Stock Analysis & Valuation OPmobility (OPM.PA)

• Previous Close: €16.17
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	9.45	-42
Intrinsic value (DCF)	9.96	-38
Graham-Dodd Method	1.26	-92
Graham Formula	11.41	-29

Strategic Investment Analysis

Company Overview

OPmobility (formerly Compagnie Plastic Omnium SE) is a leading global automotive supplier specializing in intelligent exterior systems, lighting solutions, and electrification technologies. Headquartered in Levallois-Perret, France, the company operates across three core segments: Exterior Systems, Powertrain, and Modules. OPmobility provides innovative solutions such as automotive lighting (headlights, signal lighting), battery systems for electric mobility, hydrogen fuel cell components, and modular assembly services (HBPO). With a strong presence in Europe, North America, and Asia, the company serves automakers with sustainable mobility solutions, including emission reduction systems and high-pressure hydrogen tanks. As the automotive industry shifts toward electrification and lightweight materials, OPmobility is well-positioned with its expertise in clean energy systems and intelligent exterior components. The company’s diversified product portfolio and global manufacturing footprint make it a key player in the auto parts sector, catering to both traditional OEMs and emerging EV manufacturers.

Investment Summary

OPmobility presents a mixed investment case with exposure to high-growth segments like EV battery systems and hydrogen mobility but faces margin pressures from rising R&D costs and competitive pricing in auto parts. The company’s €10.48B revenue (2024) reflects steady demand, though net income of €170M indicates thin margins. A high beta (1.54) suggests volatility tied to cyclical auto demand. Strengths include its technological leadership in lighting and hydrogen storage, while reliance on legacy automakers and €2.36B debt pose risks. The €0.6/share dividend offers a modest yield. Investors should monitor electrification adoption and OPmobility’s ability to scale hydrogen solutions profitably.

Competitive Analysis

OPmobility competes in a fragmented auto parts market with differentiation through integrated electrification and lighting systems. Its Exterior Systems segment rivals pure-play lighting suppliers, while the Powertrain division competes with battery component specialists. The company’s joint venture HBPO (front-end modules) holds a strong position in modular assembly. Key advantages include: (1) Vertical integration in lighting and plastic components, (2) Early-mover expertise in hydrogen storage (high-pressure tanks), and (3) Long-term relationships with European OEMs like Stellantis and Volkswagen. However, it lags behind larger peers in scale for EV batteries compared to Asian suppliers. Pricing pressure from Chinese competitors and dependence on Europe (60% of sales) are vulnerabilities. The 2024 rebranding to OPmobility underscores its pivot to electrification, but execution risks remain in transitioning from combustion-era products.

Major Competitors

• HELLA GmbH & Co. KGaA (HEIA.AS): HELLA is a leader in automotive lighting and electronics, with stronger margins (EBIT ~7%) than OPmobility. Its portfolio includes advanced ADAS sensors, where OPmobility is less prominent. However, HELLA lacks OPmobility’s depth in hydrogen solutions and was acquired by Faurecia (now Forvia), potentially diluting focus.
• Forvia SE (FRVIA.PA): Forvia (merger of Faurecia and HELLA) is a larger rival with €27B sales, dominating seating and interiors. It overlaps with OPmobility in lighting and hydrogen but has greater scale in EV components. Forvia’s high leverage post-merger could limit R&D flexibility compared to OPmobility’s more focused approach.
• Allianz SE (ALV.DE): Continental’s automotive division competes in lighting and battery systems but is divesting some units. Its strength in tires and autonomous tech offsets OPmobility’s exterior focus. Continental’s broader diversification reduces cyclical risk but may slow electrification investments.
• Magna International (MAG): Magna’s complete vehicle assembly and powertrain capabilities outscale OPmobility, especially in North America. However, Magna is less specialized in lighting and hydrogen. OPmobility’s partnership with Chinese EV makers gives it an edge in Asia’s growth markets.
• BYD Electronic (1211.HK): A rising threat in EV components, BYD Electronic leverages parent BYD’s vertical integration. It undercuts OPmobility on battery system costs but lacks sophistication in exterior lighting. Chinese domestic market dominance limits OPmobility’s growth in Asia.