Stock Analysis & Valuation FACC AG (1FC.DE)

• Previous Close: €9.47
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	22.20	134
Intrinsic value (DCF)	29.52	212
Graham-Dodd Method	5.41	-43
Graham Formula	3.81	-60

Strategic Investment Analysis

Company Overview

FACC AG is a leading global aerospace company specializing in the development, production, and maintenance of aircraft components and systems. Headquartered in Ried im Innkreis, Austria, FACC operates in three key segments: Aerostructures, Engines and Nacelles, and Cabin Interiors. The company provides critical components such as winglets, spoilers, ailerons, and high-end cabin interiors, serving major aircraft and engine manufacturers worldwide. As a subsidiary of AVIC Cabin System Co., Limited, FACC benefits from strong backing in the aerospace industry. With a market capitalization of approximately €302 million, FACC plays a vital role in the Aerospace & Defense sector, contributing to both commercial and industrial aviation. The company’s expertise in lightweight construction and innovative cabin solutions positions it as a key player in an industry increasingly focused on fuel efficiency and passenger comfort.

Investment Summary

FACC AG presents a mixed investment profile. The company operates in a high-growth aerospace sector, benefiting from increasing global air travel demand and technological advancements in aircraft efficiency. However, its financials reveal modest profitability (net income of €6.36 million in the latest period) and a high beta (1.416), indicating significant volatility relative to the market. The company’s revenue of €884.5 million suggests a solid operational scale, but its total debt of €283.5 million and lack of dividend payments may deter income-focused investors. FACC’s strategic positioning as a supplier to major aerospace manufacturers provides stability, but investors should weigh its exposure to cyclical industry risks and competitive pressures.

Competitive Analysis

FACC AG competes in the highly specialized aerospace components market, where technological expertise and long-term supplier relationships are critical. The company’s competitive advantage lies in its diversified product portfolio across aerostructures, engines, and cabin interiors, allowing it to serve multiple segments of the aviation industry. Its affiliation with AVIC Cabin System provides access to broader resources and markets, particularly in Asia. However, FACC faces intense competition from larger, more diversified aerospace suppliers with greater R&D budgets and global reach. The company’s focus on lightweight materials and cabin innovation aligns with industry trends toward fuel efficiency and passenger experience, but it must continuously invest in R&D to maintain its edge. While FACC has established itself as a reliable Tier 2 supplier, its relatively smaller scale compared to global giants limits its pricing power and margin resilience in downturns.

Major Competitors

• Safran SA (SAF.PA): Safran is a global leader in aerospace propulsion and equipment, with a strong presence in engines and nacelles. Its scale and vertical integration give it cost advantages over FACC, but it focuses more on propulsion systems than cabin interiors. Safran’s R&D capabilities and long-term contracts with Airbus and Boeing make it a formidable competitor.
• Heico Corporation (HEI): Heico specializes in aerospace aftermarket parts and components, competing with FACC in cabin interiors and structural components. Heico’s strong aftermarket presence and acquisition-driven growth strategy provide resilience, but it lacks FACC’s direct OEM relationships with major aircraft manufacturers.
• TransDigm Group (TDG): TransDigm dominates the aerospace components market with a focus on proprietary products and high margins. Its aggressive M&A strategy and pricing power pose a challenge to FACC, but TransDigm’s limited focus on cabin interiors leaves room for FACC in that niche.
• Spirit AeroSystems (SPR): Spirit AeroSystems is a major aerostructures supplier, competing directly with FACC in wing and fuselage components. Spirit’s larger scale and Boeing/Airbus dependencies create both opportunities and risks, whereas FACC’s diversified customer base offers more stability.