Aptiv (APTV) AI Stock Analysis

• Market Cap: $15.61B
• Dividend Yield: N/A
• Average Volume (3M): 2.51M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.90
• Revenue Growth: -2.47%
• EPS Growth: -43.12%
• Country: US
• Employees: 141,000
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Parts
• EPS (TTM): 2.12
• Shares Outstanding: 217,759,810
• 10 Day Avg. Volume: 3,483,155
• 30 Day Avg. Volume: 2,512,044
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 5.64
• Enterprise Value/Ebitda: 9.80
• 1Y Price Target: $82.92
• Price Target Upside: 11.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 71 Outperform
• Price Target: $74.00 ▼(-0.39% Downside)

Aptiv's overall stock score reflects strong financial performance and a reasonable valuation, tempered by mixed technical indicators and cautious earnings call sentiment. The company's robust profitability and strategic initiatives are strengths, while macroeconomic uncertainties and technical weakness present risks.

Positive Factors

Financial Performance

Aptiv reported solid second-quarter results that exceeded both JP Morgan and consensus estimates, suggesting strong cost execution is likely to continue.

Strategic Growth

Aptiv's strong balance sheet and free cash flow generation provide opportunities for acquisitions or shareholder-friendly activities.

Negative Factors

Market Concerns

Current valuations suggest that the market has concerns around both the lower-growth Electrical Distribution Systems business and the 'new Aptiv' focused on higher-growth areas.

Production Challenges

Aptiv management has noted that production schedules in early second half have 'softened', indicating a more cautious tone compared to other suppliers.

Aptiv Business Overview & Revenue Model

Company Description

Aptiv PLC is a global technology company that develops safer, greener, and more connected solutions for the automotive and transportation sectors. Operating in two primary segments—Signal and Power Solutions and Advanced Safety and User Experience—the company designs and manufactures a wide range of products including electrical wiring, connectors, advanced driver assistance systems (ADAS), and software solutions that enhance vehicle performance and safety. Aptiv leverages its expertise in software and hardware integration to create innovative mobility solutions that support the evolution towards electric and autonomous vehicles.

How the Company Makes Money

Aptiv generates revenue primarily through the sale of its automotive components and systems to original equipment manufacturers (OEMs) and automotive suppliers. Key revenue streams include the production of electrical and electronic architecture, which encompasses wiring harnesses and connectors, as well as advanced safety and user experience technologies, such as ADAS and infotainment systems. Significant partnerships with major automakers and tech companies bolster Aptiv's earnings by integrating its solutions into a wide range of vehicle models. The company's focus on high-growth areas like electric vehicles and smart mobility, along with ongoing investments in research and development, further contribute to its revenue generation as it adapts to industry trends and customer demands.

Aptiv Financial Statement Overview

Summary

Aptiv presents a strong financial profile with consistent revenue growth and robust profitability. The income statement shows healthy margins and positive revenue growth. The balance sheet is stable, though leverage should be monitored. Cash flow management is effective, supporting operational and strategic initiatives.

Income Statement

Aptiv shows a strong performance in its income statement metrics. The Gross Profit Margin is healthy, and the Net Profit Margin has improved steadily over the years. The EBIT and EBITDA margins are solid, indicating effective cost management. The revenue growth rate has been positive, showcasing Aptiv's ability to increase its sales consistently over the years.

Balance Sheet

The balance sheet indicates a stable financial position for Aptiv. The Debt-to-Equity ratio is moderate, reflecting a balanced approach to leveraging. Return on Equity (ROE) is commendable, showing efficient use of equity to generate profits. However, the equity ratio suggests that the company is moderately leveraged, which could pose a risk if not managed carefully.

Cash Flow

Aptiv's cash flow statement demonstrates strong cash flow management. The Operating Cash Flow to Net Income ratio is robust, indicating efficient conversion of net income into cash. Free Cash Flow has seen growth, suggesting effective investment and capital expenditure strategies. However, fluctuations in investing and financing cash flows could pose potential risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.79B	19.71B	20.05B	17.49B	15.62B	13.07B
Gross Profit	3.78B	3.71B	3.46B	2.63B	2.44B	1.94B
EBITDA	2.17B	1.84B	2.53B	1.97B	1.83B	2.88B
Net Income	1.84B	1.79B	2.94B	869.00M	809.00M	1.80B
Balance Sheet
Total Assets	23.94B	23.46B	24.43B	21.88B	18.01B	17.52B
Cash, Cash Equivalents and Short-Term Investments	1.45B	1.57B	1.64B	1.53B	3.14B	2.82B
Total Debt	8.35B	8.89B	6.79B	6.96B	4.46B	4.50B
Total Liabilities	13.97B	14.37B	12.58B	12.79B	9.45B	9.42B
Stockholders Equity	9.69B	8.80B	11.55B	8.83B	8.35B	7.91B
Cash Flow
Free Cash Flow	1.66B	1.62B	990.00M	419.00M	611.00M	829.00M
Operating Cash Flow	2.34B	2.45B	1.90B	1.26B	1.22B	1.41B
Investing Cash Flow	110.00M	-507.00M	-1.00B	-5.17B	-729.00M	-626.00M
Financing Cash Flow	-2.43B	-1.97B	-807.00M	2.35B	-191.00M	1.61B

Aptiv Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 74.29 is above the 20-day moving average (MA) of 68.72, above the 50-day MA of 68.94, and above the 200-day MA of 62.61, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 65.04 is Neutral, neither overbought nor oversold. The STOCH value of 98.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APTV.

Aptiv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	82 Outperform	$3.24B	11.77	22.96%	―	-3.26%	-45.84%
LEA	76 Outperform	$5.32B	11.68	9.51%	2.98%	-3.12%	-8.23%
ALV	75 Outperform	$8.91B	12.69	29.99%	2.34%	-0.98%	21.64%
BWA	72 Outperform	$8.97B	44.26	3.66%	1.06%	-2.12%	-69.42%
APTV	71 Outperform	$15.61B	12.38	15.52%	―	-2.47%	-43.12%
Sector *	63 Neutral	€17.61B	13.44	15.56%	3.59%	-0.67%	-125.81%
MBLY	61 Neutral	$11.46B	―	-22.06%	―	4.07%	-1211.52%

Aptiv Corporate Events

Aptiv Plans Spin-Off of Electrical Distribution Unit

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.