Forvia: Protecting Itself Against Tariff Impact

2025-05-08 10:30:00 ET

Summary

• Forvia, a French car parts supplier, is improving financially post-Hella acquisition and is expanding rapidly in China, despite slow progress and tariff challenges.
• In Q1 2025, Forvia saw a 2.6% revenue increase, largely from organic growth, with China now contributing 20% of total revenue.
• Despite a net loss in 2024 due to non-recurring expenses, Forvia's underlying adjusted net cash flow was 245M EUR, and it maintains a positive outlook.
• Forvia's stock is undervalued, with improving margins and a stronger balance sheet, making it a potentially attractive investment despite market skepticism.

Introduction

Forvia ( OTCPK:FURCF ) ( OTCPK:FAURY ) is a French car parts supplier with a worldwide presence and increasing sales into China. The company has been trying to clean up its act after the acquisition of Hella, but as I mentioned in my previous article , the financial improvements are quite slow. That being said, there's a noticeable improvement, and as the company is rapidly covering its exposure to US tariffs, Forvia is still worth a closer look. ...

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