Forvia (FRVIA) AI Stock Analysis

• Market Cap: €2.83B
• Dividend Yield: 3.79%
• Average Volume (3M): 740.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: -0.90%
• EPS Growth: -324.34%
• Country: FR
• Employees: 149,691
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -1.37
• Shares Outstanding: 197,089,340
• 10 Day Avg. Volume: 700,372
• 30 Day Avg. Volume: 740,499
• 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: €14.30
• Price Target Upside: -0.56% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: €13.00 ▼(-9.60% Downside)

Forvia's overall stock score is driven by strong cash flow generation and positive technical indicators. However, challenges in profitability and high leverage weigh on the score. The valuation is mixed, with a negative P/E ratio but a reasonable dividend yield.

Positive Factors

Cash Flow Generation

Strong cash flow generation allows Forvia to sustain operations and fund investments, enhancing financial stability and growth potential.

Sustainability Focus

Commitment to sustainability and innovation positions Forvia favorably in the eco-friendly automotive market, driving long-term demand and client retention.

Free Cash Flow Growth

Significant growth in free cash flow indicates improved cash generation capabilities, supporting future investments and debt repayment.

Negative Factors

High Leverage

High reliance on debt financing could pose risks if profitability does not improve, potentially impacting financial flexibility and stability.

Negative Net Income

Negative net income reflects profitability challenges, which could hinder reinvestment in growth and innovation if not addressed.

Stagnant Revenue Growth

Stagnant revenue growth suggests difficulties in expanding market share or product adoption, potentially limiting future earnings potential.

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 through the sale of its automotive products and services. Key revenue streams include the manufacturing and supply of seating systems and interior components to major automotive manufacturers worldwide. The company benefits from long-term contracts and partnerships with leading car makers, ensuring a steady demand for its products. Additionally, Forvia invests in research and development to create innovative solutions that comply with increasingly stringent environmental regulations, which helps to attract new clients and retain existing ones. The company's focus on sustainability also positions it favorably in a market that is shifting towards eco-friendly automotive solutions, contributing to its overall earnings.

Forvia Financial Statement Overview

Summary

Forvia demonstrates strengths in cash flow generation, crucial for sustaining operations and funding investments. However, stagnant revenue and negative net income highlight challenges in profitability. High leverage could be a concern if earnings do not rebound. The company should focus on improving profit margins and managing debt levels to enhance financial stability.

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: 14.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 14.38 is above the 20-day moving average (MA) of 13.51, above the 50-day MA of 12.32, and above the 200-day MA of 10.15, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 72.63 is Negative, neither overbought nor oversold. The STOCH value of 83.59 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
FII	73 Outperform	€2.61B	41.64	6.49%	0.74%	9.17%	12.78%
OPM	67 Neutral	€2.37B	14.89	7.91%	3.86%	-0.29%	-1.66%
AKW	65 Neutral	€213.90M	12.19	2.91%	7.43%	-8.58%	-52.26%
PEUG	64 Neutral	€1.93B	48.54	0.83%	4.29%	-48.21%	-64.53%
FRVIA	63 Neutral	€2.83B	-6.16	-11.30%	3.79%	-0.90%	-324.34%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FR	59 Neutral	€2.96B	23.64	3.67%	3.66%	-4.16%	-48.55%