Visteon (VC) AI Stock Analysis

• Market Cap: $2.78B
• Dividend Yield: 0.55%
• Average Volume (3M): 308.83K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.66
• Revenue Growth: -4.03%
• EPS Growth: -39.51%
• Country: US
• Employees: 10,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 2.15
• Shares Outstanding: 27,285,921
• 10 Day Avg. Volume: 362,264
• 30 Day Avg. Volume: 308,833
• PEG Ratio: -0.21
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 8.43
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 5.70
• Enterprise Value/Ebitda: 7.64
• 1Y Price Target: $135.40
• Price Target Upside: 35.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 9.11
• Revenue Forecast (FY): $3.74B

• Rating: 73 Outperform
• Price Target: $111.00 ▲(10.81% Upside)

Visteon's overall stock score is driven primarily by its strong financial performance and robust cash flow generation, which are offset by bearish technical indicators and challenges in key markets like China. The company's valuation suggests potential undervaluation, and recent corporate events reflect a positive strategic direction despite current market headwinds.

Positive Factors

New Business Wins

Securing $1.8 billion in new business indicates strong demand for Visteon's products, enhancing future revenue streams and market position.

Product Launches

Launching 28 new products demonstrates Visteon's innovation and adaptability, strengthening its competitive edge in automotive electronics.

Cash Flow Generation

Strong free cash flow growth enhances financial flexibility, allowing for strategic investments and shareholder returns.

Negative Factors

Sales Decline

A 6% sales decline reflects challenges in maintaining top-line growth, potentially impacting future profitability.

Challenges in China

Declining sales in China suggest market share loss and adverse conditions, which could hinder growth in a key market.

BMS Sales Decline

A decline in BMS sales indicates challenges in the EV market, potentially affecting Visteon's growth in this segment.

Visteon Business Overview & Revenue Model

Company Description

Visteon Corporation, an automotive technology company, engineers, designs, and manufactures automotive electronics and connected car solutions for vehicle manufacturers worldwide. The company provides instrument clusters, including analog gauge clusters to 2-D and 3-D display-based devices; information displays that integrate a range of user interface technologies and graphics management capabilities, such as 3-D, active privacy, TrueColor enhancement, cameras, optics, haptic feedback, and light effects; and Phoenix, a display audio and embedded infotainment platform, as well as onboard artificial intelligence-based voice assistant with natural language understanding. It also offers wired and wireless battery management systems; telematics control unit to enable secure connected car services, software updates, and data; and head-up displays. In addition, the company provides SmartCore, an automotive-grade, integrated domain controller; DriveCore, a platform for addressing multiple levels of vehicle automation; and body domain modules, which integrate various functions, such as central gateway, body controls, comfort, and vehicle access solutions into one device. Visteon Corporation was incorporated in 2000 and is headquartered in Van Buren, Michigan.

How the Company Makes Money

Visteon generates revenue primarily through the sale of its automotive electronics products to original equipment manufacturers (OEMs) and tier one suppliers. Key revenue streams include the design, manufacturing, and supply of cockpit electronics and related software solutions. The company benefits from long-term contracts with major automakers, ensuring a steady flow of income. Additionally, Visteon's partnerships with technology firms and collaborations on electric and autonomous vehicle projects contribute to its earnings by expanding its product offerings and market reach. The increasing demand for connected vehicle technologies and smart cockpit systems further enhances Visteon's revenue potential.

Visteon Financial Statement Overview

Summary

Visteon exhibits a strong financial position with robust profitability margins, efficient leverage management, and excellent cash flow generation. Despite a slight decline in revenue growth, the company maintains a healthy balance sheet and cash flow, positioning it well for future opportunities and challenges in the auto parts industry.

Income Statement

Visteon's income statement shows a strong performance with a solid gross profit margin of 14.47% and a net profit margin of 8.22% for TTM (Trailing-Twelve-Months). The EBIT and EBITDA margins are also healthy at 9.42% and 10.80%, respectively. However, the revenue growth rate has declined by 1.65% in the TTM, indicating a potential challenge in maintaining top-line growth.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.09, reflecting strong financial leverage management. The return on equity is impressive at 22.69%, indicating efficient use of equity capital. The equity ratio stands at 45.57%, showcasing a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 22.83% in the TTM, demonstrating improved cash generation capabilities. The operating cash flow to net income ratio is 1.60, indicating efficient conversion of income into cash. The free cash flow to net income ratio is 1.00, showing that all net income is effectively translated into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.76B	3.87B	3.95B	3.76B	2.77B	2.55B
Gross Profit	544.00M	531.00M	697.00M	572.00M	453.00M	446.00M
EBITDA	406.00M	409.00M	365.00M	295.00M	199.00M	101.00M
Net Income	309.00M	274.00M	486.00M	124.00M	41.00M	-56.00M
Balance Sheet
Total Assets	3.25B	2.86B	2.73B	2.45B	2.23B	2.27B
Cash, Cash Equivalents and Short-Term Investments	762.00M	623.00M	515.00M	520.00M	452.00M	500.00M
Total Debt	442.00M	426.00M	445.00M	477.00M	498.00M	527.00M
Total Liabilities	1.69B	1.55B	1.60B	1.68B	1.62B	1.76B
Stockholders Equity	1.48B	1.23B	1.04B	675.00M	516.00M	387.00M
Cash Flow
Free Cash Flow	423.00M	290.00M	142.00M	86.00M	-12.00M	64.00M
Operating Cash Flow	495.00M	427.00M	267.00M	167.00M	58.00M	168.00M
Investing Cash Flow	-177.00M	-189.00M	-123.00M	-68.00M	-63.00M	-98.00M
Financing Cash Flow	-112.00M	-100.00M	-156.00M	-9.00M	-29.00M	-58.00M

Visteon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 100.17
• 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 VC, the sentiment is Negative. The current price of 100.17 is below the 20-day moving average (MA) of 101.58, below the 50-day MA of 106.15, and above the 200-day MA of 100.05, indicating a neutral trend. The MACD of -1.05 indicates Negative momentum. The RSI at 45.84 is Neutral, neither overbought nor oversold. The STOCH value of 55.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VC.

Visteon 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%	2.61%	0.84%	26.17%
LEA	75 Outperform	$5.99B	14.14	8.96%	2.64%	-1.90%	-13.86%
VC	73 Outperform	$2.78B	9.16	23.16%	0.55%	-4.03%	-39.51%
APTV	70 Outperform	$16.73B	60.94	3.25%	―	2.16%	-85.91%
BWA	65 Neutral	$9.52B	71.33	2.24%	1.25%	0.08%	-83.69%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GT	51 Neutral	$2.52B	-1.46	-45.16%	―	-3.87%	-482.29%

Visteon Corporate Events

Visteon Reports Strong Q3 2025 Performance

Visteon Corporation reported a strong third quarter in 2025, with sales of $917 million and net income of $57 million. Despite a 6% year-over-year sales decline due to reduced Battery Management Systems sales in the U.S. and sales decline in China, the company achieved a net cash position of $459 million and secured $1.8 billion in new business wins. Visteon launched 28 new products, including advanced display and SmartCoreTM cockpit domain controller programs, and paid its first quarterly dividend. The company maintains its full-year guidance, with adjusted EBITDA and free cash flow tracking towards the high end of the range.