The Scepticist
Small-cap, special situations, long only, oil & gas

PSA Group: An Oiled Free Cash Flow Engine With The Potential To Double

A. Company description

PSA Group (OTCPK:PEUGF, OTCPK:PUGOY, OTC:PUGOF) "Peugeot Anonyme" was born in 1965 and today is an automotive holding with a revenue of 55 billion euros. Its most important divisions:

  1. Peugeot Automotive (Brands: Peugeot, Citroen, DS)
  2. Faurecia (Automotive supplier)
  3. PSA Banque (Consumer savings bank)

B. Investment summary

Peugeot is a turnaround story with huge potential. After several years of dark red numbers (2011-2013), the company has made huge improvements in profitability over the last years. After a rigorous focus on cost cutting and pricing power, Peugeot finally turned back into being a cash machine. Not surprisingly after years of crisis, investors are still reluctant towards the company. The valuation of Peugeot can only be described

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