FAURECIA (EO.PA)
FR0000121147 - Common Stock
We assign a fundamental rating of 3 out of 10 to EO. EO was compared to 27 industry peers in the Automobile Components industry. EO may be in some trouble as it scores bad on both profitability and health. EO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year EO has reported negative net income.
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.
1.2 Ratios
EO has negative profitability rations, so we won't be analyzing them here.
EO's Return On Invested Capital of 2.43% is in line compared to the rest of the industry. EO outperforms 44.00% of its industry peers.
EO had an Average Return On Invested Capital over the past 3 years of 2.37%. This is below the industry average of 6.39%.
The 3 year average ROIC (2.37%) for EO is below the current ROIC(2.43%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
With a Operating Margin value of 3.52%, EO perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
In the last couple of years the Operating Margin of EO has declined.
With a Gross Margin value of 12.66%, EO is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of EO has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EO is destroying value.
Compared to 1 year ago, EO has more shares outstanding
EO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EO has been reduced compared to a year ago.
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's Altman-Z score of 1.04 is on the low side compared to the rest of the industry. EO is outperformed by 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.
Looking at the Debt to FCF ratio, with a value of 37.66, EO is in line with its industry, 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 Debt to Equity ratio of 2.22. This is in the lower half of the industry: EO underperforms 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 37.66 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.36
WACC6.82%
2.3 Liquidity
A Current Ratio of 0.99 indicates that EO may have some problems paying its short term obligations.
EO has a Current ratio of 0.99. This is in the lower half of the industry: EO underperforms 64.00% of its industry peers.
EO has a Quick 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 has a worse Quick ratio (0.79) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
EO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -331.06%.
Looking at the last year, EO shows a very strong growth in Revenue. The Revenue has grown by 63.01%.
The Revenue has been growing by 8.46% on average over the past years. This is quite good.
EPS 1Y (TTM)-331.06%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q70%
Revenue 1Y (TTM)63.01%
Revenue growth 3Y12.74%
Revenue growth 5Y8.46%
Revenue growth Q2Q76.57%
3.2 Future
The Earnings Per Share is expected to grow by 75.00% on average over the next years. This is a very strong growth
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
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for EO. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 11.73, the valuation of EO can be described as very reasonable.
EO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. EO is more expensive than 68.00% of the companies in the same industry.
EO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EO indicates a somewhat cheap valuation: EO is cheaper than 64.00% of the companies listed in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.02 | ||
| EV/EBITDA | 3.83 |
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%
5. Dividend
5.1 Amount
EO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.73 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.52% | ||
| PM (TTM) | N/A | ||
| GM | 12.66% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-331.06%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y343.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)63.01%
Revenue growth 3Y12.74%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y