The factors in favour of a rise in the Faurecia share price:
Of course, the Faurecia Group has a strong position in the automotive equipment market. In fact, Faurecia is ranked eighth in the global automotive equipment market. It is also number one in most of its businesses.
The specific organisation of the company, with a division into three main business areas, is also of interest. Firstly, there are the emission control technology activities, then the interior systems activities and finally the seat components activities.
Faurecia's potential for growth also depends on its ability to position itself in certain highly promising niches and sectors. The Group's strategy of positioning itself in areas such as component lightening, CO2 emission reduction and modular platform solutions is highly appreciable and perfectly coordinated. As a result, the Faurecia Group has managed to achieve steady growth that outpaces global growth.
Analysts also praise the group's ability to diversify its customer portfolio. The company's most important customer is still the Volkswagen group, which accounts for a quarter of its sales. Next in line are the American manufacturer Ford, the French Peugeot, the other French Renault-Nissan and the American General Motors. Daimler and BMW are also slightly smaller customers of this company.
The Faurecia Group also has an extremely solid strategy based on increasing sales of value-added products to 30% of the Group's overall sales. This strategy also envisages an improved positioning in the SUV sector and a significant increase in margins over the coming years.
Of course, improving the company's international positioning is also a major challenge for Faurecia. The French equipment manufacturer has managed to reduce its sales in Europe to 55% of total sales and to achieve 28% in the United States, with profitability showing real growth in recent years. The group is also well represented in China, an emerging market par excellence, where it has 17 factories and 4 R&D centers.
Finally, shareholders and investors appreciate the fact that the company follows a policy of dividend distribution and has very little debt.