FAURECIA (EO.PA) Stock Fundamental Analysis

Europe - Euronext Paris - EPA:EO - FR0000121147 - Common Stock

21.27 EUR

+1.57 (+7.94%)

Last: 6/2/2023, 7:00:00 PM

Fundamental Rating

We assign a fundamental rating of 2 out of 10 to EO. EO was compared to 31 industry peers in the Automobile Components industry. EO has a bad profitability rating. Also its financial health evaluation is rather negative. EO has a decent growth rate and is not valued too expensively.

Quickly go to:

1. Profitability

1.1 Basic Checks

EO had negative earnings in the past year.
EO had a positive operating cash flow in the past year.

1.2 Ratios

The profitability ratios for EO are negative, so there is not much use analyzing them.
The Return On Invested Capital of EO (2.43%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for EO is below the industry average of 6.49%.
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

EO's Operating Margin of 3.52% is in line compared to the rest of the industry. EO outperforms 52.00% of its industry peers.
EO's Operating Margin has declined in the last couple of years.
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 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

EO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, EO has more shares outstanding
Compared to 1 year ago, EO has an improved debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.04, we must say that EO is in the distress zone and 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.
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's Debt to Equity ratio of 2.22 is on the low side compared to the rest of the industry. EO is outperformed by 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.
The Current ratio of EO (0.99) is worse than 64.00% of its industry peers.
A Quick Ratio of 0.79 indicates that EO may have some problems paying its short term obligations.
EO has a Quick ratio of 0.79. This is in the lower half of the industry: EO underperforms 60.00% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.99
Quick Ratio	0.79

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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%.
EO shows a strong growth in Revenue. In the last year, 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.
EO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.53% yearly.

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

EO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 11.73, which indicates a very decent valuation of EO.
Based on the Price/Forward Earnings ratio, EO is valued a bit more expensive than 68.00% of the companies in the same industry.
EO is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	11.73

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, EO is valued a bit cheaper than 64.00% of the companies in the same industry.
76.00% of the companies in the same industry are more expensive than EO, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	13.02
EV/EBITDA	3.83

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as EO's earnings are expected to grow with 100.14% in the coming years.