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.

Rewards

Trading at 46% below its fair value

Earnings are forecast to grow 11.16% per year

Earnings grew by 10.3% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Good value with proven track record.


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

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


Market Performance


7 Day Return

8.0%

EO

4.9%

FR Auto Components

1.4%

FR Market


1 Year Return

14.8%

EO

6.5%

FR Auto Components

17.0%

FR Market

Return vs Industry: EO exceeded the French Auto Components industry which returned 4.6% over the past year.

Return vs Market: EO underperformed the French Market which returned 17.2% over the past year.


Shareholder returns

EOIndustryMarket
7 Day8.0%4.9%1.4%
30 Day0.6%-1.2%-0.02%
90 Day-2.7%-5.9%3.9%
1 Year19.0%14.8%10.5%6.5%21.1%17.0%
3 Year17.3%9.4%-9.6%-16.8%44.4%30.8%
5 Year25.9%14.3%17.1%3.3%56.1%34.0%

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?

46.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EO (€45.83) is trading below our estimate of fair value (€84.91)

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


Price To Earnings Ratio

PE vs Industry: EO is poor value based on its PE Ratio (8.9x) compared to the Auto Components industry average (8.3x).

PE vs Market: EO is good value based on its PE Ratio (8.9x) compared to the French market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: EO is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: EO is overvalued based on its PB Ratio (1.6x) 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 11 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 (-0.1%).

Earnings vs Market: EO's earnings (11.2% per year) are forecast to grow slower than the French market (13.4% per year).

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

Revenue vs Market: EO's revenue (4.8% per year) is forecast to grow faster than the French market (4.5% per year).

High Growth Revenue: EO's revenue (4.8% 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 (15.7%).


Next Steps

Past Performance

How has Faurecia performed over the past 5 years?

31.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EO has high quality earnings.

Growing Profit Margin: EO's current net profit margins (4%) are higher than last year (3.7%).


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 4.5%.


Return on Equity

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


Return on Assets


Return on Capital Employed


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) exceed 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 2x debt).


Next Steps

Dividend

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

2.73%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.5%markettop25%4.5%industryaverage3.4%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: EO's dividend (2.73%) is higher than the bottom 25% of dividend payers in the French market (1.53%).

High Dividend: EO's dividend (2.73%) is low compared to the top 25% of dividend payers in the French market (4.48%).


Stability and Growth of Payments

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 (25.7% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Patrick Koller (60yo)

3.6yrs

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 ($USD3.56M) is above average for companies of similar size in the French market ($USD2.64M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Koller
CEO & Director3.6yrs€3.29m0.044% 2.7m
Michel Alain Favre
Executive VP & Group CFO6.4yrsno datano data
Christophe Schmitt
Executive Vice President of Group Operations0.4yrsno datano data
Marc Maillet
Head of Investor Relations2.6yrsno datano data
Nolwenn Delaunay
Executive VP of Legal Department & Secretary of the Board of Directors4.8yrsno datano data
Philippe McAllister
Chief Compliance Officer & Secretary of the Board4.8yrsno datano data
Kate Philipps
Executive Vice President of Group Communications0yrsno datano data
Eric Fohlen-Weill
Head of Corporate Communications0yrsno datano data
Thorsten Muschal
Executive Vice President of Sales & Program Management2.8yrsno datano data
Jean-Pierre Sounillac
Executive Vice President of Group Human Resources0yrsno datano data

3.6yrs

Average Tenure

57.5yo

Average Age

Experienced Management: EO's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Koller
CEO & Director3.6yrs€3.29m0.044% 2.7m
Grégoire Olivier
Director1.3yrsno data0.000070% 4.4k
Michel de Rosen
Independent Chairman2.8yrs€304.98k0.0044% 272.4k
Robert Peugeot
Director12.8yrs€50.00k0.00037% 23.1k
Linda Hasenfratz
Independent Director8.8yrs€65.00k0.00037% 23.1k
Yann Delabrière
Honorary Chairman2.7yrsno datano data
Penelope Herscher
Independent Director2.8yrs€62.00k0.00037% 23.1k
Odile Desforges
Independent Director3.8yrs€66.00k0.00037% 23.1k
Valérie Landon
Independent Director2.3yrs€73.00k0.00037% 23.1k
Olivia Larmaraud
Director3.8yrsno data0.000010% 624.7

2.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: EO's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Top Shareholders

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: €6.247b
  • 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
FAUETLX (Eurotlx)YesCommon SharesITEURMay 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: Seating, Interior Systems, and Clean Mobility. The Seating segment designs and manufactures vehicle seats, seating frames, and adjustment mechanisms. The Interior Systems segment designs and manufactures instrument panels, complete cockpits, door panels and modules, acoustic systems, center consoles, and surfaces. The Clean Mobility segment designs and manufactures exhaust systems. The company has a strategic partnership with FAW Group to develop cockpit of the future technologies and sustainable mobility solutions. Faurecia S.E. was founded in 1997 and is headquartered in Nanterre, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 20:36
End of Day Share Price2020/02/17 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.