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FAURECIA (EO.PA) Stock Fundamental Analysis

EPA:EO - Euronext Paris - Matif - FR0000121147 - Common Stock - Currency: EUR

21.27  +1.57 (+7.94%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to EO. EO was compared to 29 industry peers in the Automobile Components industry. Both the profitability and financial health of EO have multiple concerns. EO has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

EO had negative earnings in the past year.
In the past year EO had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: EO reported negative net income in multiple years.
EO had a positive operating cash flow in each of the past 5 years.
EO.PA Yearly Net Income VS EBIT VS OCF VS FCFEO.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 500M 1B 1.5B 2B

1.2 Ratios

The profitability ratios for EO are negative, so there is not much use analyzing them.
EO has a Return On Invested Capital (2.43%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EO is below the industry average of 6.41%.
The last Return On Invested Capital (2.43%) for EO is above the 3 year average (2.37%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA N/A
ROE N/A
ROIC 2.43%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.37%
ROIC(5y)4.49%
EO.PA Yearly ROA, ROE, ROICEO.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 10 -10 20

1.3 Margins

The Operating Margin of EO (3.52%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of EO has declined.
EO's Gross Margin of 12.66% is on the low side compared to the rest of the industry. EO is outperformed by 76.00% of its industry peers.
In the last couple of years the Gross Margin of EO has remained more or less at the same level.
Industry RankSector Rank
OM 3.52%
PM (TTM) N/A
GM 12.66%
OM growth 3Y-20.22%
OM growth 5Y-12.38%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.27%
GM growth 5Y0.28%
EO.PA Yearly Profit, Operating, Gross MarginsEO.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 5 10

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1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EO is destroying value.
The number of shares outstanding for EO has been increased compared to 1 year ago.
EO has a better debt/assets ratio than last year.
EO.PA Yearly Shares OutstandingEO.PA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M
EO.PA Yearly Total Debt VS Total AssetsEO.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 10B 20B 30B

2.2 Solvency

EO has an Altman-Z score of 1.04. This is a bad value and indicates that EO is not financially healthy and even has some risk of bankruptcy.
EO has a Altman-Z score of 1.04. This is amonst the worse of the industry: EO underperforms 84.00% of its industry peers.
EO has a debt to FCF ratio of 37.66. This is a negative value and a sign of low solvency as EO would need 37.66 years to pay back of all of its debts.
With a Debt to FCF ratio value of 37.66, EO perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
EO has a Debt/Equity ratio of 2.22. This is a high value indicating a heavy dependency on external financing.
EO has a worse Debt to Equity ratio (2.22) than 76.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.22
Debt/FCF 37.66
Altman-Z 1.04
ROIC/WACC0.36
WACC6.82%
EO.PA Yearly LT Debt VS Equity VS FCFEO.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

2.3 Liquidity

EO has a Current Ratio of 0.99. This is a bad value and indicates that EO is not financially healthy enough and could expect problems in meeting its short term obligations.
EO's Current ratio of 0.99 is on the low side compared to the rest of the industry. EO is outperformed by 64.00% of its industry peers.
A Quick Ratio of 0.79 indicates that EO may have some problems paying its short term obligations.
With a Quick ratio value of 0.79, EO is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.99
Quick Ratio 0.79
EO.PA Yearly Current Assets VS Current LiabilitesEO.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 5B 10B

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4

3. Growth

3.1 Past

The earnings per share for EO have decreased strongly by -331.06% in the last year.
Looking at the last year, EO shows a very strong growth in Revenue. The Revenue has grown by 63.01%.
Measured over the past years, EO shows a quite strong growth in Revenue. The Revenue has been growing by 8.46% on average per year.
EPS 1Y (TTM)-331.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%70%
Revenue 1Y (TTM)63.01%
Revenue growth 3Y12.74%
Revenue growth 5Y8.46%
Sales Q2Q%76.57%

3.2 Future

Based on estimates for the next years, EO will show a very strong growth in Earnings Per Share. The EPS will grow by 75.00% on average per year.
Based on estimates for the next years, EO will show a small growth in Revenue. The Revenue will grow by 2.53% on average per year.
EPS Next Y343.19%
EPS Next 2Y155.75%
EPS Next 3Y100.14%
EPS Next 5Y75%
Revenue Next Year7.74%
Revenue Next 2Y6.95%
Revenue Next 3Y7.23%
Revenue Next 5Y2.53%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
EO.PA Yearly Revenue VS EstimatesEO.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10B 20B 30B
EO.PA Yearly EPS VS EstimatesEO.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 -2 4

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for EO. In the last year negative earnings were reported.
EO is valuated reasonably with a Price/Forward Earnings ratio of 11.73.
Based on the Price/Forward Earnings ratio, EO is valued a bit more expensive than the industry average as 68.00% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 21.38. EO is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 11.73
EO.PA Price Earnings VS Forward Price EarningsEO.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20

4.2 Price Multiples

64.00% of the companies in the same industry are more expensive than EO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, EO is valued a bit cheaper than 76.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.02
EV/EBITDA 3.83
EO.PA Per share dataEO.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

4.3 Compensation for Growth

EO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EO's earnings are expected to grow with 100.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y155.75%
EPS Next 3Y100.14%

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0

5. Dividend

5.1 Amount

EO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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FAURECIA

EPA:EO (6/2/2023, 7:00:00 PM)

21.27

+1.57 (+7.94%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.19B
Analysts82.31
Price Target26.31 (23.7%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-1.03%
Max Revenue beat(2)-1.03%
Revenue beat(4)1
Avg Revenue beat(4)2.26%
Min Revenue beat(4)-1.03%
Max Revenue beat(4)5.55%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.03%
PT rev (3m)7.74%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-14.32%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.51%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 11.73
P/S 0.16
P/FCF 13.02
P/OCF 1.7
P/B 0.92
P/tB N/A
EV/EBITDA 3.83
EPS(TTM)-2.2
EYN/A
EPS(NY)1.81
Fwd EY8.53%
FCF(TTM)1.63
FCFY7.68%
OCF(TTM)12.51
OCFY58.84%
SpS129.27
BVpS23.09
TBVpS-26.92
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA N/A
ROE N/A
ROCE N/A
ROIC 2.43%
ROICexc 3.16%
ROICexgc 10.45%
OM 3.52%
PM (TTM) N/A
GM 12.66%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.37%
ROIC(5y)4.49%
ROICexc(3y)3.52%
ROICexc(5y)6.36%
ROICexgc(3y)11.08%
ROICexgc(5y)20.07%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-24.77%
ROICexcg growth 5Y-23.78%
ROICexc growth 3Y-28.16%
ROICexc growth 5Y-25.19%
OM growth 3Y-20.22%
OM growth 5Y-12.38%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.27%
GM growth 5Y0.28%
F-Score5
Asset Turnover0.79
Health
Industry RankSector Rank
Debt/Equity 2.22
Debt/FCF 37.66
Debt/EBITDA 4.34
Cap/Depr 112.96%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.99
Quick Ratio 0.79
Altman-Z 1.04
F-Score5
WACC6.82%
ROIC/WACC0.36
Cap/Depr(3y)98.41%
Cap/Depr(5y)112.64%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-331.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%70%
EPS Next Y343.19%
EPS Next 2Y155.75%
EPS Next 3Y100.14%
EPS Next 5Y75%
Revenue 1Y (TTM)63.01%
Revenue growth 3Y12.74%
Revenue growth 5Y8.46%
Sales Q2Q%76.57%
Revenue Next Year7.74%
Revenue Next 2Y6.95%
Revenue Next 3Y7.23%
Revenue Next 5Y2.53%
EBIT growth 1Y18.4%
EBIT growth 3Y-10.06%
EBIT growth 5Y-4.96%
EBIT Next Year252.99%
EBIT Next 3Y62.97%
EBIT Next 5Y41.22%
FCF growth 1Y62.61%
FCF growth 3Y-8.24%
FCF growth 5Y-4.5%
OCF growth 1Y76.36%
OCF growth 3Y11.4%
OCF growth 5Y8.85%