FAURECIA

Analysis of Faurecia share price

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Among the most popular French stocks among online traders, we find the Faurecia company, which we are going to talk about here in more detail. You will discover useful information about the precise activity of this group, but also useful indications on the analysis of the price of this share historically speaking from the technical analysis of the stock exchange charts.

Latest news

Faurecia's market cap, dividends, sales and earnings in 2020

16/11/2021 - 08h24

In 2020, automotive supplier Faurecia had a difficult first half of the year due to the coronavirus pandemic. However, it improved its performance in the second half.

Elements that can influence the price of this asset:

Analysis N°1

First, given the nature of the group's business, we recommend that you take a closer look at the automotive manufacturing sector. Depending on the economic health of this sector, Faurecia's sales will be more or less important, as will its profitability.

Analysis N°2

We will also be closely monitoring the implementation of long-term supply contracts between Faurecia and these automakers, which sometimes provide stable revenues for several years.

Analysis N°3

Partnerships, takeovers, mergers and other such transactions, especially international ones, are of course important events if you want to anticipate changes in the share price.

Analysis N°4

Finally, we will of course be keeping an eye on Faurecia's competitors and on the distribution and market share trends of each of these players.

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General presentation of Faurecia

The French company Faurecia is one of the country's largest groups in the production of automotive equipment and automotive engineering. More precisely, this group develops, produces and sells equipment to the various players in the automotive industry in France and in the rest of the world, such as seats, interior systems and CO2 emission control technologies. More specifically, the products developed and manufactured by Faurecia can be divided into different categories, which we have classified here according to the proportion of sales they generate:

  • Exhaust systems are Faurecia's largest business, generating more than 39% of the company's sales, particularly in CO2 emission control systems. Faurecia is the international leader in this type of product.
  • Seats account for over 35.3% of Faurecia's sales. The company is also the leader in this product category.
  • Lastly, Faurecia also offers vehicle interior modules, which account for around 25.7% of sales generated, including dashboards and cockpits, doors, door panels, acoustic modules and decorative elements.

The Faurecia Group equips more than a quarter of the vehicles currently produced in the world with at least one of its products. Faurecia operates in many countries and has over 320 production sites. The Group currently employs more than 98,608 people worldwide. The group's sales are mainly generated in Europe with the French and German markets, but also in North America, Asia, South America and the rest of the world.

Faurecia's share price is listed on the French market Euronext Paris and is also included in the calculation of the Next 150 stock market index.

Analysis of Faurecia share price
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The major competitors of Faurecia

Knowing Faurecia's competitors is of course essential if you want to make a good analysis of this stock. That's why we're now offering you a detailed look at the group's main rivals in its sector.

Dongfeng Motor Corporation

First of all, of course, the Chinese company Dongfeng Motor Corporation should be followed with great interest. It specialises in the manufacture of buses, trucks and cars, partly under its own name and partly through various joint ventures with other companies. The group has more than 106,000 employees and is currently China's second largest car manufacturer. The group is also an important supplier to the automotive market.

Stellia Aerospace

 Another direct competitor of Faurecia is of course the Stellia Aerospace group. This French company specializes in the aerospace sector and offers global solutions for aircraft manufacturers and airlines. One of its subsidiaries also specialises in automotive equipment. Stellia Aerospace was created in 2015 through the merger between Aerolia and Sogerma. It offers, among other things, the design and manufacture of aerostructures, pilot seats or even First Class and Business Class passenger seats. It is one of the leaders in these sectors.

Bosch

This German multinational is also in competition with Faurecia and is active as an automotive supplier, as a manufacturer of power tools and household appliances, industrial and construction technology and packaging technology.

Continental AG 

Another opponent to watch is the Continental AG Group which is a German automotive supplier based in Hannover. The group is also known for its tyres but also manufactures automotive parts. It is also partly involved in rubber recycling with its subsidiary ContiTech.

ZF Friedrichshafen

The final competitor to watch closely when considering Faurecia's stock is ZF Friedrichshafen, a German automotive supplier and the world's leading supplier of powertrain and chassis technology. The group currently has 125 different production sites in 26 countries and employs over 71,000 people worldwide. It supplies components and parts to the automotive, construction vehicle, railway, shipbuilding, aerospace and agricultural industries.

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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.

The factors in favour of a drop in the Faurecia share price:

Firstly, like all automotive equipment manufacturers, Faurecia could suffer in the months and years ahead from a decline in global market growth. The Group is highly exposed to the economic health of the automotive industry, where orders vary greatly depending on the level of growth and consumption.

Faurecia is also facing major challenges in the field of connectivity, which is the sector of the future. Competition in this area remains fierce, and it is vital that Faurecia manages to hold its own.

As mentioned above, the Chinese market remains a buoyant, emerging market in which Faurecia must maintain its positioning and increase its presence. However, since 2016, there has been a decline in sales in the country, as well as in South America, which could ultimately weigh on the company's growth.

Finally, it should be noted that Faurecia is considered by some analysts to be a reversal stock par excellence, which represents a real risk when taking bullish long positions. This feeling of risk is reinforced by the fact that the stock is relatively expensive and has been trading at very high levels historically.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What is the Faurecia Group's shareholder structure?

Currently either as of December 31, 2019, Faurecia Group's share capital consists of 138,035,801 shares with a par value of €7 per share. Even today, the French group Peugeot SA is the majority shareholder of Faurecia. However, Faurecia continues to manage its most important activities independently. The rest of the group's capital is held by company employees and board members, with the rest open to investors.

How much has Faurecia invested in recent years?

Of course, the investments made by the Faurecia Group are important to consider when analyzing this stock on the stock market. Also, we know that the company made €1.33 billion in gross investment in research and development in 2019. It also invested €685 million in Capex. Finally, the group also made €235 million of investment in innovation.

How to follow and analyze Faurecia's share price live?

A live chart in real time is of course essential if you plan to trade Faurecia stock. It is therefore recommended that you choose this chart carefully, making sure that it allows the display of different indicators in order to help you carry out a convincing and effective technical analysis of this stock.

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