NYSE:APTV

Stock Analysis Report

Executive Summary

Aptiv PLC, together with its subsidiaries, designs and manufacturers vehicle components, and provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets.

Rewards

Trading at 2.8% below its fair value

Earnings are forecast to grow 13.81% per year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Mediocre balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.2%

APTV

1.2%

US Auto Components

1.5%

US Market


1 Year Return

9.1%

APTV

-6.8%

US Auto Components

20.1%

US Market

Return vs Industry: APTV exceeded the US Auto Components industry which returned -6.8% over the past year.

Return vs Market: APTV underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

APTVIndustryMarket
7 Day1.2%1.2%1.5%
30 Day-3.5%-4.9%1.4%
90 Day-3.1%-2.8%8.7%
1 Year10.2%9.1%-5.4%-6.8%22.7%20.1%
3 Year44.7%17.0%-7.4%-16.6%50.1%40.5%
5 Year42.2%11.5%3.0%-11.8%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: APTV ($88.32) is trading below our estimate of fair value ($90.86)

Significantly Below Fair Value: APTV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: APTV is poor value based on its PE Ratio (22.9x) compared to the Auto Components industry average (17.3x).

PE vs Market: APTV is poor value based on its PE Ratio (22.9x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: APTV is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: APTV is overvalued based on its PB Ratio (5.9x) compared to the US Auto Components industry average (1.3x).


Next Steps

Future Growth

How is Aptiv forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APTV's forecast earnings growth (13.8% per year) is above the savings rate (1.7%).

Earnings vs Market: APTV's earnings (13.8% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: APTV's earnings are forecast to grow, but not significantly.

Revenue vs Market: APTV's revenue (5.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: APTV's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: APTV's Return on Equity is forecast to be high in 3 years time (27.5%)


Next Steps

Past Performance

How has Aptiv performed over the past 5 years?

-4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APTV has high quality earnings.

Growing Profit Margin: APTV's current net profit margins (6.9%) are lower than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: APTV's earnings have declined by -4.4% per year over the past 5 years.

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

Earnings vs Industry: APTV had negative earnings growth (-7.2%) over the past year, making it difficult to compare to the Auto Components industry average (-1.4%).


Return on Equity

High ROE: Whilst APTV's Return on Equity (25.16%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aptiv's financial position?


Financial Position Analysis

Short Term Liabilities: APTV's short term assets ($5.3B) exceed its short term liabilities ($4.1B).

Long Term Liabilities: APTV's short term assets ($5.3B) do not cover its long term liabilities ($5.4B).


Debt to Equity History and Analysis

Debt Level: APTV's debt to equity ratio (108.3%) is considered high.

Reducing Debt: APTV's debt to equity ratio has increased from 80.7% to 108.3% over the past 5 years.

Debt Coverage: APTV's debt is well covered by operating cash flow (37.4%).

Interest Coverage: APTV's interest payments on its debt are well covered by EBIT (9.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: APTV's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

1.00%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: APTV's dividend (1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: APTV's dividend (1%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, APTV has been paying a dividend for less than 10 years.

Growing Dividend: APTV's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.8%), APTV's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: APTV's dividends in 3 years are forecast to be well covered by earnings (15.4% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Kevin Clark (57yo)

4.9yrs

Tenure

US$14,123,103

Compensation

Mr. Kevin P. Clark has been the Chief Executive Officer and President of Aptiv PLC (Formerly, Delphi Automotive PLC) since March 1, 2015. Mr. Clark served as the Chief Operating Officer of Delphi Automotiv ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD14.12M) is above average for companies of similar size in the US market ($USD10.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Clark
President4.9yrsUS$14.12m0.35% $79.6m
Joseph Massaro
Senior VP & CFO3.9yrsUS$4.71m0.046% $10.5m
David Sherbin
Senior VP14.3yrsUS$2.90m0.033% $7.5m
David Paja
Senior VP & President of Advanced Safety and User Experience3yrsUS$3.00m0.0027% $615.5k
William Guggina
Vice President of Global Operations5.6yrsno datano data
Allan Brazier
VP & Chief Accounting Officer9yrsno data0.0083% $1.9m
Glen De Vos
Senior VP & CTO2.9yrsno data0.019% $4.2m
Matthew Peterson
Senior VP & Chief Information Officer5yrsno datano data
Elena Rosman
Vice President of Investor Relations4.1yrsno datano data
Michael Gassen
Senior VP of Sales and President of Europe0yrsno datano data

4.9yrs

Average Tenure

55.5yo

Average Age

Experienced Management: APTV's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Clark
President4.9yrsUS$14.12m0.35% $79.6m
Nancy Cooper
Independent Director2yrsUS$251.77k0.00062% $139.8k
Rajiv Gupta
Independent Chairman of the Board4.9yrsUS$500.03k0.013% $2.8m
Nicholas Donofrio
Independent Director10.2yrsUS$280.02k0.048% $10.7m
Lawrence Zimmerman
Independent Director10.3yrsUS$305.06k0.0070% $1.6m
Hamid Malaye
Member of Technology Advisory Council0yrsno datano data
Sean Mahoney
Independent Director10.3yrsUS$265.02k0.0046% $1.0m
Magnus Jonsson
Member of Technology Advisory Council0yrsno datano data
Jens Hadler
Member of Technology Advisory Council0yrsno datano data
Ma Jun
Member of Technology Advisory Council0yrsno datano data

7.5yrs

Average Tenure

64yo

Average Age

Experienced Board: APTV's board of directors are considered experienced (7.5 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Aptiv PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aptiv PLC
  • Ticker: APTV
  • Exchange: NYSE
  • Founded: 2011
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$22.547b
  • Shares outstanding: 255.29m
  • Website: https://www.aptiv.com

Number of Employees


Location

  • Aptiv PLC
  • 5 Hanover Quay
  • Grand Canal Dock
  • Dublin
  • Co. Dublin
  • 2
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APTVNYSE (New York Stock Exchange)YesOrdinary shares USUSDNov 2011
D7ADB (Deutsche Boerse AG)YesOrdinary shares DEEURNov 2011
0YCPLSE (London Stock Exchange)YesOrdinary shares GBUSDNov 2011
APTV NBMV (Bolsa Mexicana de Valores)YesOrdinary shares MXMXNNov 2011
APTV34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 0.5 COM USD0.01BRBRLMay 2019

Biography

Aptiv PLC, together with its subsidiaries, designs and manufacturers vehicle components, and provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segment, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle’s electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. The Advanced Safety and User Experience segment provides critical components, systems integration and advanced software development for vehicle safety, security, and comfort and convenience, including sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, and autonomous driving technologies. It serves automotive original equipment manufacturers. The company operates in North America, Europe, the Middle East, Africa, and South America. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was founded in 2011 and is based in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 01:22
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.