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Visteon
(NASDAQ:VC)
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Rating:72Outperform
Price Target:
$105.00
▲(6.44% Upside)
Action:Upgraded
Date:06/30/26
The score is primarily supported by strong financial positioning (improving leverage, healthy returns, and solid cash generation) and a constructive outlook from the latest earnings call (reaffirmed guidance, strong bookings/launch cadence). Valuation is reasonable at a mid-teens P/E with a modest yield, while the main constraints are limited technical-data visibility and near-term cost/supply and free-cash-flow headwinds.
Positive Factors
Balance Sheet Health
Visteon’s materially reduced leverage and conservative debt position provide durable financial flexibility. Lower debt-to-equity and a net cash posture allow the company to fund launches, buybacks, M&A and working-capital needs through auto cycles, reducing bankruptcy and refinancing risk.
Negative Factors
Supply & Memory Cost Pressure
Persistent memory supply tightness and higher semiconductor pricing can erode gross margins over multiple quarters. Delayed supplier relief and imperfect cost recoveries from OEMs create structural margin risk for hardware-heavy content unless offsets from higher-value software or price renegotiation occur.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Health
Visteon’s materially reduced leverage and conservative debt position provide durable financial flexibility. Lower debt-to-equity and a net cash posture allow the company to fund launches, buybacks, M&A and working-capital needs through auto cycles, reducing bankruptcy and refinancing risk.
Read all positive factors
Visteon (VC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.65B
Dividend Yield0.57%
Average Volume (3M)433.92K
Price to Earnings (P/E)16.0
Beta (1Y)0.71
Revenue Growth-2.04%
EPS Growth-43.19%
CountryUS
Employees10,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)6.15
Shares Outstanding26,694,021
10 Day Avg. Volume451,983
30 Day Avg. Volume433,919
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)1.65
Price to Sales (P/S)0.69
P/FCF Ratio9.34
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue0.71
Enterprise Value/Gross Profit5.33
Enterprise Value/Ebitda6.56
Forecast
1Y Price Target
$135.45Price Target Upside37.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)8.6
Revenue Forecast (FY)$3.78B
Visteon Business Overview & Revenue Model
Company Description
Visteon Corporation, established in 2000 and headquartered in Van Buren, Michigan, is an automotive technology leader. The company specializes in engineering, designing, and manufacturing advanced electronics and connected car solutions for vehicl...
How the Company Makes Money
Visteon makes money primarily by selling cockpit electronics systems and related software/services directly to automotive OEMs under vehicle program supply agreements. Its core revenue stream is production revenue from shipping complete modules an...
Visteon Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presented a constructive operational and commercial story: revenue beat, solid new business wins (including strategic AI/HPC wins), a busy product launch slate, achieved one-time EV settlements, and a strong balance sheet with ongoing shareholder returns. However, material near-term headwinds remain — elevated memory costs, supply tightness through 2027, timing mismatch in recoveries, negative Q1 free cash flow driven by inventory and incentive payments, and softer second-half market risk tied to macro events. Management reaffirmed full-year guidance, expecting improvement in EBITDA as recoveries and cost actions take hold. Overall, the positives—growth, technology leadership, strong bookings, and balance sheet strength—outweigh the near-term operational and market challenges.Positive Updates
Revenue Beat and Market Outperformance
Net sales of $954 million in Q1, up 2% year-over-year, with growth over market of 3%—quarter came ahead of company expectations despite lower industry/customer production.
Negative Updates
Elevated Semiconductor/Memory Costs and Supply Tightness
Q1 saw elevated semiconductor/memory costs driven by AI/data center demand and suppliers shifting away from older nodes; company expects memory tightness and pricing pressure to persist into 2027, creating ongoing cost and supply risk.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Beat and Market Outperformance
Net sales of $954 million in Q1, up 2% year-over-year, with growth over market of 3%—quarter came ahead of company expectations despite lower industry/customer production.
Read all positive updates
Company Guidance
Visteon reaffirmed full‑year 2026 guidance with revenue of $3.625–$3.825 billion (low single‑digit growth over market), adjusted EBITDA $455–$495 million (≈12.8% margin at midpoint) and adjusted free cash flow $170–$210 million (currently trending toward the lower end). Q1 actuals: sales $954 million (+2% YoY; growth over market 3%; customer production down 4%), adjusted EBITDA $104 million (10.9% margin), adjusted free cash flow –$23 million, net cash $385 million, $40 million returned to shareholders ($30M repurchases, $10M dividends), just over $1 billion of new business wins and 20 launches with 11 OEMs. Management flagged a $5M pricing headwind and roughly $15M net commercial headwind in Q1 (partly offset by about $20M of one‑time EV settlements to sales and ~$10M to EBITDA), said the Q1 EBITDA was the expected low point with margins to improve as customer recoveries and cost initiatives take effect, expects most semiconductor/memory recoveries to be weighted later in 2026, anticipates supply tightness into 2027 (roughly 10% of 2026 demand sourced from emerging suppliers), and noted S&P lowered global LVP ~1.5 pts with key‑customer production now seen declining mid‑single digits in H2—yet strong H1 orders and launches (and a $100M per‑side guidance range) support maintaining the outlook.Visteon Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.79B | 3.77B | 3.87B | 3.95B | 3.76B | 2.77B |
| Gross Profit | 507.00M | 532.00M | 531.00M | 697.00M | 572.00M | 453.00M |
| EBITDA | 412.00M | 451.00M | 409.00M | 365.00M | 295.00M | 199.00M |
| Net Income | 167.00M | 201.00M | 274.00M | 486.00M | 124.00M | 41.00M |
Balance Sheet | ||||||
| Total Assets | 3.42B | 3.39B | 2.86B | 2.73B | 2.45B | 2.23B |
| Cash, Cash Equivalents and Short-Term Investments | 680.00M | 771.00M | 623.00M | 515.00M | 520.00M | 452.00M |
| Total Debt | 436.00M | 540.00M | 426.00M | 445.00M | 477.00M | 498.00M |
| Total Liabilities | 1.78B | 1.74B | 1.55B | 1.60B | 1.68B | 1.62B |
| Stockholders Equity | 1.56B | 1.57B | 1.23B | 1.04B | 675.00M | 516.00M |
Cash Flow | ||||||
| Free Cash Flow | 212.00M | 277.00M | 290.00M | 142.00M | 86.00M | -12.00M |
| Operating Cash Flow | 346.00M | 410.00M | 427.00M | 267.00M | 167.00M | 58.00M |
| Investing Cash Flow | -196.00M | -181.00M | -189.00M | -123.00M | -68.00M | -63.00M |
| Financing Cash Flow | -145.00M | -116.00M | -100.00M | -156.00M | -9.00M | -29.00M |
Visteon Technical Analysis
Negative
98.65
Price Trends
112.72
Negative
102.92
Negative
104.03
Negative
Market Momentum
-0.42
Positive
37.25
Neutral
29.09
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 98.65 is below the 20-day moving average (MA) of 114.91, below the 50-day MA of 112.72, and below the 200-day MA of 104.03, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 37.25 is Neutral, neither overbought nor oversold. The STOCH value of 29.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VC.
Visteon Risk Analysis
Visteon disclosed 22 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.72B | 13.24 | 10.41% | 2.63% | 2.86% | 17.30% | |
72 Outperform | $2.65B | 16.00 | 11.08% | 0.57% | -2.04% | -43.19% | |
72 Outperform | $8.70B | 12.49 | 27.78% | 2.60% | 6.14% | 7.30% | |
71 Outperform | $13.62B | 38.62 | 6.34% | 1.24% | 2.36% | 34.03% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $12.99B | 36.50 | 3.90% | ― | 5.20% | -71.83% | |
43 Neutral | $1.90B | -0.91 | -58.09% | ― | -3.69% | -958.22% |
* Consumer Cyclical Sector Average
VC
Visteon
99.21
1.63
1.67%
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116.17
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BWA
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32.06
93.35%
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61.38
0.67
1.10%
GT
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6.60
-4.06
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134.06
35.98
36.68%
Visteon Corporate Events
Business Operations and StrategyStock Buyback
Visteon Announces New $800 Million Share Repurchase Program
Positive
Jun 25, 2026
On June 24, 2026, Visteon’s board authorized an $800 million share repurchase program for its common stock, running through December 31, 2029, with the company planning to fund the buybacks from excess cash and future cash flows. The move un...
Business Operations and StrategyExecutive/Board Changes
Visteon Adds AI-Focused Technology Leader to Board
Positive
Jun 17, 2026
On June 16, 2026, Visteon’s board of directors elected technology executive Gary D. Hicok to join the board effective July 1, 2026, and appointed him to the Technology Committee. The board determined he meets all independence requirements, a...
Executive/Board Changes
Visteon Reappoints Francis Scricco as Non-Executive Chairman
Positive
Jun 15, 2026
On June 11, 2026, Visteon’s board of directors reappointed Francis M. Scricco as non-executive chairman of the board of the company. The decision signals continuity in the company’s board leadership and governance structure, which may ...
Business Operations and StrategyPrivate Placements and Financing
Visteon Expands Credit Facilities to Enhance Financial Flexibility
Positive
Apr 29, 2026
On April 27, 2026, Visteon Corporation amended its long-standing credit agreement, replacing its existing revolving credit facility with a new $400 million revolving line and refinancing its term loans with a new $300 million term loan A facility,...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Visteon Posts Q1 2026 Results, Reaffirms Full-Year Outlook
Positive
Apr 23, 2026
On April 23, 2026, Visteon reported first-quarter 2026 sales of $954 million, up 2% year over year, with 3% growth over the auto production market despite lower vehicle output by customers. Net income attributable to Visteon reached $31 million an...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.