One-glance verdict
Undervalued
$182.56 our estimate vs market $100.93
Wall Street consensus: $131.73 (-27.8% lower than our fair-value estimate)
45% below our estimate, below the bear case
Fundamentals snapshot
Visteon Corporation
VC · NMS · Consumer Cyclical · Auto Parts
Current price
$100.93
52-week range
$83.49 - $128.15
Market cap
$2.69B
Balance sheet
Healthy
25.38x Strong cushion
Net cash $214.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 0.3% last year.
- Reward Returns 9.5% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Stock trades 33.1% above its 5-year average P/E.
What this company does
Visteon Corporation
Visteon Corporation designs and builds the digital screens and electronic brains that run modern car dashboards. The company makes its money by selling these advanced systems, including infotainment centers and battery management systems for electric vehicles, directly to the world's automakers. As cars become more like computers on wheels, Visteon's position as a key supplier (a business that provides parts for a final product) is tied to the auto industry's shift toward more in-car technology.
How the company got here
Visteon started in 2000 when Ford Motor Company spun off its car parts division into a separate company. Initially, it made a wide variety of parts, including air conditioning and interior components. After facing financial trouble and filing for bankruptcy in 2009, the company restructured to focus exclusively on the growing field of in-car electronics. A key move was selling its other divisions and buying the electronics business from a competitor in 2014, transforming it into the technology-focused company it is today.
What it actually does
Visteon creates the high-tech electronic systems inside a car's dashboard, often called the digital cockpit. This includes the digital screen that replaces traditional speedometers, the central touchscreen for maps and music (the infotainment system), and the computers that run them. The company sells these systems directly to car manufacturers, who then build them into the new vehicles you see in showrooms. Visteon is also developing electronics for the growing electric vehicle market.
Digital Cockpit Electronics
This is Visteon's main business, making up the vast majority of its sales. It builds the digital instrument clusters (the screens behind the steering wheel that show speed and other alerts) and the central information displays used for navigation and entertainment. A key product is the SmartCore™ domain controller, which is a powerful computer that consolidates (combines) multiple electronic functions into a single box, saving space and cost for automakers. Car companies pay Visteon for these integrated hardware and software systems to create the modern, screen-filled interiors that drivers now expect.
Electrification Products
This is a smaller but strategically important part of the company focused on electric vehicles (EVs). Visteon designs and supplies battery management systems, which are the electronic brains that monitor the health, charge, and performance of an EV's large battery pack. They also make power electronics that help manage the flow of high-voltage electricity throughout the vehicle. As more carmakers shift to producing electric models, they pay Visteon for these critical components to ensure their EVs run safely and efficiently.
What management is betting on now
Management's strategy is centered on the idea of the "software-defined" car, where a vehicle's features are increasingly controlled by software. They are focused on increasing the value of their electronic and software content in each car sold. A major priority is growing their newer electrification business to capitalize on the auto industry's shift to electric vehicles. They are also investing in artificial intelligence (AI) to make their cockpit systems smarter and more intuitive for drivers.
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.
Revenue
$960.00M
Net income
$49.00M
Diluted EPS
1.80
Operating cash flow
$37.00M
Free cash flow
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Sources
Revenue
$954.00M
Net income
$31.00M
Diluted EPS
1.14
Operating cash flow
$6.00M
Free cash flow
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Revenue
$948.00M
Net income
$74.00M
Diluted EPS
2.67
Operating cash flow
$118.00M
Free cash flow
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Revenue
$917.00M
Net income
$57.00M
Diluted EPS
2.04
Operating cash flow
$127.00M
Free cash flow
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Revenue
$969.00M
Net income
$65.00M
Diluted EPS
2.36
Operating cash flow
$95.00M
Free cash flow
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Revenue
$934.00M
Net income
$65.00M
Diluted EPS
2.36
Operating cash flow
$70.00M
Free cash flow
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Revenue
$939.00M
Net income
$125.00M
Diluted EPS
4.48
Operating cash flow
$203.00M
Free cash flow
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Revenue
$980.00M
Net income
$39.00M
Diluted EPS
1.40
Operating cash flow
$98.00M
Free cash flow
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Is it cheap or expensive?
Fair value $182.56 vs current price $100.93
Wall Street consensus is the average analyst price target: $131.73 (-27.8% lower than our fair-value estimate).
Our most-likely fair value is $182.56 a share — about 80.9% above today's price of $100.93, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $214.0M - more cash than debt. Interest coverage 25.4x.
Net debt
$-214.00M
Interest coverage
25.38x
Visteon Corporation's profit covers its interest bill about 25.4 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
VC
BASELINE
Visteon Corporation
Total debt $434.00M Interest coverage 25.38x This is the baseline the peer rows are being compared against.
Total debt $5.68B Interest coverage 5.59x -78% vs VC Carries about 4.5x less debt cushion than VC.
Total debt $3.52B Interest coverage 7.71x -70% vs VC Carries about 3.3x less debt cushion than VC.
Total debt $4.06B Interest coverage 13.36x -47% vs VC Carries about 1.9x less debt cushion than VC.
Total debt $6.47B Interest coverage 7.67x -70% vs VC Carries about 3.3x less debt cushion than VC.
What you should know
The case for and against VC
3 Rewards
1 Risk
Rewards
-
Revenue grew 0.3% last year.
-
Returns 9.5% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 33.1% 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)
19.45x
Forward P/E
9.64x
P/B
1.73x
P/S
0.71x
EV/EBITDA
6.46x
PEG ratio
1.01x
Profitability
How much profit each dollar creates
Gross margin
12.8%
Operating margin
7.8%
Net margin
3.8%
ROE
9.5%
ROA
5.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.26x
Current ratio
1.77x
Quick ratio
1.41x
Total debt
$434.00M
Total cash
$648.00M
Growth
How the business has been compounding
Revenue TTM
$3.78B
Revenue 5Y CAGR
8.0%
EPS TTM
5.19
EPS 5Y CAGR
18.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$288.00M
Free CF TTM
$277.00M
FCF margin
7.3%
Dividend
Shareholder payout
Yield
1.5%
Payout ratio
25.1%
Last ex-div date
2026-09-01