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Visteon (VC)
NASDAQ:VC
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Visteon (VC) AI Stock Analysis

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Visteon

(NASDAQ:VC)

Rating:82Outperform
Price Target:
$145.00
▲(15.88% 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
Bookings
Visteon reported strong year-to-date bookings of $3.9 billion, tracking to exceed its full-year target of $6.0 billion.
Growth and Diversification
Visteon's growth is supported by increasing digital electronics content per vehicle and share gain with Japanese OEMs.
Organic Growth
Visteon is one of the few Suppliers poised to deliver solid organic growth through 2026.
Negative Factors
Market Challenges
Visteon has faced headwinds from slower EV production in the US and customer exposure in China.
Production and Exposure
Challenges tied to China and EV/BMS appear well understood, and while they are not reversing anytime soon, they are not seen as major headwinds going forward.

Visteon (VC) vs. SPDR S&P 500 ETF (SPY)

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 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 Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
Visteon demonstrated strong financial and operational performance, highlighted by increased net sales, significant new business wins, and strategic investments. However, challenges remain in the BMS segment and the Chinese market, which affected growth. Overall, the positive aspects of the company's performance outweigh the challenges.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Visteon reported net sales of $969 million, higher than anticipated, driven by strong demand for digital cockpit products. Adjusted EBITDA was $134 million with a margin of 13.8%, and adjusted free cash flow was $67 million.
New Product Launches and Business Wins
The company launched 21 new products and won $2 billion in new business in the quarter, bringing the year-to-date total to just under $4 billion. Key wins include a 48-inch OLED display for a German luxury automaker and a cockpit domain controller for TRATON.
Increased Guidance and Dividend Initiation
Visteon reinstated and increased guidance for the full year and announced a quarterly dividend, highlighting confidence in generating free cash flow and commitment to returning capital to shareholders.
Operational Efficiency and Strategic Investments
The company expanded profit margins through productivity measures and continued investing in vertical integration and engineering services, including acquiring a German engineering services company.
Negative Updates
Decline in BMS Sales
Battery management system (BMS) sales came in lower than anticipated and were down year-over-year due to high sales in the previous year's Q2 when GM and Stellantis ramped up battery manufacturing.
Challenges in the Chinese Market
Sales in China were down year-over-year due to a market share shift towards domestic OEMs, although Q2 sales were higher sequentially. China represented a significant drag on global growth, lowering it by 5 percentage points in Q2.
Company Guidance
During Visteon's second quarter 2025 earnings call, the company reported net sales of $969 million, surpassing initial expectations due to strong demand for digital cockpit products, particularly in North America and Europe. Despite lower battery management system (BMS) sales and market dynamics in China causing a slight underperformance relative to customer vehicle production, the company anticipates a reversal in the third quarter, driven by new product launches. Adjusted EBITDA reached $134 million with a margin of 13.8%, and adjusted free cash flow was $67 million. Visteon launched 21 new products, expanded profit margins, and secured $2 billion in new business during the quarter. The full-year guidance has been reinstated and increased, with anticipated sales growth over the market in the mid-single digits, despite a cautious industry environment.

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
88
Very Positive
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
85
Very Positive
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
90
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.82B3.87B3.95B3.76B2.77B2.55B
Gross Profit544.00M531.00M487.00M368.00M254.00M245.00M
EBITDA376.00M409.00M378.00M297.00M199.00M101.00M
Net Income291.00M274.00M486.00M124.00M41.00M-56.00M
Balance Sheet
Total Assets3.19B2.86B2.73B2.45B2.23B2.27B
Cash, Cash Equivalents and Short-Term Investments668.00M623.00M515.00M520.00M452.00M496.00M
Total Debt442.00M426.00M445.00M477.00M498.00M527.00M
Total Liabilities1.69B1.55B1.60B1.68B1.62B1.76B
Stockholders Equity1.42B1.23B1.04B675.00M516.00M387.00M
Cash Flow
Free Cash Flow403.00M290.00M142.00M86.00M-12.00M64.00M
Operating Cash Flow466.00M427.00M267.00M167.00M58.00M168.00M
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 Price125.13
Price Trends
50DMA
113.82
Positive
100DMA
98.50
Positive
200DMA
91.75
Positive
Market Momentum
MACD
3.49
Positive
RSI
64.38
Neutral
STOCH
52.28
Neutral
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 125.13 is above the 20-day moving average (MA) of 122.32, above the 50-day MA of 113.82, and above the 200-day MA of 91.75, indicating a bullish trend. The MACD of 3.49 indicates Positive momentum. The RSI at 64.38 is Neutral, neither overbought nor oversold. The STOCH value of 52.28 is Neutral, 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$3.42B11.9622.96%0.22%-3.26%-45.84%
79
Outperform
$9.63B13.6229.99%2.35%-0.98%21.64%
79
Outperform
$17.52B13.3315.52%-2.47%-43.12%
76
Outperform
$5.87B12.899.51%2.84%-3.12%-8.23%
74
Outperform
$7.46B10.1347.08%1.19%2.70%15.17%
67
Neutral
$9.49B46.823.66%1.14%-2.12%-69.42%
61
Neutral
$17.97B12.87-5.30%2.97%1.26%-14.45%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VC
Visteon
125.13
28.59
29.61%
ALSN
Allison Transmission Holdings
90.02
4.71
5.52%
ALV
Autoliv
124.69
31.31
33.53%
BWA
BorgWarner
44.03
12.20
38.33%
APTV
Aptiv
80.44
11.95
17.45%
LEA
Lear
111.05
4.17
3.90%

Visteon Corporate Events

Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Visteon Reports Strong Q2 2025 Financial Results
Positive
Jul 24, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Visteon Appoints Marjorie T. Sennett to Board
Positive
Jul 18, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Visteon Reappoints Francis Scricco as Board Chairman
Positive
Jun 11, 2025

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.

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.Date of analysis: Aug 23, 2025