Taking everything into account, APTV scores 6 out of 10 in our fundamental rating. APTV was compared to 42 industry peers in the Automobile Components industry. While APTV has a great profitability rating, there are some minor concerns on its financial health. APTV may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, APTV could be worth investigating further for value investing!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year APTV was profitable.
APTV had a positive operating cash flow in the past year.
APTV had positive earnings in each of the past 5 years.
In the past 5 years APTV always reported a positive cash flow from operatings.

1.2 Ratios

APTV has a Return On Assets (1.26%) which is comparable to the rest of the industry.
APTV has a better Return On Equity (3.18%) than 61.90% of its industry peers.
With an excellent Return On Invested Capital value of 10.13%, APTV belongs to the best of the industry, outperforming 85.71% 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 9.10%.
The 3 year average ROIC (8.46%) for APTV is below the current ROIC(10.13%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	1.26%
ROE	3.18%
ROIC	10.13%

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

The Profit Margin of APTV (1.46%) is better than 61.90% of its industry peers.
APTV's Profit Margin has improved in the last couple of years.
The Operating Margin of APTV (10.44%) is better than 85.71% of its industry peers.
APTV's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 19.34%, APTV is in line with its industry, outperforming 47.62% of the companies in the same industry.
APTV's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	10.44%
PM (TTM)	1.46%
GM	19.34%

OM growth 3Y10.28%

OM growth 5Y0.86%

PM growth 3Y39.02%

PM growth 5Y5.62%

GM growth 3Y6.65%

GM growth 5Y0.52%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), APTV is creating value.
APTV has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, APTV has less shares outstanding
Compared to 1 year ago, APTV has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.45 indicates that APTV is not a great score, but indicates only limited risk for bankruptcy at the moment.
APTV has a Altman-Z score (2.45) which is comparable to the rest of the industry.
The Debt to FCF ratio of APTV is 4.31, which is a neutral value as it means it would take APTV, 4.31 years of fcf income to pay off all of its debts.
APTV has a better Debt to FCF ratio (4.31) than 69.05% of its industry peers.
APTV has a Debt/Equity ratio of 0.82. This is a neutral value indicating APTV is somewhat dependend on debt financing.
APTV's Debt to Equity ratio of 0.82 is on the low side compared to the rest of the industry. APTV is outperformed by 69.05% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.82
Debt/FCF	4.31
Altman-Z	2.45

ROIC/WACC2.24

WACC4.52%

2.3 Liquidity

A Current Ratio of 1.79 indicates that APTV should not have too much problems paying its short term obligations.
APTV has a Current ratio (1.79) which is in line with its industry peers.
A Quick Ratio of 1.26 indicates that APTV should not have too much problems paying its short term obligations.
APTV has a Quick ratio (1.26) which is in line with its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.79
Quick Ratio	1.26

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 29.31% over the past year.
The Earnings Per Share has been growing slightly by 5.19% on average over the past years.
APTV shows a small growth in Revenue. In the last year, the Revenue has grown by 2.16%.
The Revenue has been growing slightly by 6.55% on average over the past years.

EPS 1Y (TTM)29.31%

EPS 3Y34.39%

EPS 5Y5.19%

EPS Q2Q%18.58%

Revenue 1Y (TTM)2.16%

Revenue growth 3Y8.07%

Revenue growth 5Y6.55%

Sales Q2Q%7.38%

3.2 Future

APTV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.94% yearly.
Based on estimates for the next years, APTV will show a small growth in Revenue. The Revenue will grow by 5.20% on average per year.

EPS Next Y25.65%

EPS Next 2Y17.03%

EPS Next 3Y15.39%

EPS Next 5Y14.94%

Revenue Next Year3.25%

Revenue Next 2Y3.55%

Revenue Next 3Y4.01%

Revenue Next 5Y5.2%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

APTV is valuated reasonably with a Price/Earnings ratio of 9.81.
Based on the Price/Earnings ratio, APTV is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of APTV to the average of the S&P500 Index (28.30), we can say APTV is valued rather cheaply.
A Price/Forward Earnings ratio of 8.77 indicates a reasonable valuation of APTV.
Based on the Price/Forward Earnings ratio, APTV is valued cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.57. APTV is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	9.81
Fwd PE	8.77

4.2 Price Multiples

66.67% of the companies in the same industry are more expensive than APTV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, APTV is valued a bit cheaper than the industry average as 73.81% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	9.24
EV/EBITDA	7.45

4.3 Compensation for Growth

APTV's 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 15.39% in the coming years.