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. APTV has an excellent profitability rating, but there are some minor concerns on its financial health. APTV may be a bit undervalued, certainly considering the very reasonable score on growth This makes APTV very considerable for value investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
Each year in the past 5 years APTV has been profitable.
Each year in the past 5 years APTV had a positive operating cash flow.

1.2 Ratios

APTV's Return On Assets of 1.26% is in line compared to the rest of the industry. APTV outperforms 54.76% of its industry peers.
The Return On Equity of APTV (3.18%) is better than 61.90% of its industry peers.
APTV has a Return On Invested Capital of 10.13%. This is amongst the best in the industry. APTV outperforms 85.71% 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 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

APTV has a better Profit Margin (1.46%) than 61.90% of its industry peers.
APTV's Profit Margin has improved in the last couple of years.
APTV's Operating Margin of 10.44% is amongst the best of the industry. APTV outperforms 85.71% of 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 Gross Margin (19.34%) which is comparable to the rest of the industry.
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	10.44%
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

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.
APTV has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, APTV has a worse debt to assets ratio.

2.2 Solvency

APTV has an Altman-Z score of 2.43. 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.
The Altman-Z score of APTV (2.43) is comparable to the rest of the industry.
APTV has a debt to FCF ratio of 4.31. This is a neutral value as APTV would need 4.31 years to pay back of all of its debts.
APTV has a better Debt to FCF ratio (4.31) than 69.05% of its industry peers.
A Debt/Equity ratio of 0.82 indicates that APTV is somewhat dependend on debt financing.
APTV has a worse Debt to Equity ratio (0.82) than 69.05% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.82
Debt/FCF	4.31
Altman-Z	2.43

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.
The Current ratio of APTV (1.79) is comparable to the rest of the industry.
A Quick Ratio of 1.26 indicates that APTV should not have too much problems paying its short term obligations.
APTV's Quick ratio of 1.26 is in line compared to the rest of the industry. APTV outperforms 54.76% of 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.
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.
APTV shows a small growth in Revenue. In the last year, the Revenue has grown by 2.16%.
Measured over the past years, APTV shows a small growth in Revenue. The Revenue has been growing by 6.55% on average per year.

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

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

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

APTV is valuated reasonably with a Price/Earnings ratio of 9.98.
Compared to the rest of the industry, the Price/Earnings ratio of APTV indicates a rather cheap valuation: APTV is cheaper than 90.48% of the companies listed in the same industry.
APTV is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.92, which indicates a very decent valuation of APTV.
85.71% of the companies in the same industry are more expensive than APTV, based on the Price/Forward Earnings ratio.
APTV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.

		Industry Rank	Sector Rank
PE	9.98
Fwd PE	8.92

4.2 Price Multiples

69.05% 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 76.19% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	9.39
EV/EBITDA	7.29

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 15.39% in the coming years.