Visteon (VC) AI Stock Analysis

• Market Cap: $2.20B
• Dividend Yield: N/A
• Average Volume (3M): 410.23K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.61
• Revenue Growth: -1.35%
• EPS Growth: -39.06%
• Country: US
• Employees: 10,000
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Parts
• EPS (TTM): 2.40
• Shares Outstanding: 27,258,238
• 10 Day Avg. Volume: 386,831
• 30 Day Avg. Volume: 410,231
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.78
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $93.33
• Price Target Upside: 10.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

Visteon's overall stock score reflects its strong financial performance and attractive valuation, despite mixed technical signals and market uncertainties. The company's strategic successes and financial stability support a moderately strong outlook, albeit with caution due to external risks like tariffs.

Positive Factors

Financial Performance

Visteon executed well this quarter, with solid adjusted EBITDA and record free cash flow.

Industry Trends

The company remains one of the fastest growing auto suppliers, with a product portfolio leveraged to key industry mega-trends like digitalization and electrification.

New Business Wins

Visteon achieved its target for $6bn+ in new business wins, booking another $1.2bn in gross new business wins.

Negative Factors

Financial Outlook

The 2025 financial outlook provided by Visteon is below BofA and consensus estimates.

Guidance

FY25 guidance was weaker than anticipated driven by lower volumes, with expected soft production volumes from major automotive manufacturers.

Regional Performance

China remained challenging and will likely take time to improve.

Visteon Business Overview & Revenue Model

Company Description

Visteon Corporation, an automotive technology company, engineers, designs, and manufactures automotive electronics and connected car solutions for vehicle manufacturers worldwide. The company provides instrument clusters, including analog gauge clusters to 2-D and 3-D display-based devices; information displays that integrate a range of user interface technologies and graphics management capabilities, such as 3-D, active privacy, TrueColor enhancement, cameras, optics, haptic feedback, and light effects; and Phoenix, a display audio and embedded infotainment platform, as well as onboard artificial intelligence-based voice assistant with natural language understanding. It also offers wired and wireless battery management systems; telematics control unit to enable secure connected car services, software updates, and data; and head-up displays. In addition, the company provides SmartCore, an automotive-grade, integrated domain controller; DriveCore, a platform for addressing multiple levels of vehicle automation; and body domain modules, which integrate various functions, such as central gateway, body controls, comfort, and vehicle access solutions into one device. Visteon Corporation was incorporated in 2000 and is headquartered in Van Buren, Michigan.

How the Company Makes Money

Visteon makes money primarily through the sale of its electronic components and systems to automotive original equipment manufacturers (OEMs). The company's revenue streams are largely derived from the development and production of digital cockpit electronics, which include instrument clusters, displays, and infotainment systems. Visteon also generates income from its connectivity solutions, such as telematics control units. The company's partnerships with leading global car manufacturers, as well as its focus on innovation and technological advancement, play a significant role in driving its earnings. Additionally, Visteon benefits from long-term supply agreements and contracts with automotive OEMs, providing a stable revenue base and opportunities for growth as the industry shifts towards more technologically advanced vehicles.

Visteon Financial Statement Overview

Summary

Visteon demonstrates strong financial health, with stable revenue growth, solid profitability, and efficient cash flow generation. The company maintains a low debt profile, enhancing financial stability and reducing risk, positioning it well within the auto-parts industry for continued growth.

Income Statement

Visteon has shown strong financial performance with a consistent increase in key profitability metrics. The TTM (Trailing-Twelve-Months) gross profit margin is 14.22%, and the net profit margin stands at 7.68%. The company experienced a slight revenue growth rate of 0.03% over the previous annual period, indicating stability. EBIT and EBITDA margins are healthy at 9.00% and 9.70%, respectively, reflecting robust operational performance.

Balance Sheet

Visteon's balance sheet exhibits strength, with a favorable debt-to-equity ratio of 0.10, suggesting low leverage and prudent financial management. The return on equity (ROE) is impressive at 22.62%, indicating efficient use of equity. The equity ratio of 43.80% underscores the company's solid financial foundation and lower risk exposure.

Cash Flow

The cash flow analysis reveals strong free cash flow growth, with a 13.18% increase compared to the previous year, indicating improved liquidity. The operating cash flow to net income ratio is 1.44, and the free cash flow to net income ratio is 1.24, demonstrating robust cash generation capabilities relative to earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.87B	3.95B	3.76B	2.77B	2.55B
	Gross Profit
531.00M	487.00M	368.00M	254.00M	245.00M
	EBIT
324.00M	280.00M	203.00M	105.00M	72.00M
	EBITDA
409.00M	378.00M	297.00M	199.00M	101.00M
	Net Income Common Stockholders
274.00M	486.00M	124.00M	41.00M	-48.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
623.00M	515.00M	520.00M	452.00M	496.00M
	Total Assets
2.86B	2.73B	2.45B	2.23B	2.27B
	Total Debt
426.00M	445.00M	477.00M	498.00M	527.00M
	Net Debt
-197.00M	-70.00M	-43.00M	46.00M	31.00M
	Total Liabilities
1.55B	1.60B	1.68B	1.62B	1.76B
	Stockholders Equity
1.23B	1.04B	675.00M	516.00M	387.00M
Cash Flow		Free Cash Flow
290.00M	142.00M	86.00M	-12.00M	64.00M
	Operating Cash Flow
427.00M	267.00M	167.00M	58.00M	168.00M
	Investing Cash Flow
-189.00M	-123.00M	-68.00M	-63.00M	-98.00M
	Financing Cash Flow
-100.00M	-156.00M	-9.00M	-29.00M	-58.00M

Visteon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 84.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VC, the sentiment is Positive. The current price of 84.46 is above the 20-day moving average (MA) of 75.94, above the 50-day MA of 78.81, and below the 200-day MA of 89.04, indicating a neutral trend. The MACD of 1.34 indicates Negative momentum. The RSI at 64.75 is Neutral, neither overbought nor oversold. The STOCH value of 83.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VC.

Visteon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	81 Outperform	$2.20B	7.54	25.15%	―	-1.35%	-39.06%
APTV	81 Outperform	$12.67B	9.64	15.52%	―	-2.47%	-43.06%
ALSN	77 Outperform	$8.18B	11.41	50.15%	1.05%	3.86%	16.02%
ALV	74 Outperform	$7.21B	10.89	28.71%	2.94%	-2.29%	35.00%
BWA	72 Outperform	$6.37B	19.59	5.38%	1.45%	-8.22%	-52.61%
LEA	71 Outperform	$4.61B	10.36	10.00%	3.59%	-3.15%	-6.70%
Sector *	61 Neutral	$6.59B	11.77	3.06%	3.98%	2.56%	-20.85%

Visteon Corporate Events

Visteon Reports Strong Q1 2025 Financial Results

Visteon Corporation announced its first quarter 2025 financial results, reporting net sales of $934 million and a net income of $65 million, despite a challenging production environment. The company achieved a 10% growth over market, driven by the ramp-up of digital cockpit products, and secured $1.9 billion in new business wins, including significant contracts with OEMs in Asia and the two-wheeler market. Visteon’s strong balance sheet, with a net cash position of $343 million, provides flexibility to navigate uncertainties such as tariffs. The company launched 16 new products, highlighting its alignment with industry trends and strategic initiatives.

Spark’s Take on VC Stock

According to Spark, TipRanks’ AI Analyst, VC is a Outperform.

Visteon’s overall stock score reflects a strong financial performance, with significant growth in revenue and profitability, and a solid balance sheet. While technical indicators suggest potential bearish trends, the company’s valuation remains attractive due to a low P/E ratio. The earnings call further supports a positive outlook, although it highlights challenges such as flat sales projections and market uncertainties. This balanced view results in a moderately strong overall score.

To see Spark’s full report on VC stock, click here.

Visteon Reports Strong 2024 Financial Performance

In 2024, Visteon Corporation reported strong financial performance with net sales of $3.87 billion and $6.1 billion in new business wins, driven by product launches and market outperformance. Despite a decline in net income due to a reduced tax benefit, the company achieved record adjusted EBITDA and free cash flow, reflecting operational excellence and cost discipline. Visteon’s strategic initiatives led to significant new business wins and product launches, including digital clusters and electrification solutions, enhancing its market position and supporting future growth.