Visteon (VC)
NASDAQ:VC
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Visteon
(NASDAQ:VC)
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Rating:72Outperform
Price Target:
$104.00
▲(14.51% Upside)
Action:ReiteratedDate:02/20/26
VC scores well on fundamentals (strong deleveraging, solid profitability and cash generation) and looks attractively valued (low P/E). The score is held back by weak technical positioning (price below key moving averages and sub-neutral RSI) and near-term guidance headwinds (notably Americas BMS volume declines and higher memory costs), despite constructive longer-term wins and liquidity.
Positive Factors
Balance Sheet Strength
Visteon's materially lower debt and conservative debt-to-equity (~0.30) give durable financial flexibility. A strengthened balance sheet supports continued capital returns, opportunistic M&A, and resilience through auto-cycle volatility while reducing interest burden and refinancing risk.
Negative Factors
China Market Weakness
Sustained China underperformance risks long-term growth given the market's size for automotive electronics. Persistent share loss or OEM shifts in China can depress revenue and leverage intensity of fixed-cost programs, lengthening recovery timelines versus other regions.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Visteon's materially lower debt and conservative debt-to-equity (~0.30) give durable financial flexibility. A strengthened balance sheet supports continued capital returns, opportunistic M&A, and resilience through auto-cycle volatility while reducing interest burden and refinancing risk.
Read all positive factors
Visteon (VC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.44B
Dividend Yield0.57%
Average Volume (3M)586.03K
Price to Earnings (P/E)12.9
Beta (1Y)0.63
Revenue Growth-4.03%
EPS Growth-39.51%
CountryUS
Employees10,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)2.96
Shares Outstanding26,819,487
10 Day Avg. Volume535,018
30 Day Avg. Volume586,033
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 Cap0.92
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit4.22
Enterprise Value/Ebitda5.31
Forecast
1Y Price Target
$118.30Price Target Upside30.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)8.66
Revenue Forecast (FY)$3.74B
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 cl...
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...
Visteon Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presents a constructive long-term position driven by record profitability, strong free cash flow, and a record $7.4B of new business wins that position Visteon for future growth (notably in displays, SmartCore and high-performance compute). Near-term headwinds are evident — including a 3% decline in 2025 revenue, China market share pressures, significant BMS volume declines in the U.S., pricing and recovery pressures, and a ~2% of sales memory cost increase in 2026. Management expects these are largely transient (H2-weighted 2026 and recovery in 2027) and continues to invest in vertical integration, AI and strategic M&A. Given the strong cash generation, margin expansion and sizable backlog/new wins that offset the temporary top-line pressures, the overall tone is positive with cautious near-term conservatism.Positive Updates
Record Profitability
Adjusted EBITDA reached $492,000,000 (13.1% of sales) in 2025 — the highest level in company history, with normalized margins in the mid-12% range excluding one-time items.
Negative Updates
Revenue Decline in 2025
Full-year net sales were $3,768,000,000, down $98,000,000 or -3% year-over-year; customer production declined ~1% and pricing was a ~4% headwind for the year.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Profitability
Adjusted EBITDA reached $492,000,000 (13.1% of sales) in 2025 — the highest level in company history, with normalized margins in the mid-12% range excluding one-time items.
Read all positive updates
Company Guidance
The company guided 2026 sales of $3.625–$3.825 billion, with adjusted EBITDA of $455–$495 million (midpoint margin ~12.8%) and adjusted free cash flow of $170–$210 million (≈40% conversion at the midpoint); CapEx is expected at ≈$150 million (~4% of sales) and they expect to have more than $1.0 billion of cash available to deploy. Guidance assumes a nearly 50% YoY decline in Americas BMS volumes, a ~2% of sales increase in memory costs (with most recoverable but potential timing mismatch), and a ~2% net headwind from pricing/FX/other; 2025 included just under $30 million of one‑time benefits of which ~$10 million will repeat (a ~$20 million YoY headwind). They expect Q1 to be the weakest quarter (EBITDA pressured by low volumes and higher memory costs), a modest ~30 bps normalized margin improvement in 2026, a slight working‑capital use as inventories rise, an $18 million debt amortization, a year‑end net cash position of $472 million, an increased quarterly dividend of $0.375/share (~$40 million annually), and continued opportunistic share repurchases (at least to offset dilution) with $75 million remaining under authorization.Visteon Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
84
Very Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.77B | 3.87B | 3.95B | 3.76B | 2.77B |
| Gross Profit | 532.00M | 531.00M | 697.00M | 572.00M | 453.00M |
| EBITDA | 451.00M | 409.00M | 365.00M | 295.00M | 199.00M |
| Net Income | 201.00M | 274.00M | 486.00M | 124.00M | 41.00M |
Balance Sheet | |||||
| Total Assets | 3.39B | 2.86B | 2.73B | 2.45B | 2.23B |
| Cash, Cash Equivalents and Short-Term Investments | 771.00M | 623.00M | 515.00M | 520.00M | 452.00M |
| Total Debt | 540.00M | 426.00M | 445.00M | 477.00M | 498.00M |
| Total Liabilities | 1.74B | 1.55B | 1.60B | 1.68B | 1.62B |
| Stockholders Equity | 1.57B | 1.23B | 1.04B | 675.00M | 516.00M |
Cash Flow | |||||
| Free Cash Flow | 277.00M | 290.00M | 142.00M | 86.00M | -12.00M |
| Operating Cash Flow | 410.00M | 427.00M | 267.00M | 167.00M | 58.00M |
| Investing Cash Flow | -181.00M | -189.00M | -123.00M | -68.00M | -63.00M |
| Financing Cash Flow | -116.00M | -100.00M | -156.00M | -9.00M | -29.00M |
Visteon Technical Analysis
Neutral
90.82
Price Trends
93.20
Negative
96.56
Negative
104.88
Negative
Market Momentum
-0.87
Negative
50.87
Neutral
73.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VC, the sentiment is Neutral. The current price of 90.82 is above the 20-day moving average (MA) of 88.68, below the 50-day MA of 93.20, and below the 200-day MA of 104.88, indicating a neutral trend. The MACD of -0.87 indicates Negative momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 73.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 1 New Risks
1.
Domestic Chinese Suppliers are becoming stronger competitors outside of China and Chinese OEMs for which the Company has less product content are increasingly expanding their market share outside of China, both of which in turn may negatively impact the Company's financial performance Q4, 2025
Visteon Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.44B | 12.87 | 13.90% | 0.57% | -4.03% | -39.51% | |
72 Outperform | $6.00B | 14.06 | 8.79% | 2.63% | -1.90% | -13.86% | |
69 Neutral | $7.86B | 12.37 | 29.57% | 2.60% | 0.84% | 26.17% | |
62 Neutral | $10.99B | 35.20 | 4.80% | 1.24% | 0.08% | -83.69% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $12.87B | 101.80 | 1.78% | ― | 2.16% | -85.91% | |
43 Neutral | $1.94B | -1.47 | -42.27% | ― | -3.87% | -482.29% |
* Consumer Cyclical Sector Average
VC
Visteon
90.82
24.15
36.23%
ALV
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105.24
30.68
41.14%
BWA
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116.67%
APTV
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44.36%
GT
GoodYear Tire
6.78
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LEA
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118.31
45.30
62.06%
Visteon Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Visteon Posts Strong 2025 Results, Boosts Dividend, Guides 2026
Positive
Feb 19, 2026
On Feb. 19, 2026, Visteon reported fourth-quarter and full-year 2025 results showing net sales of $948 million for the quarter and $3.77 billion for the year, record full-year adjusted EBITDA of $492 million, and strong cash generation, despite lo...
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.