for companies of similar size in the French market ($USD2.60M).

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


Management Age and Tenure

3.3yrs

Average Tenure

57.5yo

Average Age

Experienced Management: EO's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: EO's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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


Management Team

  • Philippe McAllister (59yo)

    Chief Compliance Officer & Secretary of the Board

    • Tenure: 4.4yrs
  • Kate Philipps (55yo)

    Executive Vice President of Group Communications

    • Tenure: 0yrs
  • Patrick Koller (60yo)

    CEO & Director

    • Tenure: 3.3yrs
    • Compensation: €3.29m
  • Christophe Schmitt (60yo)

    Executive Vice President of Group Operations

    • Tenure: 0.08yrs
  • Jean-Pierre Sounillac (56yo)

    Executive Vice President of Group Human Resources

    • Tenure: 0yrs
  • Michel Alain Favre (61yo)

    Executive VP & Group CFO

    • Tenure: 6.1yrs
  • Marc Maillet (55yo)

    Head of Investor Relations

    • Tenure: 2.3yrs
  • Nolwenn Delaunay

    Executive VP of Legal Department & Secretary of the Board of Directors

    • Tenure: 4.4yrs
  • Thorsten Muschal (52yo)

    Executive Vice President of Sales & Program Management

    • Tenure: 2.5yrs
  • Eric Fohlen-Weill

    Head of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Grégoire Olivier (59yo)

    Director

    • Tenure: 1yrs
  • Michel de Rosen (68yo)

    Independent Chairman

    • Tenure: 2.4yrs
    • Compensation: €304.98k
  • Robert Peugeot (69yo)

    Director

    • Tenure: 12.4yrs
    • Compensation: €50.00k
  • Linda Hasenfratz (53yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: €65.00k
  • Patrick Koller (60yo)

    CEO & Director

    • Tenure: 3.3yrs
    • Compensation: €3.29m
  • Yann Delabrière (69yo)

    Honorary Chairman

    • Tenure: 2.3yrs
  • Penny Herscher (58yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: €62.00k
  • Odile Desforges (69yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: €66.00k
  • Valérie Landon (57yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: €73.00k
  • Olivia Larmaraud (61yo)

    Director

    • Tenure: 3.4yrs

Company Information

Faurecia S.E.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Faurecia S.E.
  • Ticker: EO
  • Exchange: ENXTPA
  • Founded: 1997
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €5.814b
  • Shares outstanding: 136.31m
  • Website: https://www.faurecia.com

Number of Employees


Location

  • Faurecia S.E.
  • 23-27, rue des Champs-Pierreux
  • Nanterre
  • Ile-de-France
  • 92000
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EOENXTPA (Euronext Paris)YesCommon SharesFREURMay 1983
FAUDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 1983
0MGRLSE (London Stock Exchange)YesCommon SharesGBEURMay 1983
FURC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 1983
EOPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURMay 1983
EOSWX (SIX Swiss Exchange)YesCommon SharesCHCHFMay 1983

Biography

Faurecia S.E., together with its subsidiaries, manufactures and sells automotive equipment in Europe, North America, South America, Asia, and internationally. The company operates in three segments: Seatin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:34
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.