Forvia Earnings: 2023 Organic Growth Solid but Margin Dinged by UAW Strike, Other Headwinds

No-moat-rated Forvia reported full-year 2023 earnings per share before discontinued operations of EUR 1.15, well below the FactSet consensus of EUR 1.63—but EUR 3.35 better than the year-ago loss of EUR 2.20. The United Auto Workers strike, the continued but lessening microchip constraints, geopolitical turmoil, inflationary cost pressures, and problems with a North America seating program contributed to the shortfall. The French auto parts vendor discloses only revenue in the first and third quarters while financial statements are published for half- and full-year results. We raised our fair value estimate to EUR 49 from EUR 48 due to the time value of money. The 5-star-rated shares of Forvia currently trade at a compelling 74% discount to our new fair value.