Education
About Us
Working with TipRanks
Follow Us
Visteon (VC)
NASDAQ:VC
Top Page
Visteon
(NASDAQ:VC)77Outperform
Positive Factors
Financial Performance
Visteon executed well this quarter, with solid adjusted EBITDA and record FCF for 4Q24.
New Business Wins
Visteon achieved its target for $6bn+ in new business wins, booking another $1.2bn in gross new business wins in 4Q:24.
Negative Factors
China Market Challenges
China remained challenging and will likely take time to improve.
Financial Outlook
The 2025 financial outlook provided by Visteon is below BofA and consensus estimates.
Visteon (VC) vs. S&P 500 (SPY)
Market Cap
$2.25B
Dividend YieldN/A
Average Volume (3M)361.56K
Price to Earnings (P/E)8.8
Beta (1Y)0.62
Revenue Growth-2.23%
EPS Growth-42.94%
CountryUS
Employees10,000
SectorConsumer Cyclical
Sector Strength53
IndustryVehicles
Share Statistics
EPS (TTM)9.81
Shares Outstanding27,080,482
10 Day Avg. Volume331,842
30 Day Avg. Volume361,556
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)N/A
Price to Sales (P/S)0.58
Price to Cash Flow (P/CF)2.80
P/FCF Ratio2.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$110.70Price Target Upside27.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
Visteon Business Overview & Revenue Model
Company DescriptionVisteon Corp. engages in the design, engineering, and manufacture of electronics products, automotive vehicles and supplies automotive parts. Its products include Instrument Clusters, Information Displays, Audio and Infotainment Systems, Telematics Solutions, Head-Up Displays, SmartCore Domain Controller and DriveCore Autonomous Driving Controller. The company was founded on January 5, 2000 and is headquartered in Van Buren Township, MI.
How the Company Makes MoneyVisteon makes money primarily through the sale of its electronic components and systems to automotive original equipment manufacturers (OEMs). The company's revenue streams are largely derived from the development and production of digital cockpit electronics, which include instrument clusters, displays, and infotainment systems. Visteon also generates income from its connectivity solutions, such as telematics control units. The company's partnerships with leading global car manufacturers, as well as its focus on innovation and technological advancement, play a significant role in driving its earnings. Additionally, Visteon benefits from long-term supply agreements and contracts with automotive OEMs, providing a stable revenue base and opportunities for growth as the industry shifts towards more technologically advanced vehicles.
Visteon Financial Statement Overview
Summary
Visteon exhibits strong financial health characterized by consistent revenue growth, improved profitability margins, and a solid balance sheet with reduced leverage. The company's ability to generate substantial free cash flow underscores its operational efficiency. While the recent dip in revenue growth warrants attention, the overall financial trajectory remains positive, supported by strategic financial management and cost control.Income Statement
Visteon's income statement shows strong growth with a revenue increase from $2.548 billion in 2020 to $3.866 billion in 2024. The gross profit margin improved to 13.74% in 2024, up from 9.62% in 2020, indicating improved cost management. Net profit margin also saw an upward trend, reaching 7.09% in 2024 from a negative margin in 2020. The consistent increase in EBIT and EBITDA margins further supports the company's profitability trajectory. However, the slight dip in revenue in 2024 compared to 2023 suggests a potential plateauing of growth.85
Very Positive
Balance Sheet
The balance sheet reflects a solid equity position, with stockholders' equity growing to $1.229 billion in 2024 from $387 million in 2020. The debt-to-equity ratio improved significantly, indicating decreased leverage and better financial stability. The equity ratio increased to 42.94% in 2024, highlighting a stronger capital base. However, total liabilities remain substantial, posing a potential risk if not managed properly.79
Positive
Cash Flow
Visteon's cash flow statement demonstrates robust free cash flow generation, with free cash flow growing from $64 million in 2020 to $427 million in 2024. The operating cash flow to net income ratio indicates efficient cash generation from operations. The strong free cash flow to net income ratio suggests effective conversion of profits into cash. However, fluctuations in investing and financing cash flows indicate strategic adjustments that need careful monitoring.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.87B | 3.95B | 3.76B | 2.77B | 2.55B | Gross Profit |
| 531.00M | 487.00M | 368.00M | 254.00M | 245.00M | EBIT |
| 324.00M | 280.00M | 203.00M | 105.00M | 72.00M | EBITDA |
| 409.00M | 378.00M | 297.00M | 199.00M | 101.00M | Net Income Common Stockholders |
| 274.00M | 486.00M | 124.00M | 41.00M | -48.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 623.00M | 515.00M | 520.00M | 452.00M | 496.00M | Total Assets |
| 2.86B | 2.73B | 2.45B | 2.23B | 2.27B | Total Debt |
| 426.00M | 445.00M | 477.00M | 498.00M | 527.00M | Net Debt |
| -197.00M | -70.00M | -43.00M | 46.00M | 31.00M | Total Liabilities |
| 1.55B | 1.60B | 1.68B | 1.62B | 1.76B | Stockholders Equity |
| 1.23B | 1.04B | 675.00M | 516.00M | 387.00M |
| Cash Flow | Free Cash Flow | |||
| 427.00M | 142.00M | 86.00M | -12.00M | 64.00M | Operating Cash Flow |
| 427.00M | 267.00M | 167.00M | 58.00M | 168.00M | Investing Cash Flow |
| -189.00M | -123.00M | -68.00M | -63.00M | -98.00M | Financing Cash Flow |
| -100.00M | -156.00M | -9.00M | -29.00M | -58.00M |
Visteon Technical Analysis
Negative
86.55
Price Trends
85.44
Negative
88.73
Negative
96.03
Negative
Market Momentum
0.18
Positive
42.34
Neutral
27.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VC, the sentiment is Negative. The current price of 86.55 is above the 20-day moving average (MA) of 84.78, above the 50-day MA of 85.44, and below the 200-day MA of 96.03, indicating a bearish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 42.34 is Neutral, neither overbought nor oversold. The STOCH value of 27.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VC.
Visteon Risk Analysis
Visteon disclosed 21 risk factors in its most recent earnings report. Visteon reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Visteon Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.25B | 8.82 | 24.17% | ― | -2.23% | -42.94% | |
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% | |
59 Neutral | $5.45B | 13.60 | 16.69% | 2.00% | 0.61% | -4.04% |
* Consumer Cyclical Sector Average
Performance Comparison
VC
Visteon
86.55
-29.42
-25.37%
ALV
Autoliv
98.01
-17.05
-14.82%
BWA
BorgWarner
29.19
-2.33
-7.39%
GNTX
Gentex
24.62
-11.75
-32.31%
LEA
Lear
94.11
-42.17
-30.94%
MGA
Magna International
36.81
-14.99
-28.94%
Visteon Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: 4.01% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
Visteon had an impressive year with record financial results, significant new business wins, and strong alignment with market trends. However, challenges in China, a flat sales outlook for 2025, and uncertainties in the electric vehicle market are notable concerns.Highlights
Record Financial Performance
Visteon delivered record adjusted EBITDA of $474 million, record adjusted free cash flow of $300 million, and robust sales of $3.87 billion for 2024.
Significant New Business Wins
Visteon secured $6.1 billion of new business wins in 2024, marking the third consecutive year of achieving or exceeding $6 billion. Key wins include partnerships with Toyota, Maruti Suzuki, and Mercedes Benz.
Strong Product Portfolio and Market Alignment
Visteon's product portfolio, including SmartCore, large displays, and digital clusters, is well aligned with industry trends in digitalization and electrification, driving outperformance in various markets.
Operational Excellence and Cost Control
Adjusted EBITDA margin reached a record 12.3%, a 130 basis point improvement from last year, driven by strong operational execution and cost control.
Expansion in New Markets
Visteon made significant progress in expanding its customer base in Asia, securing new business with OEMs like Toyota and Maruti Suzuki, and entering the fast-growing electric vehicle power electronics market.
Lowlights
Challenges in China
Visteon faced headwinds in China due to the loss of market share by global OEMs and a challenging market environment. This led to a 5% headwind to growth in the region.
Flat Sales Outlook for 2025
Visteon's sales outlook for 2025 is $3.75 billion at the midpoint, indicating a flat year-over-year performance due to anticipated declines in customer vehicle production and FX headwinds.
Subdued Quoting Activity in 2024
Visteon experienced a lower level of customer quoting activity in 2024, particularly in Europe and North America, impacting future business opportunities.
Uncertainty in Electric Vehicle Market
Visteon expects flat to slightly down BMS sales in 2025 due to uncertainties around tariffs and incentives in the electric vehicle market.
Company Guidance
During the earnings call for Visteon, the guidance for the fiscal year 2025 was outlined, with anticipated sales of $3.75 billion at the midpoint, representing a flat base year-over-year due to expected headwinds from lower customer vehicle production and foreign exchange impacts. Despite these challenges, the company projects mid to high single-digit growth over the market, driven by new product launches with several OEMs such as Ford, Renault, Stellantis, and Toyota. Adjusted EBITDA is forecasted between $450 million to $480 million, equating to a margin of 12.4% at the midpoint, signifying a slight margin improvement year-over-year. The adjusted free cash flow is expected to range from $175 million to $200 million, translating to a 40% conversion of adjusted EBITDA. Visteon also targets significant growth through 2027, with sales projected to reach $4.15 billion, reflecting a 5% CAGR and a 90 basis point expansion in adjusted EBITDA margin to 13.3%. The company plans to leverage scale, operational improvements, and vertical integration to achieve these targets.Visteon Corporate Events
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Visteon Reports Strong 2024 Financial Performance
Positive
Feb 18, 2025
In 2024, Visteon Corporation reported strong financial performance with net sales of $3.87 billion and $6.1 billion in new business wins, driven by product launches and market outperformance. Despite a decline in net income due to a reduced tax benefit, the company achieved record adjusted EBITDA and free cash flow, reflecting operational excellence and cost discipline. Visteon’s strategic initiatives led to significant new business wins and product launches, including digital clusters and electrification solutions, enhancing its market position and supporting future growth.
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.