Forvia (FRVIA) AI Stock Analysis

• Market Cap: €2.32B
• Dividend Yield: 4.24%
• Average Volume (3M): 662.78K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 2.05
• Revenue Growth: -0.90%
• EPS Growth: -324.34%
• Country: FR
• Employees: 149,691
• Sector: Healthcare
• Sector Strength: 45
• Industry: Auto - Parts
• EPS (TTM): -1.37
• Shares Outstanding: 197,089,340
• 10 Day Avg. Volume: 810,814
• 30 Day Avg. Volume: 662,781
• PEG Ratio: 0.05
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 2.76
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €11.24
• Price Target Upside: -4.58% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 60 Neutral
• Price Target: €12.00 ▲(1.87% Upside)

The overall stock score reflects strong technical momentum and cash flow generation, counterbalanced by significant valuation concerns and weak profitability. The positive cash flow is a critical strength, but high leverage and overbought market conditions pose risks. Investors should monitor profitability improvements and market corrections closely.

Forvia Business Overview & Revenue Model

Company Description

Forvia SE, together with its subsidiaries, manufactures and sells automotive technology solutions in France, Germany, other European countries, the Americas, Asia, and internationally. It operates through Seating, Interiors, Clean Mobility, Electronics, Lighting, and Lifecycle Solutions segments. The Seating segment designs and manufactures vehicle seats, seating frames, covers, and comfort solutions, as well as adjustment mechanisms. The Interior segment designs, manufactures, and assembles instrument panels, cockpits, and door panels and modules, as well as center consoles, and sustainable materials. The Clean Mobility segment designs and manufactures exhaust system solutions for passenger and commercial vehicles; fuel cell electric vehicles; and aftertreatment solutions for commercial vehicles, as well as zero-emissions solutions. The Electronics segment designs and manufactures display technologies, driver assistance systems, and cockpit electronics, as well as sensors and actuators, lighting/body electronics, energy management, and HMI/displays. The Lighting segment designs and manufactures lighting technologies. The Lifecycle Solutions segment provides solutions extending the vehicle lifecycle, as well as workshop equipment and special original equipment. The company was formerly known as Faurecia S.E. and changed its name to Forvia SE in June 2023. Forvia SE was incorporated in 1929 and is headquartered in Nanterre, France.

How the Company Makes Money

Forvia generates revenue primarily through the supply of automotive parts and systems to major automobile manufacturers worldwide. Its revenue model includes long-term contracts with OEMs (Original Equipment Manufacturers) for the provision of components that are integral to vehicle production. Key revenue streams include sales from seating systems, interior trim, and electronic components, which are often bundled into comprehensive packages for clients. Additionally, Forvia benefits from partnerships with technology firms to develop smart and sustainable automotive solutions, allowing it to capitalize on the growing demand for electric and autonomous vehicles. The company's focus on innovation, combined with its established relationships with leading automotive brands, plays a crucial role in sustaining its revenue growth.

Forvia Financial Statement Overview

Summary

Forvia demonstrates strengths in cash flow generation, crucial for sustaining operations and investments. However, stagnant revenue and negative net income highlight challenges in profitability. High leverage could be a concern if earnings do not rebound, necessitating improved profit margins and debt management.

Income Statement

Forvia's income statement reveals a mixed performance. The gross profit margin in 2024 was approximately 13.36%, indicating a robust ability to manage production costs relative to revenue. However, the net profit margin was negative at -0.69%, highlighting a net loss for the year. Revenue growth was stagnant from 2023 to 2024, decreasing by approximately 1%. EBIT and EBITDA margins were 4.48% and 8.54% respectively, showing moderate operational efficiency.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 2.59 in 2024, indicating reliance on debt financing. The return on equity was negative due to the net loss, while the equity ratio was 14.18%, suggesting a relatively low proportion of assets financed by equity. The company's high debt levels pose potential risks if profitability does not improve.

Cash Flow

Cash flow analysis presents a positive outlook with operating cash flow exceeding net income, resulting in a strong operating cash flow to net income ratio of 14.21 in 2024. Free cash flow grew by 43.55% from 2023 to 2024, signaling improved cash generation capabilities. The free cash flow to net income ratio was robust, underscoring the company's ability to generate cash despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.18B	26.97B	27.25B	25.46B	15.62B	14.65B
Gross Profit	2.71B	3.60B	3.47B	3.22B	1.88B	1.47B
EBITDA	1.74B	2.30B	2.56B	1.66B	1.39B	876.30M
Net Income	-324.35M	-185.20M	222.20M	-381.80M	-78.80M	-378.80M
Balance Sheet
Total Assets	28.95B	30.27B	30.49B	32.22B	21.67B	18.70B
Cash, Cash Equivalents and Short-Term Investments	4.37B	4.51B	4.28B	4.22B	4.92B	3.09B
Total Debt	10.85B	11.13B	11.29B	12.12B	8.38B	6.20B
Total Liabilities	23.55B	24.20B	24.31B	25.98B	17.86B	14.98B
Stockholders Equity	3.67B	4.29B	4.51B	4.55B	3.43B	3.40B
Cash Flow
Free Cash Flow	1.35B	619.40M	431.20M	321.80M	192.40M	7.50M
Operating Cash Flow	2.04B	2.63B	2.61B	2.46B	1.39B	1.11B
Investing Cash Flow	-1.83B	-1.80B	-1.52B	-6.25B	-1.28B	-1.36B
Financing Cash Flow	-559.80M	-636.40M	-889.00M	3.12B	1.60B	1.13B

Forvia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:FRVIA, the sentiment is Positive. The current price of 11.78 is above the 20-day moving average (MA) of 11.31, above the 50-day MA of 10.96, and above the 200-day MA of 9.16, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 61.19 is Neutral, neither overbought nor oversold. The STOCH value of 90.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:FRVIA.

Forvia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEUG	75 Outperform	1.85B	46.42	0.00%	4.36%	-48.21%	-64.53%
OPM	74 Outperform	1.98B	12.45	8.26%	4.32%	-0.29%	-1.66%
FR	73 Outperform	2.69B	21.59	4.36%	3.79%	-4.16%	-48.55%
FII	72 Outperform	2.17B	34.56	0.00%	0.82%	9.17%	12.78%
AKW	68 Neutral	253.76M	14.44	3.99%	3.14%	-8.58%	-52.18%
FRVIA	60 Neutral	€2.32B	10.39	-11.30%	4.24%	-0.90%	-324.34%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%