Aptiv (APTV) AI Stock Analysis

• Market Cap: $17.47B
• Dividend Yield: N/A
• Average Volume (3M): 1.87M
• Price to Earnings (P/E): 66.4
• Beta (1Y): 0.88
• 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: 2,233,894
• 30 Day Avg. Volume: 1,874,965
• 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: 1.46
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 6.38
• Enterprise Value/Ebitda: 11.67
• 1Y Price Target: $96.15
• Price Target Upside: 17.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 7.73
• Revenue Forecast (FY): $20.30B

• Rating: 73 Outperform
• Price Target: $90.00 ▲(9.62% Upside)

Aptiv's overall stock score is driven by strong earnings call results and a solid financial position, despite some profitability challenges. Technical indicators suggest caution in the short term, while valuation remains reasonable. The company's strategic initiatives and robust new business bookings provide a positive outlook.

Positive Factors

Revenue Growth

Aptiv's consistent revenue growth, driven by strong performance in North America and Asia Pacific, indicates robust market demand and effective strategic initiatives.

New Business Bookings

Strong new business bookings reflect Aptiv's competitive positioning and ability to secure long-term contracts, supporting future revenue streams and market expansion.

Non-Automotive Market Growth

Expansion in non-automotive markets diversifies Aptiv's revenue base, reducing dependency on traditional automotive sectors and enhancing growth opportunities.

Negative Factors

Profitability Challenges

Declining net profit margins indicate potential operational inefficiencies or pricing pressures, which could hinder long-term profitability and shareholder returns.

Goodwill Impairment

The significant goodwill impairment charge reflects challenges in expected growth, impacting financial health and indicating potential misalignment in strategic acquisitions.

China Market Challenges

Flat revenue in China, a key market, suggests difficulties in adapting to local demands and competitive pressures, potentially limiting growth in a crucial region.

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 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 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	2.19B	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: Neutral
• Last Price: 82.10
• 50DMA: Negative
• 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 Neutral. The current price of 82.1 is below the 20-day moving average (MA) of 83.49, below the 50-day MA of 83.64, and above the 200-day MA of 69.74, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 45.66 is Neutral, neither overbought nor oversold. The STOCH value of 28.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for APTV.

Aptiv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEA	75 Outperform	$5.53B	13.06	8.96%	2.82%	-1.90%	-13.86%
ALV	74 Outperform	$9.09B	12.37	31.09%	2.43%	0.84%	26.17%
APTV	73 Outperform	$17.47B	66.39	3.25%	―	2.16%	-85.91%
BWA	72 Outperform	$9.43B	70.66	2.24%	1.11%	0.08%	-83.69%
VC	71 Outperform	$2.88B	9.47	23.16%	0.25%	-4.03%	-39.51%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MBLY	47 Neutral	$10.13B	―	-2.80%	―	7.61%	88.66%

Aptiv Corporate Events

Aptiv PLC Reports Record Earnings Amid Challenges

Aptiv PLC’s recent earnings call painted a picture of strong financial performance, underscored by record results and substantial new business bookings. The sentiment was largely positive, with significant achievements in North America and non-automotive markets. However, the company faced challenges in China and Europe, alongside a notable goodwill impairment charge and production disruptions.

Aptiv PLC Reports Record Q3 2025 Results

Aptiv PLC is a global technology company specializing in creating safer, greener, and more connected solutions, primarily operating in the automotive sector.

Aptiv PLC Reports Record Q2 2025 Results

Aptiv PLC is a global technology company that specializes in creating safer, greener, and more connected solutions, primarily serving the automotive industry. The company is known for its innovative approach to electrification, automation, and digitalization.

Aptiv PLC’s Earnings Call: Strong Results Amid Challenges

Aptiv PLC’s recent earnings call conveyed a cautiously optimistic sentiment, as the company reported strong financial results and new business bookings, indicating robust demand for its products. Despite these positive outcomes, Aptiv faces challenges from foreign exchange and commodity headwinds, alongside market slowdowns in China. The overall tone balanced strong performance with ongoing macroeconomic uncertainties.