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Visteon (VC)
NASDAQ:VC
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Visteon
(NASDAQ:VC)
Rating:81Outperform
Price Target:
$96.00
▲( 14.29% Upside)
Positive Factors
Financial Performance
Visteon has one of the strongest balance sheets in the supplier coverage, ending 4Q:24 with a net cash position of $304mm.
New Business Wins
Visteon achieved its target for $6bn+ in new business wins, booking another $1.2bn in gross new business wins in 4Q:24.
Negative Factors
Financial Outlook
The 2025 financial outlook provided by Visteon is below BofA and consensus estimates.
Industry Challenges
China remained challenging and will likely take time to improve.
Visteon (VC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.31B
Dividend YieldN/A
Average Volume (3M)378.08K
Price to Earnings (P/E)7.9
Beta (1Y)0.59
Revenue Growth-1.35%
EPS Growth-39.06%
CountryUS
Employees10,000
SectorConsumer Cyclical
Sector Strength72
IndustryAuto - Parts
Share Statistics
EPS (TTM)2.40
Shares Outstanding27,258,238
10 Day Avg. Volume327,339
30 Day Avg. Volume378,080
Financial Highlights & Ratios
PEG Ratio0.88
Price to Book (P/B)1.75
Price to Sales (P/S)0.00
P/FCF Ratio6.89
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit3.81
Enterprise Value/Ebitda1.32
Forecast
1Y Price Target
$93.45Price Target Upside11.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Visteon Business Overview & Revenue Model
Company DescriptionVisteon 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 MoneyVisteon makes money primarily through the sale of its electronic components and systems to automotive original equipment manufacturers (OEMs). The company's revenue streams are largely derived from the development and production of digital cockpit electronics, which include instrument clusters, displays, and infotainment systems. Visteon also generates income from its connectivity solutions, such as telematics control units. The company's partnerships with leading global car manufacturers, as well as its focus on innovation and technological advancement, play a significant role in driving its earnings. Additionally, Visteon benefits from long-term supply agreements and contracts with automotive OEMs, providing a stable revenue base and opportunities for growth as the industry shifts towards more technologically advanced vehicles.
Visteon Financial Statement Overview
Summary
Visteon demonstrates strong financial health with consistent profitability, stable revenue growth, and robust cash flow generation. The company's low debt profile enhances its financial stability, positioning it well within the auto-parts industry.Income Statement
Visteon has shown strong financial performance with a consistent increase in key profitability metrics. The TTM (Trailing-Twelve-Months) gross profit margin is 14.22%, and the net profit margin stands at 7.68%. The company experienced a slight revenue growth rate of 0.03% over the previous annual period, indicating stability. EBIT and EBITDA margins are healthy at 9.00% and 9.70%, respectively, reflecting robust operational performance.85
Very Positive
Balance Sheet
Visteon's balance sheet exhibits strength, with a favorable debt-to-equity ratio of 0.10, suggesting low leverage and prudent financial management. The return on equity (ROE) is impressive at 22.62%, indicating efficient use of equity. The equity ratio of 43.80% underscores the company's solid financial foundation and lower risk exposure.80
Positive
Cash Flow
The cash flow analysis reveals strong free cash flow growth, with a 13.18% increase compared to the previous year, indicating improved liquidity. The operating cash flow to net income ratio is 1.44, and the free cash flow to net income ratio is 1.24, demonstrating robust cash generation capabilities relative to earnings.88
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.87B | 3.87B | 3.95B | 3.76B | 2.77B | 2.55B | Gross Profit |
| 550.00M | 531.00M | 487.00M | 368.00M | 254.00M | 245.00M | EBIT |
| 348.00M | 324.00M | 280.00M | 203.00M | 105.00M | 72.00M | EBITDA |
| 375.00M | 409.00M | 378.00M | 297.00M | 199.00M | 101.00M | Net Income Common Stockholders |
| 297.00M | 274.00M | 486.00M | 124.00M | 41.00M | -48.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 655.00M | 623.00M | 515.00M | 520.00M | 452.00M | 496.00M | Total Assets |
| 3.00B | 2.86B | 2.73B | 2.45B | 2.23B | 2.27B | Total Debt |
| 449.00M | 426.00M | 445.00M | 477.00M | 498.00M | 527.00M | Net Debt |
| -206.00M | -197.00M | -70.00M | -43.00M | 46.00M | 31.00M | Total Liabilities |
| 1.60B | 1.55B | 1.60B | 1.68B | 1.62B | 1.76B | Stockholders Equity |
| 1.31B | 1.23B | 1.04B | 675.00M | 516.00M | 387.00M |
| Cash Flow | Free Cash Flow | ||||
| 334.00M | 290.00M | 142.00M | 86.00M | -12.00M | 64.00M | Operating Cash Flow |
| 428.00M | 427.00M | 267.00M | 167.00M | 58.00M | 168.00M | Investing Cash Flow |
| -185.00M | -189.00M | -123.00M | -68.00M | -63.00M | -98.00M | Financing Cash Flow |
| -87.00M | -100.00M | -156.00M | -9.00M | -29.00M | -58.00M |
Visteon Technical Analysis
Positive
84.00
Price Trends
78.87
Positive
82.12
Positive
87.85
Negative
Market Momentum
2.13
Positive
56.19
Neutral
16.87
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VC, the sentiment is Positive. The current price of 84 is above the 20-day moving average (MA) of 83.20, above the 50-day MA of 78.87, and below the 200-day MA of 87.85, indicating a neutral trend. The MACD of 2.13 indicates Positive momentum. The RSI at 56.19 is Neutral, neither overbought nor oversold. The STOCH value of 16.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VC.
Visteon Risk Analysis
Visteon disclosed 21 risk factors in its most recent earnings report. Visteon reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Visteon Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.31B | 7.85 | 25.15% | ― | -1.35% | -39.06% | |
81 Outperform | $14.69B | 11.09 | 15.52% | ― | -2.47% | -43.12% | |
77 Outperform | $8.95B | 12.30 | 50.15% | 0.96% | 3.86% | 16.02% | |
76 Outperform | $7.32B | 26.78 | 5.38% | 1.34% | -8.22% | -52.61% | |
76 Outperform | $5.02B | 11.01 | 10.00% | 3.28% | -3.15% | -6.70% | |
73 Outperform | $7.88B | 11.75 | 28.71% | 2.75% | -2.29% | 35.00% | |
62 Neutral | $6.88B | 11.26 | 2.78% | 3.93% | 2.65% | -22.00% |
* Consumer Cyclical Sector Average
Performance Comparison
VC
Visteon
84.00
-24.80
-22.79%
ALSN
Allison Transmission Holdings
103.53
29.45
39.75%
ALV
Autoliv
100.62
-20.34
-16.82%
BWA
BorgWarner
32.96
-1.66
-4.79%
APTV
Aptiv
66.97
-13.31
-16.58%
LEA
Lear
90.54
-29.79
-24.76%
Visteon Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 12.63%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong operational performance and significant new business wins, but these were balanced by concerns over tariff-related uncertainties and challenges in the Chinese market. Despite positive achievements, the lack of reaffirmed guidance highlights the prevailing uncertainties.Q1-2025 Updates
Positive Updates
Strong Market Outperformance
Visteon achieved a growth over market of 10%, despite net sales of $934 million being flat year-over-year. Adjusted EBITDA was $129 million, representing a margin of 13.8%, a record for the company.
Significant New Business Wins
New business wins totaled $1.9 billion for the quarter, led by displays and digital cluster product wins with carmakers in Asia and the US.
Successful Product Launches
Visteon successfully launched 16 new vehicle models worldwide in Q1, with 10 being on mass-market vehicles, which included a mix of powertrains, such as hybrid electric gaining momentum.
Positive Traction in China
Visteon secured its first business win with Cherry, a fast-growing domestic OEM in China, for a large cockpit display, indicating positive traction in a challenging market.
Robust Pipeline and Future Prospects
The pipeline of new business opportunities remains robust, with strong demand anticipated for Visteon's technology and products.
Negative Updates
Tariff Uncertainty
The potential imposition of a 25% tariff on non-US content of auto parts poses uncertainty. This could impact approximately $10 million of Visteon products weekly, leading to a potential weekly cost of around $2.5 million.
Challenges in China
Visteon experienced a decline in sales in China due to the market share loss of global OEMs and lower sales with domestic OEMs due to lower export volumes.
Guidance Not Reaffirmed
Due to the uncertainty caused by tariffs, Visteon did not reaffirm its full-year guidance, reflecting the potential negative impact on industry production volumes.
Company Guidance
During Visteon's first quarter 2025 earnings call, the company reported strong financial results, with net sales of $934 million and adjusted EBITDA of $129 million, representing a margin of 13.8%. Visteon also achieved $1.9 billion in new business wins, driven largely by display and digital cluster product successes. Despite a muted production environment, the company grew margins by 290 basis points year-over-year. The call highlighted substantial traction in their display product line and new business wins with major carmakers, especially in Asia and the US. The company expressed concern over potential tariff impacts, which could affect industry production volumes and result in a weekly cost of approximately $2.5 million if tariffs on non-US content are implemented as planned. Although Visteon did not reaffirm its full-year guidance due to tariff-related uncertainties, it emphasized its strong balance sheet and strategic initiatives to navigate industry headwinds effectively.Visteon Corporate Events
Business Operations and StrategyFinancial Disclosures
Visteon Reports Strong Q1 2025 Financial Results
Positive
Apr 24, 2025
Visteon Corporation announced its first quarter 2025 financial results, reporting net sales of $934 million and a net income of $65 million, despite a challenging production environment. The company achieved a 10% growth over market, driven by the ramp-up of digital cockpit products, and secured $1.9 billion in new business wins, including significant contracts with OEMs in Asia and the two-wheeler market. Visteon’s strong balance sheet, with a net cash position of $343 million, provides flexibility to navigate uncertainties such as tariffs. The company launched 16 new products, highlighting its alignment with industry trends and strategic initiatives.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.