One-glance verdict
Undervalued
$124.19 our estimate vs market $43.65
Wall Street consensus: $64.33 (-48.2% lower than our fair-value estimate)
65% below our estimate, below the bear case
Fundamentals snapshot
Aptiv PLC
APTV · NYQ · Consumer Cyclical · Auto Parts
Current price
$43.65
52-week range
$41.88 - $88.93
Market cap
$9.06B
Balance sheet
Watch
5.59x Adequate
Net debt $4.92B. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 15.0% over 3 years.
- Risk Stock trades 4.0% above its 5-year average P/E.
What this company does
Aptiv PLC
Aptiv PLC makes the brains and the nervous system for cars, selling technology like sensors and computer systems that help cars see and make decisions, as well as the wiring that connects everything. Most of its money comes from these advanced auto parts and software, which is important because it shows how much car companies rely on Aptiv to build safer and smarter vehicles.
How the company got here
Aptiv PLC has a history rooted in the automotive industry, originally established as part of General Motors in 1994. It later became Delphi Automotive and underwent significant restructuring, including a bankruptcy filing in 2005. In 2017, Delphi Automotive spun off its powertrain and aftermarket businesses, rebranding the remaining technology-focused entity as Aptiv PLC. This strategic move signaled a shift towards higher-value technologies like software and connectivity, aiming to position the company for the future of mobility. Aptiv has since made several key acquisitions, including nuTonomy for autonomous driving software and Wind River for intelligent edge software, further solidifying its focus on advanced automotive technology.
What it actually does
Aptiv PLC is a global technology company that designs, develops, and manufactures advanced electrical and electronic components and systems, along with safety solutions, primarily for the automotive industry. They provide the underlying hardware and software architecture that makes modern vehicles function, focusing on areas like vehicle safety, connectivity, and electrification. Essentially, Aptiv creates the sophisticated internal 'nervous system' of cars, enabling features from basic power distribution to advanced driver-assistance systems and autonomous driving capabilities.
Signal and Power Solutions
This segment is the backbone of a vehicle's electrical system, providing the essential components that distribute power and data throughout the car. Think of it as the wiring and connectors that allow everything from the headlights to the engine control unit to communicate and receive electricity. Key products include wiring harnesses (the bundles of wires that connect various electronic components), connectors, and cable management solutions. This segment also offers high-voltage solutions crucial for electric and hybrid vehicles, ensuring safe and efficient power delivery for these advanced powertrains. It's a foundational business, as every vehicle, regardless of its complexity, needs these fundamental electrical pathways.
Advanced Safety and User Experience
This segment focuses on the technologies that make driving safer and more enjoyable. It encompasses a range of products designed to enhance vehicle safety, support autonomous driving features, and improve the overall interaction between the driver, passengers, and the vehicle. This includes active safety systems like radar, LiDAR, and cameras that help prevent accidents, as well as the in-vehicle infotainment systems and software that manage features like navigation, entertainment, and digital displays. Essentially, this part of Aptiv's business is about making cars smarter, safer, and more user-friendly.
Intelligent Systems
This segment, formerly known as Advanced Safety and User Experience, leverages Aptiv's expertise in both software and hardware to create platforms and modular solutions for intelligent edge devices. These systems are designed to enable customers to build and operate devices that can process information and make decisions in real-time, often without constant connection to a central network. This is crucial for applications like autonomous driving, where immediate decision-making is critical for safety and performance. It represents Aptiv's push into more sophisticated, software-driven solutions that go beyond traditional automotive components.
Engineered Components
This segment focuses on the physical components that manage the flow of power, signal, and data within vehicles and other complex systems. It includes a wide array of connection systems, high-performance interconnects, and cable management and protection solutions. These are the specialized parts that ensure reliable communication and power delivery, even in demanding environments. Aptiv's expertise here is vital for everything from basic electrical distribution to the high-speed data transfer required by advanced automotive technologies. This segment also includes solutions for industries beyond automotive, such as aerospace and defense.
What management is betting on now
Aptiv's management is heavily focused on capitalizing on major trends in the automotive industry: electrification, autonomous driving, and the increasing digitalization of vehicles. They are investing in technologies that support electric vehicles (EVs), such as high-voltage systems and battery management solutions, to tap into the growing EV market. Simultaneously, they are advancing capabilities in autonomous driving through software development and strategic partnerships, aiming to be a leader in self-driving technology. The company is also emphasizing the development of software-defined vehicles, where advanced software plays a central role in vehicle functionality and user experience, positioning Aptiv to provide increasingly integrated and intelligent solutions.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$326.00M
FY2024 Q4
$894.00M
FY2025 Q1
$76.00M
FY2025 Q2
$361.00M
FY2025 Q3
$441.00M
FY2025 Q4
$651.00M
FY2026 Q1
$-362.00M
FY2026 Q2
$33.00M
Revenue
$3.27B
Net income
$248.00M
Diluted EPS
1.17
Operating cash flow
$92.00M
Free cash flow
$33.00M
Fetching…
Sources
Revenue
$5.09B
Net income
$189.00M
Diluted EPS
0.88
Operating cash flow
$-143.00M
Free cash flow
$-362.00M
Fetching…
Sources
Revenue
$5.15B
Net income
$138.00M
Diluted EPS
0.64
Operating cash flow
$818.00M
Free cash flow
$651.00M
Fetching…
Sources
Revenue
$5.21B
Net income
$-355.00M
Diluted EPS
-1.63
Operating cash flow
$584.00M
Free cash flow
$441.00M
Fetching…
Sources
Revenue
$5.21B
Net income
$393.00M
Diluted EPS
1.80
Operating cash flow
$510.00M
Free cash flow
$361.00M
Fetching…
Sources
Revenue
$4.83B
Net income
$-11.00M
Diluted EPS
-0.05
Operating cash flow
$273.00M
Free cash flow
$76.00M
Fetching…
Sources
Revenue
$4.91B
Net income
$268.00M
Diluted EPS
1.14
Operating cash flow
$1.06B
Free cash flow
$894.00M
Fetching…
Sources
Revenue
$4.85B
Net income
$363.00M
Diluted EPS
1.48
Operating cash flow
$499.00M
Free cash flow
$326.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $124.19 vs current price $43.65
Wall Street consensus is the average analyst price target: $64.33 (-48.2% lower than our fair-value estimate).
Our most-likely fair value is $124.19 a share — about 184.5% above today's price of $43.65, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $4.9B. Interest coverage 5.6x.
Net debt
$4.92B
Interest coverage
5.59x
Aptiv PLC's profit covers its interest bill about 5.6 times over. which is weaker than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
APTV
BASELINE
Aptiv PLC
Total debt $5.68B Interest coverage 5.59x This is the baseline the peer rows are being compared against.
Total debt $3.52B Interest coverage 7.71x +38% vs APTV Carries about 1.4x more debt cushion than APTV.
Total debt $6.47B Interest coverage 7.67x +37% vs APTV Carries about 1.4x more debt cushion than APTV.
Total debt $4.06B Interest coverage 13.36x +139% vs APTV Carries about 2.4x more debt cushion than APTV.
Total debt $459.00M Interest coverage 25.38x +354% vs APTV Carries about 4.5x more debt cushion than APTV.
What you should know
The case for and against APTV
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 15.0% over 3 years.
-
Stock trades 4.0% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
43.22x
Forward P/E
6.74x
P/B
1.04x
P/S
0.44x
EV/EBITDA
4.33x
PEG ratio
0.95x
Profitability
How much profit each dollar creates
Gross margin
19.3%
Operating margin
12.7%
Net margin
1.1%
ROE
5.2%
ROA
6.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.65x
Current ratio
2.02x
Quick ratio
1.27x
Total debt
$5.68B
Total cash
$761.00M
Growth
How the business has been compounding
Revenue TTM
$18.73B
Revenue 5Y CAGR
6.9%
EPS TTM
1.01
EPS 5Y CAGR
-27.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.35B
Free CF TTM
$1.53B
FCF margin
8.2%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2020-02-04