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Aptiv
(NYSE:APTV)
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Rating:58Neutral
Price Target:
$61.00
▲(2.31% Upside)
Action:Reiterated
Date:06/04/26
The score is held back primarily by weaker recent financial performance (margin compression, lower returns, and higher leverage) and a demanding valuation (P/E ~45). These are partly offset by strong technical momentum (despite overbought signals) and a balanced-to-constructive earnings outlook with maintained guidance and strong bookings, albeit with notable near-term FX/commodity and separation-related cash flow pressures.
Positive Factors
Strategic EDS spin-off and capital return
The Versigent spin-off materially refocuses Aptiv on higher‑margin electronic systems and software, reduces asset intensity, and supplied cash ($1.65B) to pay down debt and fund buybacks. Structurally this improves capital allocation optionality and aligns the business with secular software/EV content trends.
Negative Factors
Higher leverage versus recent years
Elevated leverage reduces financial flexibility for large investments or cyclic downturns and raises servicing risk if margins stay pressured. Even after debt paydowns, pro forma leverage near 2x gross constrains free cash deployment and increases sensitivity to cash‑flow volatility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic EDS spin-off and capital return
The Versigent spin-off materially refocuses Aptiv on higher‑margin electronic systems and software, reduces asset intensity, and supplied cash ($1.65B) to pay down debt and fund buybacks. Structurally this improves capital allocation optionality and aligns the business with secular software/EV content trends.
Read all positive factors
Aptiv Key Performance Indicators (KPIs)
Any
Adjusted Operating Income by Segment
Provides a refined view of segment profitability by excluding one-time items, offering clearer insight into core operational performance and trends.
Provides a refined view of segment profitability by excluding one-time items, offering clearer insight into core operational performance and trends.
Data provided by:
The Fly
The FlyAptiv (APTV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.48B
Dividend YieldN/A
Average Volume (3M)4.05M
Price to Earnings (P/E)37.3
Beta (1Y)0.98
Revenue Growth5.20%
EPS Growth-71.83%
CountryUS
Employees144,250
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.68
Shares Outstanding211,620,530
10 Day Avg. Volume3,347,554
30 Day Avg. Volume4,052,780
Financial Highlights & Ratios
PEG Ratio-1.14
Price to Book (P/B)1.82
Price to Sales (P/S)0.82
P/FCF Ratio10.99
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit4.93
Enterprise Value/Ebitda8.99
Forecast
1Y Price Target
$79.23Price Target Upside32.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)6.17
Revenue Forecast (FY)$14.07B
Aptiv Business Overview & Revenue Model
Company Description
Aptiv PLC, an industrial technology company, provides hardware and software solutions to support automotive and other industries in North America, Europe, the Middle East, Africa, the Asia Pacific, and South America. It operates through three segm...
How the Company Makes Money
Aptiv makes money primarily by supplying automotive components and systems to vehicle manufacturers under production supply agreements that scale with vehicle build volumes. Its largest revenue stream comes from the Signal and Power Solutions segm...
Aptiv Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
Balanced but constructive: the company delivered a record EPS and strong bookings while completing the strategic EDS separation and maintaining full-year guidance. These positives are tempered by near-term headwinds — notably commodity inflation, FX impacts, negative Q1 free cash flow driven by separation payments, and customer/production mix issues (including China and one large North American OEM). Management highlighted operational levers, pass-throughs to customers, and confidence in mid-to-long-term growth (including >$20B bookings cadence and secular tailwinds in software, nonautomotive and AI/edge markets), which supports a cautiously optimistic outlook despite short-term pressure.Positive Updates
Successful Separation of EDS (Versigent)
Completed the spin-off of Electrical Distribution Systems (Versigent), positioning New Aptiv to focus on advanced software and optimized hardware; spin mechanics included $1.65B net dividend from Versigent and pro forma New Aptiv gross leverage of 2.3x / net leverage 1.9x.
Negative Updates
Commodity and FX Headwinds
Significant headwinds from FX and commodity inflation drove an EBITDA margin decline of ~90 basis points YoY for Total Aptiv; Varun noted FX/commodities headwinds were ~180 bps vs. a previously forecasted 120 bps, and recent commodity spikes added roughly a 60-basis-point headwind versus prior guidance.
Read all updates
Q1-2026 Updates
Positive
Negative
Successful Separation of EDS (Versigent)
Completed the spin-off of Electrical Distribution Systems (Versigent), positioning New Aptiv to focus on advanced software and optimized hardware; spin mechanics included $1.65B net dividend from Versigent and pro forma New Aptiv gross leverage of 2.3x / net leverage 1.9x.
Read all positive updates
Company Guidance
Aptiv reiterated pro forma New Aptiv 2026 guidance calling for adjusted revenue growth of 4% at the midpoint, adjusted EBITDA of $2.4 billion and an adjusted EBITDA margin of 18.6% at the midpoint, adjusted EPS of $5.70–$6.10 (assuming an 18.5% effective tax rate, excluding material buyback benefit), and free cash flow of about $750 million at the midpoint (inclusive of separation transaction costs and semiconductor supply investments). For Q2 the company expects adjusted revenue growth of 2% at the midpoint, adjusted EBITDA of $580 million with a 17.6% margin and EPS of $1.40 at the midpoint. Management said the year’s cadence reflects roughly +100 basis points from improved vehicle production H2 vs H1, +150 basis points from abatement of specific customer/program headwinds and ~300 basis points from program launches/ramps, noted $70 million of annualized stranded costs to be removed by end‑2027, and expects to recoup about $80 million of tax‑related separation payments later in the year; the company closed Q1 with $5.1 billion of revenue, $752 million adjusted EBITDA, EPS $1.71, negative free cash flow of $362 million (including ~$260 million of transaction payments), pro forma gross leverage of 2.3x (net 1.9x) and $75 million of share repurchases in the quarter.Aptiv Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
58
Neutral
Cash Flow
53
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.66B | 20.40B | 19.71B | 20.05B | 17.49B | 15.62B |
| Gross Profit | 3.95B | 3.90B | 3.53B | 3.09B | 2.50B | 2.35B |
| EBITDA | 2.17B | 2.23B | 3.45B | 2.53B | 1.97B | 1.83B |
| Net Income | 365.00M | 165.00M | 1.79B | 2.94B | 594.00M | 590.00M |
Balance Sheet | ||||||
| Total Assets | 25.20B | 23.41B | 23.46B | 24.43B | 21.88B | 18.01B |
| Cash, Cash Equivalents and Short-Term Investments | 3.17B | 1.85B | 1.57B | 1.64B | 1.53B | 3.14B |
| Total Debt | 9.35B | 8.09B | 8.89B | 6.79B | 6.96B | 4.46B |
| Total Liabilities | 15.68B | 13.91B | 14.37B | 12.58B | 12.79B | 9.45B |
| Stockholders Equity | 9.23B | 9.21B | 8.80B | 11.55B | 8.83B | 8.35B |
Cash Flow | ||||||
| Free Cash Flow | 1.09B | 1.53B | 1.62B | 990.00M | 419.00M | 611.00M |
| Operating Cash Flow | 1.77B | 2.19B | 2.45B | 1.90B | 1.26B | 1.22B |
| Investing Cash Flow | -516.00M | -498.00M | -507.00M | -1.00B | -5.18B | -729.00M |
| Financing Cash Flow | 803.00M | -1.44B | -1.97B | -807.00M | 2.36B | -191.00M |
Aptiv Technical Analysis
Negative
59.62
Price Trends
61.48
Negative
61.86
Negative
65.19
Negative
Market Momentum
-0.93
Positive
41.42
Neutral
26.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APTV, the sentiment is Negative. The current price of 59.62 is below the 20-day moving average (MA) of 64.34, below the 50-day MA of 61.48, and below the 200-day MA of 65.19, indicating a bearish trend. The MACD of -0.93 indicates Positive momentum. The RSI at 41.42 is Neutral, neither overbought nor oversold. The STOCH value of 26.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APTV.
Aptiv Risk Analysis
Aptiv disclosed 42 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.55B | 12.97 | 10.41% | 2.63% | 2.86% | 17.30% | |
72 Outperform | $2.73B | 16.66 | 11.08% | 0.57% | -2.04% | -43.19% | |
72 Outperform | $8.70B | 12.43 | 27.78% | 2.60% | 6.14% | 7.30% | |
71 Outperform | $14.74B | 40.74 | 6.34% | 1.24% | 2.36% | 34.03% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $13.48B | 37.30 | 3.90% | ― | 5.20% | -71.83% | |
58 Neutral | $8.06B | -1.90 | -37.31% | ― | 8.69% | -37.14% |
* Consumer Cyclical Sector Average
APTV
Aptiv
58.89
-2.58
-4.19%
ALV
Autoliv
116.24
1.96
1.72%
BWA
BorgWarner
63.52
28.67
82.25%
LEA
Lear
130.85
29.91
29.63%
VC
Visteon
102.45
0.28
0.27%
MBLY
Mobileye Global, Inc. Class A
9.57
-8.84
-48.02%
Aptiv Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Aptiv Posts Q1 Results After Versigent Spin-Off Transformation
Positive
May 5, 2026
On May 5, 2026, Aptiv reported first-quarter 2026 results showing U.S. GAAP revenue of $5.1 billion, up 5% year on year, with 1% growth on an adjusted basis, and net income of $189 million, or $0.88 per diluted share, compared with a loss a year e...
Executive/Board ChangesShareholder Meetings
Aptiv Shareholders Endorse Board, Auditor and Executive Pay
Positive
Apr 30, 2026
At Aptiv’s Annual General Meeting of Shareholders held on April 29, 2026, investors elected all nominated directors to one-year terms, with each receiving strong majority support despite some variation in opposition and abstentions. Sharehol...
Business Operations and StrategyDividendsPrivate Placements and Financing
Aptiv Completes Tender Offer Reshaping Long-Term Debt Profile
Positive
Apr 6, 2026
On April 3, 2026, Aptiv’s subsidiary Aptiv Swiss Holdings Limited completed a cash tender offer for multiple series of senior notes maturing between 2032 and 2054, with aggregate consideration capped at $1.371 billion, excluding accrued inte...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.