APTIV PLC (APTV) Stock Fundamental Analysis
NYSE:APTV - New York Stock Exchange, Inc. - JE00BTDN8H13 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to APTV. 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. APTV may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
APTV had positive earnings in the past year.
In the past year APTV had a positive cash flow from operations.
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 of 7.62%. This is amongst the best in the industry. APTV outperforms 90.12% of its industry peers.
Looking at the Return On Equity, with a value of 20.32%, APTV belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
APTV has a better Return On Invested Capital (9.95%) than 90.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for APTV is in line with the industry average of 8.88%.
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
APTV's Profit Margin of 9.07% is amongst the best of the industry. APTV outperforms 95.06% of its industry peers.
In the last couple of years the Profit Margin of APTV has grown nicely.
APTV has a Operating Margin (10.32%) which is in line with its industry peers.
In the last couple of years the Operating Margin of APTV has remained more or less at the same level.
APTV has a worse Gross Margin (18.83%) than 75.31% of its industry peers.
In the last couple of years the Gross Margin of APTV has remained more or less at the same level.
| 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
APTV has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
APTV has less shares outstanding than it did 1 year ago.
The number of shares outstanding for APTV has been reduced compared to 5 years ago.
The debt/assets ratio for APTV is higher compared to a year ago.
2.2 Solvency
APTV has an Altman-Z score of 2.17. This is not the best score and indicates that APTV is in the grey zone with still only limited risk for bankruptcy at the moment.
APTV's Altman-Z score of 2.17 is on the low side compared to the rest of the industry. APTV is outperformed by 62.96% 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.
APTV's Debt to FCF ratio of 5.17 is on the low side compared to the rest of the industry. APTV is outperformed by 62.96% of its industry peers.
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 | 2.17 |
ROIC/WACC2.23
WACC4.46%
2.3 Liquidity
APTV has a Current Ratio of 1.53. This is a normal value and indicates that APTV is financially healthy and should not expect problems in meeting its short term obligations.
APTV has a worse Current ratio (1.53) 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.
APTV has a Quick ratio of 1.07. This is in the lower half of the industry: APTV underperforms 79.01% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 5.19% on average over the past years.
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
APTV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.63% yearly.
APTV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.85% yearly.
EPS Next Y14.87%
EPS Next 2Y14.44%
EPS Next 3Y14.29%
EPS Next 5Y13.63%
Revenue Next Year1.12%
Revenue Next 2Y3.13%
Revenue Next 3Y3.54%
Revenue Next 5Y4.85%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.19 indicates a reasonable valuation of APTV.
Based on the Price/Earnings ratio, APTV is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
APTV is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.13 indicates a rather cheap valuation of APTV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APTV indicates a somewhat cheap valuation: APTV is cheaper than 66.67% of the companies listed 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 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 7.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APTV is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of APTV indicates a somewhat cheap valuation: APTV is cheaper than 67.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.34 | ||
| EV/EBITDA | 6.22 |
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.
APTV has a very decent profitability rating, which 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)0.55
PEG (5Y)1.58
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 |
51.71
+1 (+1.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners105.9%
Inst Owner Change0.09%
Ins Owners0.59%
Ins Owner Change23.08%
Market Cap11.86B
Analysts80.67
Price Target82.49 (59.52%)
Short Float %4.44%
Short Ratio2.95
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)1.06%
PT rev (3m)6.65%
EPS NQ rev (1m)0.97%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)-1.61%
EPS NY rev (3m)1.57%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)-3.16%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 7.13 | ||
| P/S | 0.6 | ||
| P/FCF | 7.34 | ||
| P/OCF | 4.85 | ||
| P/B | 1.35 | ||
| P/tB | 7.27 | ||
| EV/EBITDA | 6.22 |
EPS(TTM)6.31
EY12.2%
EPS(NY)7.25
Fwd EY14.02%
FCF(TTM)7.04
FCFY13.62%
OCF(TTM)10.66
OCFY20.62%
SpS85.91
BVpS38.34
TBVpS7.11
PEG (NY)0.55
PEG (5Y)1.58
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 | 2.17 |
F-Score6
WACC4.46%
ROIC/WACC2.23
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 Year1.12%
Revenue Next 2Y3.13%
Revenue Next 3Y3.54%
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%