Aptiv (APTV) AI Stock Analysis

• Market Cap: $16.73B
• Dividend Yield: N/A
• Average Volume (3M): 2.16M
• Price to Earnings (P/E): 61.5
• Beta (1Y): 1.05
• Revenue Growth: 2.16%
• EPS Growth: -85.91%
• Country: US
• Employees: 141,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 2.17
• Shares Outstanding: 216,079,400
• 10 Day Avg. Volume: 1,919,673
• 30 Day Avg. Volume: 2,160,522
• PEG Ratio: -0.26
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 9.60
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 6.38
• Enterprise Value/Ebitda: 11.21
• 1Y Price Target: $98.42
• Price Target Upside: 27.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 7.77
• Revenue Forecast (FY): $20.31B

• Rating: 70 Outperform
• Price Target: $85.00 ▲(9.79% Upside)

Aptiv's overall stock score reflects a strong earnings call and positive corporate events, which are offset by technical indicators suggesting potential bearish momentum and a high P/E ratio indicating overvaluation. The company's solid financial position supports its strategic initiatives, but challenges in maintaining profitability and macroeconomic uncertainties pose risks.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Strategic Spin-Off

The spin-off aims to enhance strategic focus and operational efficiency, potentially improving market positioning and shareholder value.

Strong New Business Bookings

Robust new business bookings reflect strong customer demand and reinforce Aptiv's growth trajectory, ensuring future revenue streams.

Negative Factors

Declining Profit Margins

Decreasing profit margins indicate potential cost pressures or pricing challenges, which could impact long-term profitability and competitiveness.

Goodwill Impairment

The impairment reflects slower growth expectations, potentially affecting future earnings and signaling challenges in strategic initiatives.

China Market Challenges

Stagnant growth in China highlights regional market challenges, which could hinder Aptiv's global expansion and revenue diversification efforts.

Aptiv Business Overview & Revenue Model

Company Description

Aptiv PLC designs, manufacturers, and sells vehicle components worldwide. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates in two segment, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle's electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. The Advanced Safety and User Experience segment provides critical components, systems integration, and software development for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, and autonomous driving technologies. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was founded in 2011 and is based in Dublin, Ireland.

How the Company Makes Money

Aptiv generates revenue primarily through the sale of its automotive components and systems to original equipment manufacturers (OEMs) and Tier 1 suppliers. Key revenue streams include Signal and Power Solutions, which encompasses wiring harnesses, connectors, and electrical distribution systems, and Advanced Safety and User Experience, which includes software and hardware solutions for vehicle safety and connectivity. The company benefits from long-term contracts and partnerships with major automotive manufacturers, enabling it to secure consistent orders. Additionally, Aptiv invests in research and development to innovate and provide cutting-edge solutions in autonomous driving and electric vehicles, further diversifying its revenue potential.

Aptiv Financial Statement Overview

Summary

Aptiv demonstrates a solid financial position with positive revenue growth and improved gross margins. However, declining net profit margins and return on equity suggest challenges in maintaining profitability. The company's leverage is under control, and cash flow generation remains robust, supporting its operational and strategic initiatives.

Income Statement

Aptiv's income statement shows a positive trajectory with a revenue growth rate of 1.81% in the TTM, indicating recovery and expansion. The gross profit margin improved to 19.88%, reflecting better cost management. However, the net profit margin decreased to 1.46%, suggesting increased expenses or lower pricing power. EBIT and EBITDA margins also declined, pointing to potential operational inefficiencies.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.87 in the TTM, indicating manageable leverage. Return on equity dropped to 3.21%, highlighting reduced profitability for shareholders. The equity ratio stands at 62.98%, showing a solid equity base relative to total assets, which provides financial stability.

Cash Flow

Aptiv's cash flow statement indicates a healthy free cash flow growth of 6.94% in the TTM, supporting future investments and debt repayments. The operating cash flow to net income ratio is 0.50, suggesting strong cash generation relative to earnings. However, the free cash flow to net income ratio of 0.73 indicates that not all earnings are translating into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.15B	19.71B	20.05B	17.49B	15.62B	13.07B
Gross Profit	4.01B	3.53B	3.09B	2.50B	2.35B	1.81B
EBITDA	2.28B	3.45B	2.53B	1.97B	1.83B	2.88B
Net Income	295.00M	1.79B	2.94B	594.00M	590.00M	1.80B
Balance Sheet
Total Assets	23.50B	23.46B	24.43B	21.88B	18.01B	17.52B
Cash, Cash Equivalents and Short-Term Investments	1.64B	1.57B	1.64B	1.53B	3.14B	2.82B
Total Debt	8.17B	8.89B	6.79B	6.96B	4.46B	4.50B
Total Liabilities	13.93B	14.37B	12.58B	12.79B	9.45B	9.42B
Stockholders Equity	9.28B	8.80B	11.55B	8.83B	8.35B	7.91B
Cash Flow
Free Cash Flow	1.77B	1.62B	990.00M	419.00M	611.00M	829.00M
Operating Cash Flow	2.43B	2.45B	1.90B	1.26B	1.22B	1.41B
Investing Cash Flow	232.00M	-507.00M	-1.00B	-5.18B	-729.00M	-626.00M
Financing Cash Flow	-2.06B	-1.97B	-807.00M	2.36B	-191.00M	1.61B

Aptiv Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 77.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 77.42 is above the 20-day moving average (MA) of 76.49, below the 50-day MA of 80.20, and above the 200-day MA of 71.58, indicating a neutral trend. The MACD of -0.57 indicates Negative momentum. The RSI at 45.28 is Neutral, neither overbought nor oversold. The STOCH value of 32.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APTV.

Aptiv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALV	78 Outperform	$9.14B	12.43	31.09%	2.59%	0.84%	26.17%
LEA	75 Outperform	$5.99B	14.14	8.96%	2.67%	-1.90%	-13.86%
VC	73 Outperform	$2.78B	9.16	23.16%	0.54%	-4.03%	-39.51%
APTV	70 Outperform	$16.73B	61.47	3.25%	―	2.16%	-85.91%
BWA	65 Neutral	$9.52B	71.33	2.24%	1.26%	0.08%	-83.69%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MBLY	44 Neutral	$8.46B	-24.44	-2.80%	―	7.61%	88.66%

Aptiv Corporate Events

Aptiv Appoints Håkan Agnevall to Board of Directors

On December 2, 2025, Aptiv PLC announced the appointment of Håkan Agnevall, President and CEO of Wärtsilä Corporation, to its Board of Directors, effective December 10, 2025. Agnevall’s extensive experience in electrification, automation, and international leadership is expected to bolster Aptiv’s strategic execution and expansion across industrial sectors.

Aptiv Announces Spin-Off at Investor Day 2025

On November 18, 2025, Aptiv PLC hosted its Investor Day, where the management team presented strategic updates and financial insights. The event highlighted Aptiv’s resilient business model and its plans to spin off its Electrical Distribution Systems segment, creating two well-positioned public companies. This strategic move aims to enhance Aptiv’s focus on Intelligent Systems and Engineered Components, aligning capital allocation priorities with growth opportunities in software-defined features and electrification.

Aptiv Announces Spin-Off of Electrical Distribution Systems

On November 14, 2025, Aptiv PLC announced that its subsidiary, Cyprium Holdings Limited, filed a preliminary Registration Statement with the SEC for the intended separation of its Electrical Distribution Systems business into a new, independent publicly traded company. This spin-off, expected to be completed by March 31, 2026, aims to enhance Aptiv’s strategic focus and operational efficiency, potentially impacting its market positioning and shareholder value.