Visteon (VC) AI Stock Analysis

• Market Cap: $2.80B
• Dividend Yield: N/A
• Average Volume (3M): 364.13K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.59
• Revenue Growth: -1.35%
• EPS Growth: -39.06%
• Country: US
• Employees: 10,000
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Auto - Parts
• EPS (TTM): 2.40
• Shares Outstanding: 27,258,238
• 10 Day Avg. Volume: 501,983
• 30 Day Avg. Volume: 364,132
• PEG Ratio: 0.15
• Price to Book (P/B): 5.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 42.75
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 6.61
• Enterprise Value/Ebitda: 2.29
• 1Y Price Target: $96.33
• Price Target Upside: -6.37% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 79 Outperform
• Price Target: $118.00 ▲(14.70%Upside)

Visteon's strong financial performance and attractive valuation are the most significant factors driving the overall score. The bullish technical indicators support a positive outlook, though caution is warranted due to potential overbought conditions. Earnings call insights and corporate events provide additional context but are less impactful.

Positive Factors

Competitive Advantage

Visteon is demonstrating real success in Displays, with competitive advantages that are underappreciated.

Industry Trends

The company remains one of the fastest growing auto suppliers, with a product portfolio leveraged to key industry mega-trends like digitalization and electrification.

New Business Growth

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.

Market Conditions

China remained challenging and will likely take time to improve.

Production Volumes

FY25 guidance was weaker than anticipated driven by lower volumes, with expected soft production volumes from major automotive manufacturers.

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 makes money primarily by developing and supplying advanced automotive electronics systems to original equipment manufacturers (OEMs). The company generates revenue through the sale of its key products, including digital instrument clusters, infotainment systems, head-up displays, and telematics solutions. Visteon's business model is largely based on long-term contracts with automotive manufacturers, which provide a steady stream of income. Additionally, Visteon may engage in strategic partnerships and collaborations to enhance its product offerings and expand its market reach, contributing to its overall earnings.

Visteon Financial Statement Overview

Summary

Visteon exhibits strong financial health with stable revenue growth, solid profitability metrics, and efficient cash flow generation. The company's low debt profile enhances its financial stability and reduces risk.

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.

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.

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.

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
EBITDA	375.00M	409.00M	378.00M	297.00M	199.00M	101.00M
Net Income	297.00M	274.00M	486.00M	124.00M	41.00M	-48.00M
Balance Sheet
Total Assets	3.00B	2.86B	2.73B	2.45B	2.23B	2.27B
Cash, Cash Equivalents and Short-Term Investments	655.00M	623.00M	515.00M	520.00M	452.00M	496.00M
Total Debt	449.00M	426.00M	445.00M	477.00M	498.00M	527.00M
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

• Technical Analysis Sentiment: Positive
• Last Price: 102.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 102.88 is above the 20-day moving average (MA) of 90.91, above the 50-day MA of 85.94, and above the 200-day MA of 86.67, indicating a bullish trend. The MACD of 3.53 indicates Negative momentum. The RSI at 75.88 is Negative, neither overbought nor oversold. The STOCH value of 83.91 is Negative, 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
ALSN	80 Outperform	$8.23B	11.31	50.15%	1.10%	3.86%	16.02%
VC	79 Outperform	$2.80B	9.63	25.15%	―	-1.35%	-39.06%
APTV	79 Outperform	$15.72B	11.96	15.52%	―	-2.47%	-43.12%
BWA	76 Outperform	$7.81B	28.58	5.38%	1.24%	-8.23%	-52.61%
LEA	75 Outperform	$5.52B	12.10	10.00%	2.98%	-3.15%	-6.70%
ALV	75 Outperform	$8.86B	13.20	28.71%	2.37%	-2.29%	35.00%
Sector *	61 Neutral	C$5.24B	10.94	18.94%	3.79%	5.08%	6.52%

Visteon Corporate Events

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.

The most recent analyst rating on (VC) stock is a Buy with a $135.00 price target. To see the full list of analyst forecasts on Visteon stock, see the VC Stock Forecast page.

Visteon Reports Strong Q1 2025 Financial Results

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.