| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 4/6 |
| Past Performance | 0/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
APTV Stock Overview
Aptiv PLC designs, manufacturers, and sells vehicle components worldwide.
Aptiv PLC Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$103.77 |
| 52 Week High | US$180.81 |
| 52 Week Low | US$84.14 |
| Beta | 2 |
| 1 Month Change | 5.47% |
| 3 Month Change | 10.89% |
| 1 Year Change | -32.90% |
| 3 Year Change | 29.91% |
| 5 Year Change | 10.09% |
| Change since IPO | 386.50% |
Recent News & Updates
Aptiv: Challenging Quarter, Uncertain Second-Half Outlook
2Q 2022 has been a challenging quarter for Aptiv, as its normalized EPS dropped by -69% YoY and came in -64% below the market's consensus expectations. The outlook for APTV in 2H 2022 is murky, with positives associated with customer cost recoveries offset by negatives linked to weakness in Europe and Motional's losses. I have a Neutral view on Aptiv, which translates into a Hold investment rating. Elevator Pitch I assign a Hold investment rating to Aptiv PLC's (APTV) stock, which describes itself as a provider of "electrical, electronic and active safety technology solutions" for the automotive market in its 10-K filing. The weaker-than-expected top line performance for the Chinese and European markets, and higher-than-expected costs were the key reasons for APTV's Q2 2022 earnings miss. It is tough to predict how Aptiv will perform in 2H 2022, considering a mix of positive and negative factors. The uncertainty leads me to a Neutral view and Hold rating for Aptiv. Recent Financial Performance Disappointed The Market APTV's most recent financial results for the second quarter of 2022 was a disappointment for investors. Aptiv's Q2 2022 revenue of $4,057 million came in -1% below the market's consensus top line estimate of $4.08 billion, and its second-quarter non-GAAP earnings per share of $0.22 turned out to be -64% lower as compared to the Wall Street analysts' consensus normalized EPS projection of $0.61. The company's headline revenue rose by +7% YoY in Q2 2022, but this was equivalent to a -3% QoQ contraction. Also, while APTV's adjusted revenue (excluding changes in top line due to commodity price and foreign exchange fluctuations) increased by +9% YoY in the recent quarter, some of its market didn't do well. Specifically, a +21% YoY growth in adjusted revenue for the North American market was partially offset by a more modest +4% YoY increase in adjusted revenue for the European market and a -2% YoY decline in adjusted revenue for the Chinese market in Q2 2022. The Q2 2022 non-GAAP EPS of $0.22 for Aptiv also represented a -69% fall in comparison with the company's Q2 2021 adjusted EPS of $0.71, as APTV suffered from weaker profitability. According to its recent quarterly earnings presentation, Aptiv's adjusted EBITDA margin and operating margin decreased by -4.1 percentage points and -3.6 percentage points to 9.0% and 5.3%, respectively in the second quarter of this year. At the company's Q2 2022 investor briefing, APTV highlighted that its top line growth was affected by "shutdowns in China and some softening in vehicle production schedules in Europe." With regards to profitability, Aptiv was negatively impacted by higher costs relating to inflation and supply chain issues, just like other automotive suppliers. Customer Cost Recoveries Are Expected To Boost APTV's 2H 2022 Profitability Aptiv's Q2 2022 profit margins could have been higher, if not for lower-than-expected customer cost recoveries in the recent quarter. In its second-quarter results presentation, APTV noted that the "timing of material inflation recoveries" was a key factor contributing to the company's below-expectations profitability for Q2 2022. Aptiv also mentioned at the company's Q2 2022 earnings call that "cost recoveries we have already negotiated with customers and are coming in above plan", and emphasized that it "will have a more significant impact on second half profitability." The positive expectations regarding the effects of customer cost recoveries are validated by both APTV's management guidance and the sell-side's consensus financial projections. The company expects its normalized EBITDA margin and operating profit margin to be in the 12.7%-13.4% and 9.0%-9.7% ranges, respectively. In comparison, Aptiv's 1H 2022 adjusted EBITDA and operating margins were substantially lower at 10.2% and 6.5%, respectively. This implies that the management sees the company's profitability improving substantially in the second half of the year. Separately, the sell-side analysts are forecasting that Aptiv's adjusted operating profit margin will expand from 5.3% in the second quarter of 2022 to 11.0% and 12.4% for the third quarter and fourth quarter of the current year, respectively as per S&P Capital IQ. The Wall Street's consensus numbers also suggest that APTV's normalized EBITDA margin is expected to rise from 9.0% in Q2 2022 to 14.8% for Q3 2022 and 16.0% for Q4 2022. European Market Weakness And Motional's Losses Are Key Headwinds As discussed in the prior section, customer cost recoveries should boost Aptiv's operating profitability for 2H 2022. However, the dim growth prospects for Europe and continued losses for the Motional autonomous driving joint venture will be a drag on APTV's top line and bottom line, respectively in the near term. In an earlier section of the article, I highlighted that Europe was one of the key markets (alongside China) that didn't perform well for Aptiv in Q2 2022 in terms of adjusted revenue growth. APTV also noted in its second-quarter earnings presentation that it reduced its full-year FY 2022 revenue guidance by -4% from $17,950 million previously to $17,150 million now, on the basis of a "weaker Europe outlook" which is indicative of "lower customer schedules." Notably, a recent August 15, 2022 Bloomberg article mentioned that "the risk of a euro-area recession has reached the highest level since November 2020" based on a survey of economists. If a recession does materialize in the European region, it will naturally be negative for automotive demand in this specific market. There might be early warning signs for the automotive market in Europe, with Aptiv revealing at its Q2 2022 results call that it observed "a reduction in European customer schedules heading into" 2H 2022.
Aptiv Q2 2022 Earnings Preview
Aptiv (NYSE:APTV) is scheduled to announce Q2 earnings results on Thursday, August 4th, before market open. The consensus EPS Estimate is $0.60 (flat Y/Y) and the consensus Revenue Estimate is $4.08B (+7.4% Y/Y). Over the last 2 years, APTV has beaten EPS estimates 88% of the time and has beaten revenue estimates 100% of the time. Over the last 3 months, EPS estimates have seen 2 upward revisions and 17 downward. Revenue estimates have seen 2 upward revisions and 16 downward.
Shareholder Returns
| APTV | US Auto Components | US Market | |
|---|---|---|---|
| 7D | -6.9% | -0.07% | 1.4% |
| 1Y | -32.9% | -18.9% | -8.4% |
Return vs Industry: APTV underperformed the US Auto Components industry which returned -18.9% over the past year.
Return vs Market: APTV underperformed the US Market which returned -8.4% over the past year.
Price Volatility
| APTV volatility | |
|---|---|
| APTV Average Weekly Movement | 8.1% |
| Auto Components Industry Average Movement | 8.1% |
| Market Average Movement | 7.6% |
| 10% most volatile stocks in US Market | 17.1% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: APTV is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: APTV's weekly volatility (8%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2011 | 155,000 | Kevin Clark | https://www.aptiv.com |
Aptiv PLC designs, manufacturers, and sells vehicle components worldwide. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates in two segment, Signal and Power Solutions, and Advanced Safety and User Experience.
Aptiv PLC Fundamentals Summary
| APTV fundamental statistics | |
|---|---|
| Market Cap | US$28.92b |
| Earnings (TTM) | US$113.00m |
| Revenue (TTM) | US$16.02b |
248.8x
P/E Ratio1.8x
P/S RatioIs APTV overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| APTV income statement (TTM) | |
|---|---|
| Revenue | US$16.02b |
| Cost of Revenue | US$13.88b |
| Gross Profit | US$2.14b |
| Other Expenses | US$2.03b |
| Earnings | US$113.00m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.42 |
| Gross Margin | 13.36% |
| Net Profit Margin | 0.70% |
| Debt/Equity Ratio | 77.6% |
How did APTV perform over the long term?
See historical performance and comparison