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Aptiv PLC (APTV)
NYSE:APTV
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Aptiv
(NYSE:APTV)76Outperform
Positive Factors
Financial Performance
Record 4Q bookings, EPS, and cash flow allowing for accelerated debt paydown.
Growth Strategy
Aptiv announced its intention to spin off its Electrical Distribution Systems business, creating two separate, publicly-traded companies, allowing shareholders to more directly assign value to each segment.
Negative Factors
Supply Chain Risks
Tariffs on major clients VW and Stellantis pose significant supply chain risks for APTV, with revenue impact anticipated.
Aptiv (APTV) vs. S&P 500 (SPY)
Market Cap
$14.41B
Dividend YieldN/A
Average Volume (3M)3.47M
Price to Earnings (P/E)9.1
Beta (1Y)1.00
Revenue Growth-1.69%
EPS Growth-33.56%
CountryUS
Employees141,000
SectorConsumer Cyclical
Sector Strength53
IndustryVehicles
Share Statistics
EPS (TTM)6.88
Shares Outstanding229,446,370
10 Day Avg. Volume3,497,217
30 Day Avg. Volume3,473,940
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)N/A
Price to Sales (P/S)0.75
Price to Cash Flow (P/CF)3.50
P/FCF Ratio3.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$79.54Price Target Upside22.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
Aptiv Business Overview & Revenue Model
Company DescriptionIreland-based Aptiv Plc designs, develops, manufactures and sells vehicle components. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through the following business segments: Signal and Power Solutions, Advanced Safety and User Experience.
How the Company Makes MoneyAptiv makes money primarily through the design, manufacture, and sale of its automotive technology products and solutions. The Signal and Power Solutions segment generates revenue from the sale of electrical architectures, components, and systems that manage power and data distribution throughout vehicles. The Advanced Safety and User Experience segment earns income through the development and sale of advanced driver assistance systems, user interfaces, and connectivity solutions that improve vehicle safety and enhance the driving experience. Aptiv's revenue is bolstered by strong partnerships with leading global automakers and continued investment in research and development to stay at the forefront of automotive technology innovation.
Aptiv Financial Statement Overview
Summary
Aptiv showcases a solid financial performance with strong cash flow generation and efficient operational margins. Despite a decrease in net income, the company maintains a balance between growth and stability. The balance sheet is healthy, with manageable leverage and a strong equity position.Income Statement
Aptiv's income statement shows a solid performance with a gross profit margin of 17.8% and a net profit margin of 9.1% in the TTM. The revenue growth rate from 2022 to 2023 was 14.6%, indicating a strong upward trend. However, the net profit decreased significantly compared to 2023, impacting the overall profitability. The EBIT and EBITDA margins are healthy at 9.4% and 13.9% respectively, demonstrating operational efficiency.75
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.0, indicating moderate leverage. The return on equity (ROE) is a robust 20.3% in the TTM, suggesting effective use of equity. The equity ratio stands at 56.2%, pointing to a well-balanced capital structure. However, the decrease in total assets and stockholders' equity compared to 2023 suggests some contraction in the company's financial base.70
Positive
Cash Flow
Aptiv's cash flow statement is strong, with a free cash flow growth rate of 63.2% from 2023 to the TTM period. The operating cash flow to net income ratio is 1.37, indicating good cash generation relative to net income. The free cash flow to net income ratio is 0.90, showing efficient cash management. The company has demonstrated the ability to generate substantial cash flow from operations despite a decrease in net income.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 19.71B | 20.05B | 17.49B | 15.62B | 13.07B | Gross Profit |
| 3.71B | 3.46B | 2.63B | 2.44B | 1.94B | EBIT |
| 1.84B | 1.56B | 1.26B | 1.19B | 2.12B | EBITDA |
| 1.84B | 2.53B | 1.97B | 1.83B | 2.88B | Net Income Common Stockholders |
| 1.79B | 2.94B | 869.00M | 809.00M | 1.80B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.57B | 1.64B | 1.53B | 3.14B | 2.82B | Total Assets |
| 23.46B | 24.43B | 21.90B | 18.01B | 17.52B | Total Debt |
| 921.00M | 6.79B | 6.85B | 4.37B | 4.40B | Net Debt |
| -652.00M | 5.15B | 5.32B | 1.23B | 1.58B | Total Liabilities |
| 14.37B | 12.58B | 12.79B | 9.45B | 9.42B | Stockholders Equity |
| 8.80B | 11.55B | 8.83B | 8.35B | 7.91B |
| Cash Flow | Free Cash Flow | |||
| 1.62B | 990.00M | 419.00M | 611.00M | 829.00M | Operating Cash Flow |
| 2.45B | 1.90B | 1.26B | 1.22B | 1.41B | Investing Cash Flow |
| -507.00M | -1.00B | -5.17B | -729.00M | -626.00M | Financing Cash Flow |
| -1.97B | -807.00M | 2.35B | -191.00M | 1.61B |
Aptiv Technical Analysis
Positive
65.09
Price Trends
62.82
Positive
61.63
Positive
66.95
Negative
Market Momentum
0.57
Positive
53.11
Neutral
28.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APTV, the sentiment is Positive. The current price of 65.09 is below the 20-day moving average (MA) of 65.31, above the 50-day MA of 62.82, and below the 200-day MA of 66.95, indicating a neutral trend. The MACD of 0.57 indicates Positive momentum. The RSI at 53.11 is Neutral, neither overbought nor oversold. The STOCH value of 28.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APTV.
Aptiv Risk Analysis
Aptiv disclosed 37 risk factors in its most recent earnings report. Aptiv reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aptiv Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $480.65M | 2.97 | 11.02% | 9.21% | -11.02% | -51.66% | |
77 Outperform | $2.25B | 8.82 | 24.17% | ― | -2.23% | -42.94% | |
76 Outperform | $14.41B | 9.13 | 17.57% | ― | -1.69% | -33.56% | |
74 Outperform | $7.19B | 11.51 | 26.69% | 2.96% | -0.80% | 39.95% | |
71 Outperform | $4.79B | 9.95 | 17.69% | 3.45% | -0.70% | -7.27% | |
62 Neutral | $6.15B | 18.70 | 6.11% | 1.53% | -11.10% | -46.32% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% |
* Consumer Cyclical Sector Average
Performance Comparison
APTV
Aptiv
65.09
-13.04
-16.69%
ALV
Autoliv
98.01
-17.05
-14.82%
BWA
BorgWarner
29.19
-2.33
-7.39%
LEA
Lear
94.11
-42.17
-30.94%
TEN
Tsakos Energy Navigation
15.91
-6.06
-27.58%
VC
Visteon
86.55
-29.42
-25.37%
Aptiv Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: 6.23% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
Aptiv reported strong new business bookings and growth in earnings per share, highlighting the strength of its technology portfolio and strategic initiatives. However, challenges in revenue growth due to production weaknesses, particularly in electrified vehicle platforms, and concerns over geopolitical uncertainties contributed to a balanced sentiment.Highlights
Record Business Bookings
Aptiv achieved a fourth-quarter record of $10.1 billion in new business bookings, contributing to a total of $31 billion for the year, demonstrating strong commercial traction and portfolio strength.
Strong Operating Income and Cash Flow
The company reported operating income of $623 million and a record operating cash flow of $1.1 billion, driven by strong operating performance and cost reduction initiatives.
Significant Earnings Per Share Growth
Earnings per share increased by 25% in the fourth quarter, supported by share repurchases and restructuring of interests in the Motional joint venture.
Revenue Growth with Chinese OEMs
Aptiv reported a 16% revenue growth with local Chinese OEMs, reflecting strong commercial traction and increased demand for software-defined vehicles.
Strategic Initiatives and Future Growth
Aptiv announced plans to separate the electrical distribution systems business by March 31, 2026, to enhance strategic focus and capitalize on market opportunities.
Lowlights
Decline in Overall Revenue
Aptiv's revenue totaled $4.9 billion in the fourth quarter, down 1% due to weak production schedules at select OEMs, particularly in Europe and multinational joint ventures in China.
Challenges in Electrified Vehicle Platforms
Revenue from electrified vehicle platforms was down 20% globally in the fourth quarter, contributing to a decrease in the company's overall revenue.
Impact of Geopolitical and Trade Uncertainties
Aptiv expressed concerns about the potential impact of geopolitical factors and trade policy changes, leading to a conservative outlook for 2025.
Continued Slowdown in Wind River Revenues
Full-year revenues for Wind River were down slightly due to the slowdown in investment in 5G infrastructure and longer selling cycles in automotive and industrial markets.
Company Guidance
During the Aptiv Q4 2024 Earnings Call, the company highlighted several key metrics and achievements for the fiscal year and provided guidance for 2025. Aptiv reported a record $10.1 billion in new business bookings for the fourth quarter and $31 billion for the entire year, reflecting the strength of its advanced technologies portfolio. Despite a slight 1% decrease in revenue to $4.9 billion, operating income reached $623 million, driven by cost reduction initiatives and share repurchases, resulting in a 25% growth in earnings per share. Operating cash flow hit a record $1.1 billion, aiding in deleveraging efforts. For 2025, Aptiv anticipates revenue between $19.6 billion and $20.4 billion, with a 2% increase at the midpoint and adjusted EPS growth of 17%. The company remains cautious about geopolitical factors affecting vehicle production but is optimistic about growth opportunities, particularly in electrification and software-related solutions. Key strategic decisions include the separation of its Electrical Distribution Systems business by Q1 2026 to create two independent companies, each focusing on distinct market opportunities.Aptiv Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Aptiv Plans Spin-Off of Electrical Distribution Unit
Positive
Feb 6, 2025
Aptiv announced its intention to spin off its Electrical Distribution Systems business into a new independent company by the end of the first quarter of 2025, resulting in a realignment into three reporting segments. The company reported strong financial results for the fourth quarter and full year of 2024, including record operating cash flow and earnings, amid a challenging market environment. This strategic move aims to enhance Aptiv’s ability to capitalize on market opportunities and drive long-term growth.
M&A TransactionsBusiness Operations and Strategy
Aptiv Announces Spin-Off of EDS Business
Positive
Jan 22, 2025
On January 22, 2025, Aptiv PLC announced its plan to separate its Electrical Distribution Systems (EDS) business into a new independent publicly traded company. This strategic move, approved by the Board of Directors, aims to enhance strategic focus and capitalize on market opportunities, positioning both Aptiv and EDS for growth. The separation is expected to occur through a tax-free spin-off by March 31, 2026, pending final approvals and conditions. Aptiv’s post-separation focus will be on high-growth, high-margin businesses aligned with global trends, while EDS will continue to be a leader in automotive and commercial vehicle markets, focusing on low and high voltage electrical architectures. Both companies are expected to benefit from tailored strategies, capital structures, and investor bases, ultimately creating significant value for shareholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.