Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on FAURECIA. We currently have 13 research reports from 1 professional analysts.
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Faurecia delivered what we had expected, and more
09 Feb 17
Consolidated revenue was unchanged at €18.7bn whereas EBIT increased by 17% to €970m. Both of these numbers are almost exactly in line with our projections. Net income of €638m (+72%) is clearly lower than our expected €710m. In spite of this, the dividend will be raised to €0.90 (+38%) vs. our anticipated €0.80.
Increasing its stake in a revolutionary Danish technology
14 Dec 16
Faurecia had a 42% stake in Danish Amminex Emissions Technology A/S, a company founded in 2005. It has developed an Ammonia Storage and Delivery System (ASDS) which, according to the company, almost completely eliminates NOx pollutants (99%) from any diesel engine. Faurecia is now increasing its stake to 91.5%.
Faurecia goes for connected cars
07 Dec 16
The company has entered into exclusive negotiations with Parrot Automotive, a French company involved in infotainment and connectivity solutions for the auto industry. Faurecia’s ultimate aim is to control Parrot fully. The first step will be an initial Enterprise Value investment of €20m which will give it a 20% stake. In addition, it will subscribe to a convertible bond that allows it to increase its stake to 50.01% in 2019. By 2022, Faurecia would be allowed to own all of Parrot’s equity.
Q3 16 revenue missed expectations
14 Oct 16
Consolidated sales fell by 1.9% to €4.24bn in the last quarter thus translating into 9M turnover of €13.77bn, a fall of 0.3%. Management blames the currency movement for this disappointment, which is a good €130m below the consensus median and slightly short of €90m below our expectation.
Profits have skyrocketed in H1 16
26 Jul 16
Consolidated sales increased by 0.5% to €9.53bn but EBIT was up by 28% to €490m and net earnings by 56% to €245m. While the revenue number is slightly lower than our projected €9.68bn, the two profit numbers are clearly higher (€437m and €195m, respectively). As a result of these good profit numbers, management raises its full-year operating margin guidance from ‘4.6-5.0%’ to a ‘minimum of 5.0%’.
Management’s 2018 projections see revenue rising by 6% annually
19 Apr 16
Simultaneously, it sees the EBIT margin reaching 6% in two years’ time. To achieve this, Faurecia intends to ‘expand its technology offer focused on the industry megatrends and on environmental protection’. It intends to ‘rapidly expand those product lines with strong technology content where margins and growth rates are significantly above the group’s average’.
Root & branch review – early margin positive
23 Feb 17
Unilever (ULVR LN, HOLD, T/P 3800p) announced yesterday that it will publish the findings of a root and branch review in April 2017. This is stated as being a result of the recent approach made to them by KraftHeinz (KHC US, N/RO), an offer which quickly lapsed.
A compelling global brand roll-out story
22 Feb 17
We believe that SuperGroup remains one of the most undervalued global brand roll-out stories within the UK retail sector. The stock trades at c20% discount to its UK peers on a 1YF EV/EBITDA basis despite best-in-class revenue growth and profit margins. SuperGroup operates a leading multi-channel proposition, has strong sales momentum across each channel and forecast risk remains on the upside. We initiate coverage on the shares with a buy recommendation and price target of 1898p, implying upside of 27.8% over the prevailing market price.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Rolls out NGP, sees another good year of performlance at constant FX
23 Feb 17
FY update: sales are up +6.9% at constant FX (cons. +6.3%, Q4: +3.3%) and +12.6% at current FX (helped by weaker sterling). Group cigarette volume was up +0.2% (cons. +0.8%, Q4: -1.9%) with a 0.8% decline on an organic basis outperforming the industry, which was down by around 3%. Price mix was above 6%. Global Drive Brand (GDB) portfolio volume was up 7.5% with the market share increasing 100bp (GDB now accounts for 49% of the group’s cigarette volume). The operating profit was up +4.1% at constant FX, and the operating margin contracted by 90bp on reported figures on unfavourable transactional headwinds. The net profit is up 8.3%. The FY dividend is up +10% to 169.4p. For FY17, the group remains focused on the integration of Reynolds (deal expected to close during Q3). The company awaits another good year of growth at constant FX with profit growth skewed to H2.
Carlos Ghosn steps down as Nissan's CEO
23 Feb 17
Renault’s CEO will remain Chairman of Nissan’s Supervisory Board and CEO of both Renault and Mitsubishi, in which Nissan bought a 34% stake in 2016. Carlos Ghosn successfully restructured Nissan late in the last century, but the company has taken over a minority stake in ailing Mitsubishi and, in late 2016, Renault acquired a majority stake in loss-making Russian Avtovaz. As Ghosn’s track record has been so positive, investors believe that he can also restructure these two latest ventures so that both will eventually generate positive earnings. While the Mitsubishi numbers are consolidated at-equity by Nissan and its results at-equity by Renault, the 2016 Avtovaz balance sheet has been consolidated on 31 December 2016, but the P&L will start to burden Renault’s operating earnings from this year onwards. The Russian car producer does not expect positive operating earnings before impairments and restructuring charges before 2018.