Visteon (VC) AI Stock Analysis

• Market Cap: $3.30B
• Dividend Yield: 0.23%
• Average Volume (3M): 298.91K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.59
• Revenue Growth: -3.26%
• EPS Growth: -45.84%
• Country: US
• Employees: 10,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 2.39
• Shares Outstanding: 27,276,339
• 10 Day Avg. Volume: 300,029
• 30 Day Avg. Volume: 298,910
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 4.45
• Enterprise Value/Ebitda: 6.44
• 1Y Price Target: $132.21
• Price Target Upside: 9.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 82 Outperform
• Price Target: $145.00 ▲(20.14% Upside)

Visteon's overall stock score of 82 reflects its strong financial performance and strategic positioning in the auto parts industry. The company's robust profitability, effective cost management, and positive earnings call guidance are significant strengths. While technical indicators suggest a potential short-term pullback, the company's attractive valuation and positive corporate events support a favorable outlook.

Positive Factors

Strong Financial Performance

Visteon's strong financial performance, driven by demand for digital cockpit products, highlights its competitive position and operational efficiency, supporting long-term growth.

New Product Launches and Business Wins

The launch of new products and securing significant new business underscores Visteon's innovation and market expansion, enhancing its future revenue streams.

Leadership Stability

The reappointment of a seasoned chairman ensures continuity in strategic leadership, which is crucial for maintaining the company's direction and achieving long-term objectives.

Negative Factors

Decline in BMS Sales

The decline in BMS sales indicates challenges in this segment, potentially affecting Visteon's diversification and revenue stability if not addressed.

Challenges in the Chinese Market

Challenges in the Chinese market, a key automotive region, could hinder Visteon's global growth prospects and require strategic adjustments to regain market share.

Revenue Growth Decline

A decline in revenue growth suggests potential headwinds in market demand or competitive pressures, which may impact Visteon's ability to sustain its growth trajectory.

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 and software products to major automobile manufacturers worldwide. Its revenue model is based on long-term contracts with automotive OEMs (Original Equipment Manufacturers), which provide a steady stream of income as vehicles are produced and equipped with Visteon's technology. Key revenue streams include the sale of cockpit electronics, software development for vehicle connectivity, and systems integration services. Additionally, Visteon benefits from partnerships with leading automotive companies and technology firms, allowing it to leverage collaborative innovations and expand its market reach. The company's focus on emerging trends such as electric vehicles and autonomous driving also positions it favorably for future growth.

Visteon Financial Statement Overview

Summary

Visteon exhibits strong financial performance with robust profitability, effective cost management, and excellent cash flow generation. The balance sheet is well-structured with low leverage, enhancing financial stability. The company is well-positioned for sustainable growth, supported by improving margins and strategic capital management.

Income Statement

Visteon's income statement shows robust financial health with a significant improvement in gross and net profit margins over the years. The TTM data indicates a gross profit margin of approximately 14.23% and a net profit margin of 7.61%, reflecting operational efficiency. The EBIT and EBITDA margins are strong at 8.97%, demonstrating effective cost management. Revenue growth has been stable, with some fluctuations; however, the overall trajectory is positive.

Balance Sheet

The balance sheet of Visteon reveals a solid financial position with a low debt-to-equity ratio of 0.09 in the TTM period, indicating prudent leverage management. The equity ratio stands at 44.54%, showcasing a healthy capital structure. Return on equity is impressive at 20.46%, underscoring strong shareholder returns. The company's strategic debt reduction over time has bolstered its financial stability.

Cash Flow

Visteon's cash flow analysis highlights excellent free cash flow growth, with a significant increase from previous periods. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is favorable, demonstrating effective capital expenditure management and robust liquidity. Overall, the cash flow strength supports future growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.82B	3.87B	3.95B	3.76B	2.77B	2.55B
Gross Profit	544.00M	531.00M	487.00M	368.00M	254.00M	245.00M
EBITDA	376.00M	409.00M	378.00M	297.00M	199.00M	101.00M
Net Income	291.00M	274.00M	486.00M	124.00M	41.00M	-56.00M
Balance Sheet
Total Assets	3.19B	2.86B	2.73B	2.45B	2.23B	2.27B
Cash, Cash Equivalents and Short-Term Investments	668.00M	623.00M	515.00M	520.00M	452.00M	496.00M
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	1.42B	1.23B	1.04B	675.00M	516.00M	387.00M
Cash Flow
Free Cash Flow	403.00M	290.00M	142.00M	86.00M	-12.00M	64.00M
Operating Cash Flow	466.00M	427.00M	267.00M	167.00M	58.00M	168.00M
Investing Cash Flow	-232.00M	-189.00M	-123.00M	-68.00M	-63.00M	-98.00M
Financing Cash Flow	-102.00M	-100.00M	-156.00M	-9.00M	-29.00M	-58.00M

Visteon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 120.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 120.69 is below the 20-day moving average (MA) of 124.75, above the 50-day MA of 119.78, and above the 200-day MA of 94.05, indicating a neutral trend. The MACD of 0.81 indicates Positive momentum. The RSI at 44.58 is Neutral, neither overbought nor oversold. The STOCH value of 19.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VC.

Visteon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	82 Outperform	$3.30B	11.84	22.96%	0.23%	-3.26%	-45.84%
ALV	79 Outperform	9.59B	13.66	28.96%	2.39%	-0.98%	21.64%
APTV	79 Outperform	18.52B	19.39	10.45%	―	-0.96%	-66.99%
LEA	76 Outperform	5.41B	11.88	9.24%	3.07%	-3.12%	-8.23%
ALSN	68 Neutral	7.26B	9.86	43.47%	1.24%	2.70%	15.17%
BWA	67 Neutral	9.38B	46.28	3.55%	1.15%	-2.12%	-69.42%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Visteon Corporate Events

Visteon Reports Strong Q2 2025 Financial Results

On July 24, 2025, Visteon Corporation reported its second quarter financial results, highlighting sales of $969 million and a net income of $65 million. Despite a slight year-over-year decline in sales, the company achieved increased profitability and cash flow, driven by strong operational performance and new business wins totaling $2.0 billion. Visteon also initiated a quarterly dividend and updated its full-year 2025 guidance, reflecting confidence in future cash flow generation. The company’s strategic focus on digital cockpit solutions and new product launches underscores its commitment to long-term growth, while resuming capital returns to shareholders through dividends and share repurchases.

Visteon Appoints Marjorie T. Sennett to Board

On July 17, 2025, Visteon Corporation announced the appointment of Marjorie T. Sennett to its Board of Directors, where she will serve on the Audit and Organization and Compensation Committees. Ms. Sennett brings extensive experience in finance and technology, having served on various boards and as a CFO, which is expected to enhance Visteon’s strategic direction in the automotive technology sector. Her appointment underscores Visteon’s commitment to strengthening its leadership in the fast-growing automotive technology market.

Visteon Reappoints Francis Scricco as Board Chairman

On June 5, 2025, Visteon‘s Board of Directors re-appointed Mr. Francis M. Scricco as the non-executive Chairman of the Board. This decision reflects the company’s confidence in Mr. Scricco’s leadership and is expected to influence its strategic direction positively.