APTIV PLC (APTV) Stock Fundamental Analysis
NYSE:APTV - New York Stock Exchange, Inc. - JE00BTDN8H13 - Common Stock - Currency: USD
Taking everything into account, APTV scores 5 out of 10 in our fundamental rating. APTV was compared to 81 industry peers in the Automobile Components industry. While APTV has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on APTV.
1. Profitability
1.1 Basic Checks
APTV had positive earnings in the past year.
APTV had a positive operating cash flow in the past year.
APTV had positive earnings in each of the past 5 years.
Each year in the past 5 years APTV had a positive operating cash flow.
1.2 Ratios
The Return On Assets of APTV (7.62%) is better than 90.12% of its industry peers.
The Return On Equity of APTV (20.32%) is better than 96.30% of its industry peers.
With an excellent Return On Invested Capital value of 9.95%, APTV belongs to the best of the industry, outperforming 90.12% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for APTV is in line with the industry average of 8.98%.
The last Return On Invested Capital (9.95%) for APTV is above the 3 year average (8.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 20.32% | ||
| ROIC | 9.95% |
ROA(3y)7.32%
ROA(5y)7%
ROE(3y)17.18%
ROE(5y)16.05%
ROIC(3y)8.46%
ROIC(5y)7.76%
1.3 Margins
Looking at the Profit Margin, with a value of 9.07%, APTV belongs to the top of the industry, outperforming 95.06% of the companies in the same industry.
APTV's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 10.32%, APTV perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
In the last couple of years the Operating Margin of APTV has remained more or less at the same level.
APTV has a Gross Margin of 18.83%. This is in the lower half of the industry: APTV underperforms 75.31% of its industry peers.
APTV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.32% | ||
| PM (TTM) | 9.07% | ||
| GM | 18.83% |
OM growth 3Y10.28%
OM growth 5Y0.86%
PM growth 3Y39.02%
PM growth 5Y5.62%
GM growth 3Y6.65%
GM growth 5Y0.52%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), APTV is creating value.
The number of shares outstanding for APTV has been reduced compared to 1 year ago.
Compared to 5 years ago, APTV has less shares outstanding
APTV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.22 indicates that APTV is not a great score, but indicates only limited risk for bankruptcy at the moment.
APTV's Altman-Z score of 2.22 is on the low side compared to the rest of the industry. APTV is outperformed by 60.49% of its industry peers.
The Debt to FCF ratio of APTV is 5.17, which is a neutral value as it means it would take APTV, 5.17 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.17, APTV is doing worse than 62.96% of the companies in the same industry.
APTV has a Debt/Equity ratio of 0.89. This is a neutral value indicating APTV is somewhat dependend on debt financing.
The Debt to Equity ratio of APTV (0.89) is worse than 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 2.22 |
ROIC/WACC2.18
WACC4.57%
2.3 Liquidity
A Current Ratio of 1.53 indicates that APTV should not have too much problems paying its short term obligations.
The Current ratio of APTV (1.53) is worse than 81.48% of its industry peers.
APTV has a Quick Ratio of 1.07. This is a normal value and indicates that APTV is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.07, APTV is doing worse than 79.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
APTV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.84%, which is quite impressive.
Measured over the past 5 years, APTV shows a small growth in Earnings Per Share. The EPS has been growing by 5.19% on average per year.
Looking at the last year, APTV shows a decrease in Revenue. The Revenue has decreased by -1.69% in the last year.
The Revenue has been growing slightly by 6.55% on average over the past years.
EPS 1Y (TTM)29.84%
EPS 3Y34.39%
EPS 5Y5.19%
EPS Q2Q%24.29%
Revenue 1Y (TTM)-1.69%
Revenue growth 3Y8.07%
Revenue growth 5Y6.55%
Sales Q2Q%-0.24%
3.2 Future
Based on estimates for the next years, APTV will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.63% on average per year.
The Revenue is expected to grow by 4.85% on average over the next years.
EPS Next Y14.87%
EPS Next 2Y14.44%
EPS Next 3Y14.29%
EPS Next 5Y13.63%
Revenue Next Year0.94%
Revenue Next 2Y3.03%
Revenue Next 3Y3.71%
Revenue Next 5Y4.85%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.03, the valuation of APTV can be described as very reasonable.
Based on the Price/Earnings ratio, APTV is valued a bit cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of APTV to the average of the S&P500 Index (27.85), we can say APTV is valued rather cheaply.
A Price/Forward Earnings ratio of 7.86 indicates a rather cheap valuation of APTV.
APTV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. APTV is cheaper than 64.20% of the companies in the same industry.
APTV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.03 | ||
| Fwd PE | 7.86 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as APTV.
APTV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. APTV is cheaper than 65.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.09 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of APTV may justify a higher PE ratio.
A more expensive valuation may be justified as APTV's earnings are expected to grow with 14.29% in the coming years.
PEG (NY)0.61
PEG (5Y)1.74
EPS Next 2Y14.44%
EPS Next 3Y14.29%
5. Dividend
5.1 Amount
APTV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
56.96
-0.1 (-0.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners105.9%
Inst Owner Change0.14%
Ins Owners0.59%
Ins Owner Change24.08%
Market Cap13.07B
Analysts80.67
Price Target74.45 (30.71%)
Short Float %4.63%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.12
Dividend Growth(5Y)-33.36%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.09%
Min EPS beat(2)3.45%
Max EPS beat(2)6.73%
EPS beat(4)4
Avg EPS beat(4)7.85%
Min EPS beat(4)3.45%
Max EPS beat(4)12.06%
EPS beat(8)7
Avg EPS beat(8)7.25%
EPS beat(12)10
Avg EPS beat(12)2.09%
EPS beat(16)12
Avg EPS beat(16)2.78%
Revenue beat(2)0
Avg Revenue beat(2)-5.08%
Min Revenue beat(2)-8.47%
Max Revenue beat(2)-1.7%
Revenue beat(4)0
Avg Revenue beat(4)-5.24%
Min Revenue beat(4)-8.47%
Max Revenue beat(4)-1.7%
Revenue beat(8)2
Avg Revenue beat(8)-2.31%
Revenue beat(12)5
Avg Revenue beat(12)-1.1%
Revenue beat(16)9
Avg Revenue beat(16)0.44%
PT rev (1m)-8.8%
PT rev (3m)-3.75%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)-2.15%
EPS NY rev (3m)1.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.16%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.03 | ||
| Fwd PE | 7.86 | ||
| P/S | 0.66 | ||
| P/FCF | 8.09 | ||
| P/OCF | 5.34 | ||
| P/B | 1.49 | ||
| P/tB | 8.01 | ||
| EV/EBITDA | 6.63 |
EPS(TTM)6.31
EY11.08%
EPS(NY)7.25
Fwd EY12.73%
FCF(TTM)7.04
FCFY12.36%
OCF(TTM)10.66
OCFY18.72%
SpS85.91
BVpS38.34
TBVpS7.11
PEG (NY)0.61
PEG (5Y)1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 20.32% | ||
| ROCE | 11.1% | ||
| ROIC | 9.95% | ||
| ROICexc | 10.89% | ||
| ROICexgc | 19.02% | ||
| OM | 10.32% | ||
| PM (TTM) | 9.07% | ||
| GM | 18.83% | ||
| FCFM | 8.2% |
ROA(3y)7.32%
ROA(5y)7%
ROE(3y)17.18%
ROE(5y)16.05%
ROIC(3y)8.46%
ROIC(5y)7.76%
ROICexc(3y)9.26%
ROICexc(5y)8.99%
ROICexgc(3y)16.73%
ROICexgc(5y)15.2%
ROCE(3y)9.44%
ROCE(5y)8.65%
ROICexcg growth 3Y8.25%
ROICexcg growth 5Y-4.19%
ROICexc growth 3Y2.51%
ROICexc growth 5Y-5.11%
OM growth 3Y10.28%
OM growth 5Y0.86%
PM growth 3Y39.02%
PM growth 5Y5.62%
GM growth 3Y6.65%
GM growth 5Y0.52%
F-Score6
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 5.17 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 86.1% | ||
| Cap/Sales | 4.21% | ||
| Interest Coverage | 7.12 | ||
| Cash Conversion | 81.56% | ||
| Profit Quality | 90.43% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 2.22 |
F-Score6
WACC4.57%
ROIC/WACC2.18
Cap/Depr(3y)98.73%
Cap/Depr(5y)90.34%
Cap/Sales(3y)4.52%
Cap/Sales(5y)4.39%
Profit Quality(3y)67.79%
Profit Quality(5y)73.23%
High Growth Momentum
Growth
EPS 1Y (TTM)29.84%
EPS 3Y34.39%
EPS 5Y5.19%
EPS Q2Q%24.29%
EPS Next Y14.87%
EPS Next 2Y14.44%
EPS Next 3Y14.29%
EPS Next 5Y13.63%
Revenue 1Y (TTM)-1.69%
Revenue growth 3Y8.07%
Revenue growth 5Y6.55%
Sales Q2Q%-0.24%
Revenue Next Year0.94%
Revenue Next 2Y3.03%
Revenue Next 3Y3.71%
Revenue Next 5Y4.85%
EBIT growth 1Y13.81%
EBIT growth 3Y19.18%
EBIT growth 5Y7.47%
EBIT Next Year39.89%
EBIT Next 3Y16.18%
EBIT Next 5YN/A
FCF growth 1Y63.23%
FCF growth 3Y38.29%
FCF growth 5Y13.9%
OCF growth 1Y29.01%
OCF growth 3Y26.03%
OCF growth 5Y8.54%