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Visteon
(NASDAQ:VC)
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Rating:63Neutral
Price Target:
$110.00
▲(6.02% Upside)
Action:Reiterated
Date:07/23/26
Overall score reflects a stable but not high-conviction setup: financial performance is mixed (revenue/margin compression and weaker free-cash-flow momentum, offset by a strong balance sheet), and technicals are currently soft. These are partly counterbalanced by a constructive earnings call featuring reaffirmed guidance, strong bookings/launch momentum, and a meaningful accelerated share repurchase.
Positive Factors
Balance sheet strength
Improving leverage and a net cash position provide durable financial flexibility to fund program launches, R&D and the share repurchase plan without stressing liquidity. Strong equity and amended credit lines reduce refinancing risk and support multi-year investment in software-defined cockpit programs.
Negative Factors
TTM revenue decline and margin compression
A pronounced TTM revenue decline and compressed margins signal weaker underlying demand or mix erosion from peak profitability years. Sustained top-line deterioration reduces operating leverage and weakens the base from which software and HPC growth must expand to restore long‑term earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Improving leverage and a net cash position provide durable financial flexibility to fund program launches, R&D and the share repurchase plan without stressing liquidity. Strong equity and amended credit lines reduce refinancing risk and support multi-year investment in software-defined cockpit programs.
Read all positive factors
Visteon (VC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.79B
Dividend Yield1.24%
Average Volume (3M)672.40K
Price to Earnings (P/E)18.7
Beta (1Y)0.72
Revenue Growth-1.13%
EPS Growth-47.30%
CountryUS
Employees10,500
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)5.60
Shares Outstanding26,695,429
10 Day Avg. Volume502,726
30 Day Avg. Volume672,400
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)1.65
Price to Sales (P/S)0.69
P/FCF Ratio9.34
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$135.00Price Target Upside30.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)8.62
Revenue Forecast (FY)$3.79B
Visteon Business Overview & Revenue Model
Company Description
Visteon Corporation, established in 2000 and headquartered in Van Buren, Michigan, is an automotive technology leader. The company specializes in engineering, designing, and manufacturing advanced electronics and connected car solutions for vehicl...
How the Company Makes Money
Visteon makes money primarily by selling cockpit electronics systems and related software/services directly to automotive OEMs under vehicle program supply agreements. Its core revenue stream is production revenue from shipping complete modules an...
Visteon Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed a resilient and constructive tone: the company outperformed market production by ~4 percentage points, delivered positive adjusted EBITDA and quarterly free cash flow, secured $2B of new business in Q2 (bringing H1 wins to $3B), reaffirmed full‑year guidance and announced a $200M ASR. These achievements offset notable near‑term challenges — a ~1% YoY sales decline, industry production declines (~5%), ongoing memory and broader electronic inflation, inventory build and H1 cash timing impacts, and China market pressures. Management emphasized progress on recoveries, supply agreements (Micron), a strong launch pipeline, and medium‑term margin improvement expectations, but flagged 2027 as potentially more challenging for memory supply/costs. Overall, positive operational momentum and strong bookings/launch cadence outweigh the near‑term cost and market headwinds, though execution of recoveries and supply resilience remain key risks.Positive Updates
Solid sales resilience and market outperformance
Quarterly sales were roughly flat year‑over‑year (decline of ~1%) at about $960M (also cited as $916M in a later remark), while customer vehicle production fell ~5% — representing approximately 4 percentage points of outperformance versus the market.
Negative Updates
Declining customer vehicle production and regional headwinds
Customer vehicle production declined ~5% across major regions, pressuring volumes. Americas experienced headwinds from lower BMS volumes with GM, Ford vehicle discontinuations and a legacy GM cluster program roll‑off; China faced weakness in the value segment following policy changes and loss of international OEM share.
Read all updates
Q2-2026 Updates
Positive
Negative
Solid sales resilience and market outperformance
Quarterly sales were roughly flat year‑over‑year (decline of ~1%) at about $960M (also cited as $916M in a later remark), while customer vehicle production fell ~5% — representing approximately 4 percentage points of outperformance versus the market.
Read all positive updates
Company Guidance
Visteon reaffirmed 2026 guidance with full-year sales of $3.625–$3.825 billion (trending toward $3.8B), adjusted EBITDA of $455–$495M (trending toward roughly $475M) and adjusted free cash flow of $170–$210M (trending to the low end ≈ $170M); management expects H2 sales to grow year‑over‑year despite customer vehicle production forecasted to be down ~5%, with mid‑ to high‑single‑digit outperformance in H2 and regional expectations of mid‑teens growth in Europe and Rest of Asia, low‑single‑digit growth in China and a decline in the Americas. Key operating context: H1 sales $1.9B, Q2 sales $960M, Q2 adjusted EBITDA $116M (12.1% margin), Q2 adjusted FCF $20M (H1 FCF -$3M), cash $650M (net cash ≈ $351M), H1 bookings $3B (Q2 wins $2B; full‑year bookings target $6B), 44 launches YTD (24 in Q2), expectation that most memory and other cost recoveries will close in H2, and a $200M accelerated share repurchase to be completed by early Q4.Visteon Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
74
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.78B | 3.77B | 3.87B | 3.95B | 3.76B | 2.77B |
| Gross Profit | 484.00M | 532.00M | 531.00M | 697.00M | 572.00M | 453.00M |
| EBITDA | 364.00M | 451.00M | 409.00M | 365.00M | 295.00M | 199.00M |
| Net Income | 151.00M | 201.00M | 274.00M | 486.00M | 124.00M | 41.00M |
Balance Sheet | ||||||
| Total Assets | 3.46B | 3.39B | 2.86B | 2.73B | 2.45B | 2.23B |
| Cash, Cash Equivalents and Short-Term Investments | 648.00M | 771.00M | 623.00M | 515.00M | 520.00M | 452.00M |
| Total Debt | 434.00M | 540.00M | 426.00M | 445.00M | 477.00M | 498.00M |
| Total Liabilities | 1.77B | 1.74B | 1.55B | 1.60B | 1.68B | 1.62B |
| Stockholders Equity | 1.61B | 1.57B | 1.23B | 1.04B | 675.00M | 516.00M |
Cash Flow | ||||||
| Free Cash Flow | 160.00M | 277.00M | 290.00M | 142.00M | 86.00M | -12.00M |
| Operating Cash Flow | 288.00M | 410.00M | 427.00M | 267.00M | 167.00M | 58.00M |
| Investing Cash Flow | -159.00M | -181.00M | -189.00M | -123.00M | -68.00M | -63.00M |
| Financing Cash Flow | -155.00M | -116.00M | -100.00M | -156.00M | -9.00M | -29.00M |
Visteon Technical Analysis
Negative
103.75
Price Trends
109.48
Negative
105.33
Negative
102.12
Positive
Market Momentum
-0.88
Negative
46.89
Neutral
34.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VC, the sentiment is Negative. The current price of 103.75 is below the 20-day moving average (MA) of 104.41, below the 50-day MA of 109.48, and above the 200-day MA of 102.12, indicating a neutral trend. The MACD of -0.88 indicates Negative momentum. The RSI at 46.89 is Neutral, neither overbought nor oversold. The STOCH value of 34.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VC.
Visteon Risk Analysis
Visteon disclosed 22 risk factors in its most recent earnings report. Visteon reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Visteon Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $9.02B | 14.44 | 25.10% | 2.94% | 5.89% | -7.00% | |
67 Neutral | $6.54B | 12.13 | 10.90% | 2.14% | 3.55% | 25.67% | |
64 Neutral | $13.07B | 37.06 | 7.37% | 1.06% | 2.36% | 34.03% | |
63 Neutral | $2.79B | 18.67 | 9.71% | 1.23% | -1.13% | -47.30% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $11.95B | 33.61 | 2.41% | ― | 5.20% | -71.83% | |
46 Neutral | $2.00B | -0.96 | -84.20% | ― | -3.69% | -958.22% |
* Consumer Cyclical Sector Average
VC
Visteon
104.13
-7.92
-7.07%
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BWA
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49.55
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GT
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6.44
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122.84
29.61
31.76%
Visteon Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Visteon Announces Q2 Results and Accelerated Share Repurchase
Positive
Jul 23, 2026
On July 23, 2026, Visteon reported second-quarter 2026 sales of $960 million, slightly below the prior year but delivering 4% growth over market driven by launch ramps and regional execution. Net income reached $49 million and adjusted EBITDA was ...
Business Operations and StrategyStock Buyback
Visteon Announces New $800 Million Share Repurchase Program
Positive
Jun 25, 2026
On June 24, 2026, Visteon’s board authorized an $800 million share repurchase program for its common stock, running through December 31, 2029, with the company planning to fund the buybacks from excess cash and future cash flows. The move un...
Business Operations and StrategyExecutive/Board Changes
Visteon Adds AI-Focused Technology Leader to Board
Positive
Jun 17, 2026
On June 16, 2026, Visteon’s board of directors elected technology executive Gary D. Hicok to join the board effective July 1, 2026, and appointed him to the Technology Committee. The board determined he meets all independence requirements, a...
Executive/Board Changes
Visteon Reappoints Francis Scricco as Non-Executive Chairman
Positive
Jun 15, 2026
On June 11, 2026, Visteon’s board of directors reappointed Francis M. Scricco as non-executive chairman of the board of the company. The decision signals continuity in the company’s board leadership and governance structure, which may ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.