NasdaqGS:VC

Stock Analysis Report

Executive Summary

Visteon Corporation engineers, designs, and manufactures cockpit electronics and connected car solutions for vehicle manufacturers worldwide.


Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Visteon's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.4%

VC

1.0%

US Auto Components

0.06%

US Market


1 Year Return

-11.2%

VC

-7.2%

US Auto Components

19.3%

US Market

Return vs Industry: VC underperformed the US Auto Components industry which returned -7.2% over the past year.

Return vs Market: VC underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

VCIndustryMarket
7 Day-5.4%1.0%0.06%
30 Day-8.4%-2.2%1.7%
90 Day-15.1%-0.7%9.0%
1 Year-11.2%-11.2%-5.9%-7.2%21.8%19.3%
3 Year-16.0%-16.0%-6.4%-15.8%49.5%39.9%
5 Year35.9%-21.3%4.6%-10.4%73.1%54.1%

Price Volatility Vs. Market

How volatile is Visteon's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Visteon undervalued compared to its fair value and its price relative to the market?

33.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VC ($79.14) is trading below our estimate of fair value ($119.52)

Significantly Below Fair Value: VC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VC is poor value based on its PE Ratio (28.3x) compared to the Auto Components industry average (17.6x).

PE vs Market: VC is poor value based on its PE Ratio (28.3x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: VC is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: VC is overvalued based on its PB Ratio (4.7x) compared to the US Auto Components industry average (1.4x).


Next Steps

Future Growth

How is Visteon forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

31.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VC's forecast earnings growth (31% per year) is above the savings rate (1.7%).

Earnings vs Market: VC's earnings (31% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VC's revenue (9.8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: VC's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VC's Return on Equity is forecast to be high in 3 years time (38.3%)


Next Steps

Past Performance

How has Visteon performed over the past 5 years?

22.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VC has high quality earnings.

Growing Profit Margin: VC's current net profit margins (2.7%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: VC's earnings have grown significantly by 22.9% per year over the past 5 years.

Accelerating Growth: VC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VC had negative earnings growth (-41.5%) over the past year, making it difficult to compare to the Auto Components industry average (-1.4%).


Return on Equity

High ROE: VC's Return on Equity (15.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Visteon's financial position?


Financial Position Analysis

Short Term Liabilities: VC's short term assets ($1.3B) exceed its short term liabilities ($762.0M).

Long Term Liabilities: VC's short term assets ($1.3B) exceed its long term liabilities ($818.0M).


Debt to Equity History and Analysis

Debt Level: VC's debt to equity ratio (67.6%) is considered high.

Reducing Debt: VC's debt to equity ratio has increased from 44.3% to 67.6% over the past 5 years.

Debt Coverage: VC's debt is well covered by operating cash flow (54.4%).

Interest Coverage: VC's interest payments on its debt are well covered by EBIT (13.8x coverage).


Balance Sheet

Inventory Level: VC has a high level of physical assets or inventory.

Debt Coverage by Assets: VC's debt is covered by short term assets (assets are 3.3x debt).


Next Steps

Dividend

What is Visteon's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate VC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate VC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Sachin Lawande (52yo)

4.7yrs

Tenure

US$7,858,920

Compensation

Mr. Sachin S. Lawande has been the Chief Executive Officer and President of Visteon Corporation since June 29, 2015. Mr. Lawande served as an Executive Vice President of Harman International Industries, In ...


CEO Compensation Analysis

Compensation vs Market: Sachin's total compensation ($USD7.86M) is above average for companies of similar size in the US market ($USD3.81M).

Compensation vs Earnings: Sachin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sachin Lawande
President4.7yrsUS$7.86m0.38% $8.5m
Sunil Bilolikar
Senior Vice President of Manufacturing Operations & Supply Chain3.2yrsUS$2.09m0.011% $247.2k
Brett Pynnonen
Senior VP & General Counsel3.9yrsUS$1.21m0.013% $298.8k
Robert Vallance
Senior Vice President of Customer Business Groups & Marketing0yrsUS$935.17k0.028% $617.3k
Jerome Rouquet
Senior VP of Finance & CFO0.08yrsno datano data
Markus Schupfner
Senior VP & CTO3.8yrsno data0.0063% $140.5k
Raman Mehta
Chief Information Officer & VP2.8yrsno datano data
Kristin Trecker
Senior VP & Chief Human Resources Officer2.1yrsno data0.00029% $6.4k
Matthew Cole
Senior Vice President of Product Delivery3.2yrsUS$1.83m0.017% $370.9k
Matthias Schulze
Senior Director & Head of ADAS3.1yrsno datano data

3.2yrs

Average Tenure

52yo

Average Age

Experienced Management: VC's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sachin Lawande
President4.7yrsUS$7.86m0.38% $8.5m
Harry Wilson
Independent Director8.6yrsUS$210.00k0.043% $949.7k
Francis Scricco
Non-Executive Chairman of the Board7.4yrsUS$350.00k0.026% $565.9k
David Treadwell
Independent Director7.5yrsUS$220.00k0.014% $316.5k
Rouzbeh Yassini-Fard
Independent Director5.1yrsUS$210.00k0.0072% $158.2k
Jeffrey Jones
Independent Director9.3yrsUS$200.00kno data
Joanne Maguire
Independent Director5.1yrsUS$200.00kno data
Robert Manzo
Independent Director7.7yrsUS$235.00k0.036% $791.4k
James Barrese
Independent Director3.1yrsUS$200.00kno data
Nomi Bergman
Independent Director3.3yrsUS$210.00k0.0036% $79.2k

6.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: VC's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Visteon Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Visteon Corporation
  • Ticker: VC
  • Exchange: NasdaqGS
  • Founded: 2000
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$2.213b
  • Shares outstanding: 27.97m
  • Website: https://www.visteon.com

Number of Employees


Location

  • Visteon Corporation
  • One Village Center Drive
  • Van Buren Township
  • Michigan
  • 48111
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VCNasdaqGS (Nasdaq Global Select)YesNew Common StockUSUSDSep 2010
VS51DB (Deutsche Boerse AG)YesNew Common StockDEEURSep 2010

Biography

Visteon Corporation engineers, designs, and manufactures cockpit electronics and connected car solutions for vehicle manufacturers worldwide. The company provides instrument clusters, including standard analog gauge clusters to high-resolution, all-digital, fully reconfigurable, 2-D, and 3-D display-based devices; information displays that integrate a range of user interface technologies and graphics management capabilities; and audio and infotainment systems that allows vehicle occupants to connect their mobile devices to the system and safely access phone functions, listen to music, stream media, and enable mobile connectivity applications. It also offers infotainment solutions, including Phoenix display audio and embedded infotainment platform; telematics control unit to enable secure connected car services, software updates, and data; SmartCore, an automotive-grade, integrated domain controller to enhance efficiency, and reduce power consumption and cost; and head-up displays (HUD), such as combiner HUD and windshield HUD that present critical information to the driver. Visteon Corporation was founded in 2000 and is headquartered in Van Buren Township, Michigan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:33
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.