ENXTPA:POM

Stock Analysis Report

Compagnie Plastic Omnium

Executive Summary

Compagnie Plastic Omnium SA manufactures intelligent exterior systems, clean energy systems, and automotive modules worldwide.

Rewards

Trading at 74.2% below its fair value

Earnings are forecast to grow 10.64% per year

Earnings grew by 8.3% over the past year

Pays a high and reliable dividend of 2.99%

Risk Analysis

Has a high level of debt

Large one-off items impacting financial results



Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Valeo

ENXTPA:FR

Share Price & News

How has Compagnie Plastic Omnium's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.6%

POM

-0.5%

FR Auto Components

-0.2%

FR Market


1 Year Return

7.7%

POM

16.0%

FR Auto Components

22.9%

FR Market

Return vs Industry: POM underperformed the French Auto Components industry which returned 22.9% over the past year.

Return vs Market: POM underperformed the French Market which returned 24.9% over the past year.


Shareholder returns

POMIndustryMarket
7 Day0.6%-0.5%-0.2%
30 Day0.6%-2.3%0.6%
90 Day2.0%2.7%6.8%
1 Year10.7%7.7%20.3%16.0%27.2%22.9%
3 Year-18.3%-22.9%-7.1%-14.6%42.4%28.8%
5 Year9.3%0.1%25.0%10.2%62.7%39.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Compagnie Plastic Omnium undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: POM (€24.72) is trading below our estimate of fair value (€95.89)

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


Price To Earnings Ratio

PE vs Industry: POM is good value based on its PE Ratio (7.8x) compared to the Auto Components industry average (9.1x).

PE vs Market: POM is good value based on its PE Ratio (7.8x) compared to the French market (18.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: POM is overvalued based on its PB Ratio (1.7x) compared to the FR Auto Components industry average (1.6x).


Next Steps

Future Growth

How is Compagnie Plastic Omnium forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: POM's forecast earnings growth (10.6% per year) is above the savings rate (-0.1%).

Earnings vs Market: POM's earnings (10.6% per year) are forecast to grow slower than the French market (11.7% per year).

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

Revenue vs Market: POM's revenue (5% per year) is forecast to grow faster than the French market (4.7% per year).

High Growth Revenue: POM's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: POM's Return on Equity is forecast to be low in 3 years time (15.1%).


Next Steps

Past Performance

How has Compagnie Plastic Omnium performed over the past 5 years?

18.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: POM has a large one-off gain of €122.2M impacting its June 30 2019 financial results.

Growing Profit Margin: POM's current net profit margins (5.6%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: POM's earnings have grown by 18.8% per year over the past 5 years.

Accelerating Growth: POM's earnings growth over the past year (8.3%) is below its 5-year average (18.8% per year).

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


Return on Equity

High ROE: POM's Return on Equity (21.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Compagnie Plastic Omnium's financial position?


Financial Position Analysis

Short Term Liabilities: POM's short term assets (€3.0B) do not cover its short term liabilities (€3.3B).

Long Term Liabilities: POM's short term assets (€3.0B) exceed its long term liabilities (€1.6B).


Debt to Equity History and Analysis

Debt Level: POM's debt to equity ratio (77.9%) is considered high.

Reducing Debt: POM's debt to equity ratio has reduced from 98.1% to 77.9% over the past 5 years.

Debt Coverage: POM's debt is well covered by operating cash flow (44.3%).

Interest Coverage: POM's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: POM's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Compagnie Plastic Omnium's current dividend yield, its reliability and sustainability?

2.95%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.5%markettop25%4.4%industryaverage3.3%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: POM's dividend (2.99%) is higher than the bottom 25% of dividend payers in the French market (1.46%).

High Dividend: POM's dividend (2.99%) is low compared to the top 25% of dividend payers in the French market (4.43%).


Stability and Growth of Payments

Stable Dividend: POM's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.4%), POM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: POM's dividends in 3 years are forecast to be well covered by earnings (26.4% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Laurent Burelle (70yo)

0yrs

Tenure

€5,114,059

Compensation

Mr. Laurent Burelle has been the Chairman of Compagnie Plastic Omnium SA since July 1, 2001. Mr. Burelle was the Chief Executive Officer of Compagnie Plastic Omnium SA from July 1, 2001 until January 1, 20 ...


CEO Compensation Analysis

Compensation vs Market: Laurent's total compensation ($USD5.69M) is above average for companies of similar size in the French market ($USD1.66M).

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


Management Age and Tenure

3.3yrs

Average Tenure

59yo

Average Age

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


Board Age and Tenure

11.9yrs

Average Tenure

69.5yo

Average Age

Experienced Board: POM's board of directors are seasoned and experienced ( 11.9 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

  • Jean Ciavatti

    Managing Director

    • Laurent Burelle (70yo)

      Chairman

      • Compensation: €5.11m
    • Jean-Michel Szczerba (59yo)

      Co-CEO, COO & Director

      • Tenure: 7.8yrs
      • Compensation: €1.63m
    • Paul Lemarié (72yo)

      COO & Director

      • Tenure: 32.6yrs
      • Compensation: €2.32m
    • Ronan Stephan (59yo)

      Scientific Director

      • Tenure: 3.3yrs
    • Rodolphe Lapillonne

      Senior Executive VP

      • Adeline Mickeler

        Executive Vice President of Communications

        • Félicie Burelle (40yo)

          MD & Director

          • Tenure: 2.8yrs
          • Compensation: €39.79k
        • Valérie Bros

          Corporate Secretary & Executive VP Legal Affairs

          • Tenure: 0.8yrs
        • Laurent Favre

          Chief Executive Officer


          Board Members

          • Bernd Gottschalk (76yo)

            Independent Director

            • Tenure: 10.8yrs
            • Compensation: €33.04k
          • Laurent Burelle (70yo)

            Chairman

            • Compensation: €5.11m
          • Jean Burelle (80yo)

            Honorary Chairman

            • Tenure: 18.5yrs
            • Compensation: €39.79k
          • Jean-Michel Szczerba (59yo)

            Co-CEO, COO & Director

            • Tenure: 7.8yrs
            • Compensation: €1.63m
          • Paul Lemarié (72yo)

            COO & Director

            • Tenure: 32.6yrs
            • Compensation: €2.32m
          • Vincent Labruyère (69yo)

            Director

            • Tenure: 17.7yrs
            • Compensation: €46.19k
          • Éliane Lemarié (74yo)

            Director

            • Tenure: 10.8yrs
            • Compensation: €41.39k
          • Jérôme Gallot (59yo)

            Independent Director

            • Tenure: 13.1yrs
            • Compensation: €46.19k
          • Anne-Marie Couderc (69yo)

            Independent Director

            • Tenure: 9.5yrs
            • Compensation: €46.99k
          • Félicie Burelle (40yo)

            MD & Director

            • Tenure: 2.8yrs
            • Compensation: €39.79k

          Company Information

          Compagnie Plastic Omnium SA's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Compagnie Plastic Omnium SA
          • Ticker: POM
          • Exchange: ENXTPA
          • Founded: 1946
          • Industry: Auto Parts and Equipment
          • Sector: Automobiles
          • Market Cap: €3.665b
          • Shares outstanding: 146.13m
          • Website: https://www.plasticomnium.com

          Number of Employees


          Location

          • Compagnie Plastic Omnium SA
          • 1, allée Pierre-Burelle
          • Levallois Cedex
          • Levallois-Perret
          • Ile-de-France
          • 92593
          • France

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          POMENXTPA (Euronext Paris)YesCommon SharesFREURJan 1992
          EZMDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
          0NW1LSE (London Stock Exchange)YesCommon SharesGBEURJan 1992
          POMPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJan 1992
          PAST.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992
          POMSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJan 1992

          Biography

          Compagnie Plastic Omnium SA manufactures intelligent exterior systems, clean energy systems, and automotive modules worldwide. The company manufactures and sells automotive exterior components and modules, including bumper systems and fascias, body panels and spoilers, rear closure systems, front-end modules, and semi structural and structural parts; and plastic fuel systems and diesel emissions reduction products. The company was founded in 1946 and is headquartered in Levallois-Perret, France. Compagnie Plastic Omnium SA is a subsidiary of Burelle SA. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/22 20:46
          End of Day Share Price2020/01/22 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.