Aptiv PLC (APTV) | Investment Case

1. Company Snapshot

1.a. Company Description

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.

The Signal and Power Solutions segment designs, manufactures, and assembles vehicle's electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems.The Advanced Safety and User Experience segment provides critical components, systems integration, and software development for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, and autonomous driving technologies.The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017.

Aptiv PLC was founded in 2011 and is based in Dublin, Ireland.

Show Full description

1.b. Last Insights on APTV

Aptiv PLC faced negative drivers, including a 24.5% increase in short interest to 6,360,642 shares, indicating bearish sentiment. Additionally, CWA Asset Management Group LLC reduced its stake by 16%, selling 11,603 shares. Despite a "Moderate Buy" rating from analysts, with 14 buy ratings and 4 strong buy ratings, the company's risk profile is elevated due to customer concentration. However, Aptiv's diversification into non-automotive businesses, such as aerospace and robotics, and efforts to manage risks through debt pay-down and semiconductor stockpiling, are positive factors.

1.c. Company Highlights

Last Price	76.96
Change Percentage	-3.28%
Open	79.1
Previous Close	79.57
Market Cap ( Millions)	16629
Volume	253650
Year High	88.93
Year Low	47.19
M A 50	80.03
M A 200	76.35

FCF Yield	9.19%
Dividend Yield	0.00%
ROE	1.78%
Debt / Equity	87.91%
Net Debt / EBIDTA	279.58%
Price To Book	1.85
Price Earnings Ratio	102.96
Price To FCF	10.88
Price To sales	0.82
EV / EBITDA	10.24

2. Aptiv's Q4 2025 Earnings: A Resilient Operating Model

Aptiv reported record fourth-quarter revenue of $5.2 billion, a 3% increase on an adjusted basis. Adjusted operating income totaled $607 million, and earnings per share were $1.86, beating analyst estimates of $1.82. The company's adjusted EBITDA and operating income margin rates were in line with its outlook. The Intelligent Systems segment reported revenue growth of 2% year-over-year, driven by North America and new program launches. The Engineered Components segment reported revenue growth of 1% year-over-year, with operating income increasing 8% and margin expanding 60 basis points.

Publication Date: Feb -04

                                    📋 Highlights
                                    Record Q4 Revenue Growth::
                                                Achieved $5.2 billion revenue (3% adjusted growth), driven by strong segment performance and new program launches.
Strategic Market Expansion::
                                                Secured $27 billion in annual bookings, with innovation in AI software and high-power distribution solutions boosting non-automotive markets.
Financial Efficiency and Cash Flow::
                                                Generated $818 million operating cash flow and allocated $1.4 billion to debt retirement and share repurchases in 2025.
2026 Earnings Guidance::
                                                Projected revenue of $12.8–$13.2 billion and adjusted EPS of $5.70–$6.10, with EBITDA margin expansion to 18.6% for new Aptiv.
Commodity and FX Impacts::
                                                Forecast $200 million revenue growth from copper prices and 120 bps EBITDA margin headwind from FX and commodities in 2026.

                                

Segment Performance

The Electrical Distribution Systems segment reported revenue growth of 5% year-over-year, driven by North America. The company's capital allocation efforts in 2025 included retiring $1 billion in debt and deploying $400 million towards share repurchases. Aptiv generated $818 million of operating cash flow in the fourth quarter, with a decrease versus the prior year primarily due to unfavorable net working capital and separation costs related to the upcoming spin-off of Versagen.

Outlook and Guidance

For 2026, Aptiv forecasts revenue in the range of $12.8 to $13.2 billion, up 4% at the midpoint. EBITDA and EBITDA margin are expected to be $2.42 billion and 18.6% at the midpoint, excluding stranded costs. Adjusted earnings per share is estimated to be in the range of $5.70 to $6.10. The company's guidance suggests a continued strong performance, with revenue growth expected to be driven by North America.

Valuation Metrics

With a P/E Ratio of 104.62 and an EV/EBITDA of 10.3, Aptiv's valuation suggests that the market is pricing in a high growth rate. The company's ROE (%) is 1.78, and ROIC (%) is 2.5, indicating a relatively low return on equity and invested capital. Analysts estimate next year's revenue growth at 5.1%, which is slightly higher than the company's guidance. The company's ability to pass on cost increases to its OEM customers, as stated by Kevin Clark, "We've been successful in the past in recovering 100% of semi-inflation from the 2021 chip crisis," provides a positive outlook for the company's margins.

3. NewsRoom

Citigroup Inc. Purchases 261,680 Shares of Aptiv PLC $APTV

09:02

Source: defenseworld.net

Aptiv PLC (APTV) Presents at Barclays 43rd Annual Industrial Select Conference Transcript

Feb -18

Source: seekingalpha.com

Caprock Group LLC Acquires Shares of 17,636 Aptiv PLC $APTV

Feb -15

Source: defenseworld.net

John Rogers' Strategic Moves: Sphere Entertainment Co Sees Significant Reduction

Feb -13

Source: gurufocus.com

Technological Investments & Acquisitions Aid Aptiv Amid Low Liquidity

Feb -13

Source: zacks.com

Envestnet Asset Management Inc. Has $45.13 Million Stock Holdings in Aptiv PLC $APTV

Feb -11

Source: defenseworld.net

Savant Capital LLC Trims Position in Aptiv PLC $APTV

Feb -09

Source: defenseworld.net

RF-Based VRU Safety Platforms Positioned for Institutional-Scale Growth

Feb -06

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Signal and Power Solutions

Expected Growth: 10.2%

Aptiv's growth is driven by increasing adoption of advanced safety and autonomous driving technologies, as well as growing demand for electrification and connectivity solutions in the automotive industry.

Advanced Safety and User Experience

Expected Growth: 15.4%

Growing demand for autonomous mobility and increasing adoption of smart vehicle architectures drive Aptiv’s Advanced Safety and User Experience segment growth, fueled by rising safety concerns and government regulations.

Eliminations and Other

Expected Growth: 5.5%

Aptiv PLC’s Eliminations and Other segment's residual value is driven by growth in autonomous driving, increased electrification, and expansion in emerging markets, resulting in a forecast CAGR of 5.5%.

7. Detailed Products

Autonomous Mobility

Aptiv's Autonomous Mobility solutions provide a comprehensive suite of technologies and services to enable the development and deployment of autonomous vehicles.

Electrification

Aptiv's Electrification solutions provide a range of products and services to support the transition to electric vehicles, including electric motors, power electronics, and charging systems.

Smart Vehicle Architecture

Aptiv's Smart Vehicle Architecture solutions provide a comprehensive suite of technologies and services to enable the development of connected and autonomous vehicles.

Active Safety

Aptiv's Active Safety solutions provide a range of products and services to improve vehicle safety, including advanced driver-assistance systems (ADAS) and autonomous emergency braking (AEB).

Connectivity and Infotainment

Aptiv's Connectivity and Infotainment solutions provide a range of products and services to enable connected vehicles, including infotainment systems, connectivity modules, and cybersecurity solutions.

Vehicle Motion and Power

Aptiv's Vehicle Motion and Power solutions provide a range of products and services to improve vehicle performance, including powertrain systems, transmission systems, and chassis systems.

8. Aptiv PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

Aptiv PLC faces moderate threat from substitutes due to the presence of established players in the automotive technology industry, but the company's focus on innovative solutions and partnerships helps to mitigate this threat.

Bargaining Power Of Customers

Aptiv PLC's customers, mainly automotive OEMs, have limited bargaining power due to the company's strong market position and diversified customer base.

Bargaining Power Of Suppliers

Aptiv PLC's suppliers, mainly component manufacturers, have moderate bargaining power due to the company's dependence on them for critical components, but the company's scale and diversification efforts help to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low for Aptiv PLC due to the high barriers to entry in the automotive technology industry, including significant capital requirements and the need for specialized expertise.

Intensity Of Rivalry

The intensity of rivalry in the automotive technology industry is high, with many established players competing for market share, but Aptiv PLC's strong brand and innovative solutions help the company to maintain its competitive position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	37.02%
Debt Cost	3.95%
Equity Weight	62.98%
Equity Cost	13.50%
WACC	9.96%
Leverage	58.77%

11. Quality Control: Aptiv PLC passed 5 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Michelin

A-Score: 5.9/10

Value: 6.0

Growth: 4.6

Quality: 4.7

Yield: 8.8

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

Relais

A-Score: 5.9/10

Value: 4.8

Growth: 8.9

Quality: 3.9

Yield: 4.4

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

AB Dynamics

A-Score: 5.2/10

Value: 4.1

Growth: 8.1

Quality: 7.5

Yield: 5.0

Momentum: 0.0

Volatility: 6.7

1-Year Total Return ->

Aptiv

A-Score: 4.5/10

Value: 5.3

Growth: 5.6

Quality: 4.9

Yield: 0.0

Momentum: 7.5

Volatility: 4.0

1-Year Total Return ->

Continental

A-Score: 3.9/10

Value: 5.1

Growth: 3.3

Quality: 2.6

Yield: 5.6

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

Mobileye

A-Score: 2.2/10

Value: 5.3

Growth: 3.1

Quality: 3.3

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

1.61%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.96%

Aptiv PLC - JE00B783TY65

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on APTV

1.c. Company Highlights

Weak Momentum

Lower Yield

Medium Volatility

Earnings Beats

Revenues Miss

Stable Momentum

Average Growth

Earnings Miss

Revenues Beats

Fairly Valued

Average Quality

Strong Momentum

2. Aptiv's Q4 2025 Earnings: A Resilient Operating Model

Segment Performance

Outlook and Guidance

Valuation Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Signal and Power Solutions

Expected Growth: 10.2%

Advanced Safety and User Experience

Expected Growth: 15.4%

Eliminations and Other

Expected Growth: 5.5%

7. Detailed Products

Autonomous Mobility

Electrification

Smart Vehicle Architecture

Active Safety

Connectivity and Infotainment

Vehicle Motion and Power

8. Aptiv PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Aptiv PLC passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

76.96$

Current Price

76.96$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA