Aptiv PLC (APTV) stock analysis

P/E below its 5-year median

Aptiv's P/E of 37.3 is below its own 5-year median of 40.3.

P/E above the industry

Aptiv's P/E of 37.3 is above the Motor Vehicles and Motor Vehicle Equipment median of 18.7.

EV/EBITDA below its 5-year median

Aptiv's EV/EBITDA of 6.6 is below its 5-year median of 11.1.

P/B below the industry

Aptiv's price-to-book of 0.94 is below the Motor Vehicles and Motor Vehicle Equipment median of 1.56.

Trading below fair value

The share price of $39.57 is below our fair value estimate of $53.41.

Margin of safety over 20%

The price is 25.9% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 5.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -27.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -78.3% over the last twelve months, against a 5-year average of -38.0% a year.

Growing slower than the industry

Revenue grew 5.3% over the last twelve months; the Motor Vehicles and Motor Vehicle Equipment median is 5.5%.

Guidance lowered

Aptiv lowered its Full Year 2026 Adjusted effective tax rate outlook on Nov 3, 2026.

Gross margin slipping

Gross margin was 19.6% over the last twelve months, against 19.8% a year earlier.

Return on equity under 15%

Return on equity was 2.4% over the last twelve months and averaged 12.5% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 3.3%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Aptiv's return on equity of 2.4% is below the Motor Vehicles and Motor Vehicle Equipment median of 3.5%.

Earnings shrank over 5 years

Net income shrank 38.0% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 1.2% over the last twelve months, against a 5-year average of 6.3%.

Net margin below the industry

Aptiv's net margin of 1.2% is below the Motor Vehicles and Motor Vehicle Equipment median of 1.9%.

High debt

Debt is 61.4% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 53.0% five years ago to 61.4%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 25.1% of total debt.

Interest not well covered

Operating income covers interest expense 3.0 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 2.02 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.39; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Aptiv has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.