Forvia (ENXTPA:FRVIA) Valuation Check After Early Redemption of €200m 2028 Notes

Forvia (ENXTPA:FRVIA) just moved to redeem €200 million of its €700 million 3.75% 2028 notes, a proactive debt trim that can lighten future interest costs and subtly reshape the balance sheet.

See our latest analysis for Forvia.

The redemption move comes after Forvia began a strategic review and potential sale of parts of its interiors business. The market has taken notice, with a roughly 52% year to date share price return, but a still muted 3 year total shareholder return suggests that momentum is only now rebuilding after a tough stretch.

If this mix of deleveraging and portfolio reshaping has your attention, it could be worth scanning other auto names through auto manufacturers for fresh ideas beyond Forvia.

With the stock up sharply this year but still nursing steep five year losses and trading below some estimates of intrinsic value, is Forvia an underappreciated turnaround, or has the market already priced in the next leg of growth?

Most Popular Narrative Narrative: 2.9% Undervalued

With Forvia last closing at €13.39 versus a narrative fair value near €13.78, the valuation case rests on a gradual but meaningful earnings rebuild.

The analysts have a consensus price target of €13.781 for Forvia based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of €39.0, and the most bearish reporting a price target of just €8.5.

Read the complete narrative.

Curious how modest headline growth can still justify a higher value, while earnings and margins swing from deep losses to solid profitability, on a low future multiple? Dive in.

Result: Fair Value of €13.78 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained restructuring costs, along with any stumble on planned asset disposals, could quickly dent cash flow progress and undermine the undervaluation thesis.

Find out about the key risks to this Forvia narrative.

Build Your Own Forvia Narrative

If you see the story differently and want to dig into the numbers yourself, you can shape a custom view in minutes: Do it your way.

A great starting point for your Forvia research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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