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Faurecia SE EO Stock Quote

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Morningstar‘s Stock Analysis EO

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Faurecia to Capitalize on Automotive Trends in Autonomous Driving, Electric Mobility, and Cockpit

Richard Hilgert Senior Equity Analyst

Business Strategy and Outlook

| Richard Hilgert |

Faurecia announced the acquisition of Hella on Aug. 14, 2021, and closed the deal on Jan. 30, 2022. The firm now owns a 79.5% stake. The combination appears to us to be complementary in product, customer, and geographic areas. With product lines that directly address several key areas of the auto industry (advanced driver assist systems and autonomous driving, electric mobility, and cockpit), leading market shares, and a global presence, Faurecia is well positioned for growth. Yet, prior to the Hella deal, relatively lower profitability, limited reinvestment, higher financial leverage, and substantial exposure to high-cost countries—which inhibits capacity optimization—had constrained management's progress toward the financial performance that attracts investors. A relatively debt-laden balance sheet and a high fixed cost structure can be detrimental to a company that operates in the highly competitive, capital-intensive, cyclical auto-parts industry.

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Key Statistics EO

Company Profile EO

Business Description

Excluding the Hella acquisition, Faurecia operates in automotive seating, interior systems, cockpit electronics, and emission control technologies. The company has a global presence, with production facilities in 33 countries, but it has about 52% of its facilities located in high-cost countries. Faurecia's five largest customers by percentage of 2021 revenue are Volkswagen at 20%, Stellantis at 18%, Ford at 11%, the Renault-Nissan-Mitsubishi Alliance at 11%, and General Motors at 5%. Geographically, Europe accounted for 45% of 2021 revenue, followed by North America at 24%, China at 20%, and all other regions at 11%.

23-27 avenue des Champs-Pierreux
Nanterre, 92000, France
T +33 172367000
Industry Auto Parts
Most Recent Earnings
Fiscal Year End Dec 31, 2022
Employees 154,171