Aptiv (APTV) AI Stock Analysis

• Market Cap: $15.34B
• Dividend Yield: N/A
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.86
• Revenue Growth: -2.47%
• EPS Growth: -43.12%
• Country: US
• Employees: 141,000
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Auto - Parts
• EPS (TTM): 1.69
• Shares Outstanding: 217,730,480
• 10 Day Avg. Volume: 2,070,283
• 30 Day Avg. Volume: 2,281,675
• PEG Ratio: -0.84
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.83
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 6.11
• Enterprise Value/Ebitda: 1.92
• 1Y Price Target: $81.18
• Price Target Upside: 15.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 79 Outperform
• Price Target: $81.00 ▲(14.96%Upside)

Aptiv's strong financial performance and positive technical indicators are key drivers of its stock score. The company benefits from robust profitability and cash flow, supported by strategic initiatives. While valuation remains reasonable, macroeconomic challenges and regional revenue declines necessitate caution. The earnings call provided confidence in future growth opportunities, reinforcing Aptiv's competitive position.

Positive Factors

Business Strategy

The tax-free spin of its EDC business could benefit shareholders in the long run.

Cash Flow

Management stressed the strong cash flow generation, which should enable a faster deleverage of the balance sheet than most expect.

Financial Performance

Aptiv appears to be tracking towards the high-end of their Q2 guide.

Negative Factors

Market Valuation

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 Outlook

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

Supply Chain Risks

Tariffs on major clients VW and Stellantis pose significant supply chain risks for APTV, with revenue impact anticipated.

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 makes money through the design and supply of advanced automotive technologies that enhance vehicle performance and safety. The company's key revenue streams include sales of electrical architecture products, such as wiring harnesses and connectors, and advanced safety and user experience systems, which encompass driver assistance technologies and infotainment products. Additionally, Aptiv benefits from strategic partnerships with major automotive manufacturers around the world, leveraging these relationships to expand its market reach and drive innovation. Factors such as the increasing demand for electric vehicles and autonomous driving solutions significantly contribute to its earnings, as the company positions itself as a leader in next-generation vehicle technology.

Aptiv Financial Statement Overview

Summary

Aptiv demonstrates strong profitability and efficient cash flow generation, with a solid income statement and a healthy operating cash flow. However, the balance sheet indicates a moderate reliance on liabilities and slight revenue decline, suggesting the need for strategic revenue growth initiatives.

Income Statement

Aptiv's income statement shows solid profitability with a strong gross profit margin and consistent EBIT and EBITDA margins over the TTM (Trailing-Twelve-Months). The net profit margin is impressive, indicating efficient cost management and a healthy bottom line. However, slight revenue decline from the previous annual report suggests a need for focus on revenue growth strategies.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, suggesting a balanced approach to leveraging. Return on equity is robust, indicating effective utilization of shareholder funds to generate profits. However, the equity ratio shows a moderate level of reliance on liabilities, which should be managed to prevent potential risks.

Cash Flow

Cash flow analysis highlights a healthy operating cash flow to net income ratio, underscoring strong cash generation capability. Free cash flow growth is positive, supported by effective capital expenditure management. However, there's a need to monitor financing and investing cash flows to sustain long-term liquidity.

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
EBITDA	1.84B	2.53B	1.97B	1.83B	2.88B
Net Income	1.79B	2.94B	869.00M	809.00M	1.80B
Balance Sheet
Total Assets	23.46B	24.43B	21.90B	18.01B	17.52B
Cash, Cash Equivalents and Short-Term Investments	1.57B	1.64B	1.53B	3.14B	2.82B
Total Debt	8.89B	6.79B	6.85B	4.37B	4.40B
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

• Technical Analysis Sentiment: Positive
• Last Price: 70.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 70.46 is above the 20-day moving average (MA) of 70.42, above the 50-day MA of 68.73, and above the 200-day MA of 62.76, indicating a bullish trend. The MACD of 0.66 indicates Positive momentum. The RSI at 55.07 is Neutral, neither overbought nor oversold. The STOCH value of 72.85 is Neutral, 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
APTV	79 Outperform	$15.34B	11.67	15.52%	―	-2.47%	-43.12%
VC	79 Outperform	$3.14B	10.80	22.96%	―	-3.26%	-45.84%
ALV	75 Outperform	$8.90B	12.82	29.99%	2.40%	-0.98%	21.64%
LEA	74 Outperform	$5.78B	12.76	9.51%	2.85%	-3.15%	-6.70%
BWA	73 Outperform	$7.92B	29.37	5.38%	1.22%	-8.23%	-52.61%
Sector *	64 Neutral	£1.74B	10.45	6.12%	255.82%	0.55%	-33.64%
MBLY	61 Neutral	$12.43B	―	-22.06%	―	-0.38%	-1681.25%

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.