Quiet Compounding Behind the Wheel
A Tier-1 global automotive supplier with 41% gross margins, 13% FCF yield, and 28% ROE — trading at just 7x earnings.
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Teaser
Tucked within global automotive supply chains, one Spanish manufacturer has quietly compounded earnings and free cash flow for over a decade. With operations spanning five continents and exposure across virtually every major automaker, this Tier-1 supplier converts scale, vertical integration, and margin discipline into consistently high returns. While the sector is cyclical by nature, the business model isn’t: this company generates nearly 18% EBITDA margins, over 7% free cash flow margins, and more than 28% return on equity — all while trading at just 7x earnings and under 9x free cash flow. For long-term investors willing to look past short-term auto sentiment, the disconnect is clear.