| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 3.88 | -64 |
| Graham Formula | 31.76 | 191 |
Compagnie Plastic Omnium SE (POM.PA) is a leading global automotive supplier specializing in intelligent exterior systems, clean energy solutions, and modular components. Headquartered in Levallois-Perret, France, the company operates across Europe, North America, China, and Asia, serving major automakers with innovative products such as bumpers, tailgate modules, fuel tanks, and hydrogen storage systems. With a strong focus on sustainability, Plastic Omnium is at the forefront of clean mobility, developing hydrogen fuel cells, high-pressure storage tanks, and electric battery solutions. Founded in 1946 and a subsidiary of Burelle SA, the company combines decades of automotive expertise with cutting-edge technology to support the industry's transition toward electrification and emission reduction. Plastic Omnium's diversified product portfolio and global manufacturing footprint position it as a key player in the evolving automotive supply chain, catering to both traditional combustion engines and next-generation vehicles.
Plastic Omnium presents a mixed investment case with strengths in automotive innovation and clean energy but faces cyclical and competitive risks. The company's revenue of €10.3 billion in 2023 and net income of €163 million reflect its scale, though its high beta (1.871) indicates sensitivity to market volatility. Its focus on hydrogen and electrification aligns with industry trends, but reliance on automotive OEMs exposes it to production slowdowns. Positive operating cash flow (€709 million) supports its dividend (€0.39/share), but significant debt (€2.29 billion) and capex (€566 million) require careful monitoring. Investors should weigh its technological leadership against sector-wide margin pressures.
Plastic Omnium competes in the automotive supplier space by differentiating through integrated solutions and clean energy innovation. Its intelligent exterior systems (e.g., radar-equipped bumpers) and hydrogen storage technologies provide a technological edge, particularly as OEMs prioritize lightweight and eco-friendly components. However, the company operates in a highly competitive sector with thin margins, where scale and regional diversification are critical. Its subsidiary structure under Burelle SA offers financial stability but may limit agility compared to independent peers. Plastic Omnium's bet on hydrogen is a long-term differentiator, though adoption rates remain uncertain. The company's global footprint helps mitigate regional demand fluctuations, but reliance on Europe (46% of revenue) and exposure to Chinese market volatility are risks. Its R&D focus on modular systems and partnerships with automakers strengthen its positioning, but pricing pressure from OEMs and raw material costs could erode profitability.