Visteon Corp (VC) stock analysis

P/E below its 5-year median

Visteon's P/E of 13.8 is below its own 5-year median of 17.7.

P/E below the industry

Visteon's P/E of 13.8 is below the Motor Vehicles and Motor Vehicle Equipment median of 18.7.

EV/EBITDA below its 5-year median

Visteon's EV/EBITDA of 5.9 is below its 5-year median of 6.2.

P/B below the industry

Visteon's price-to-book of 1.40 is below the Motor Vehicles and Motor Vehicle Equipment median of 1.56.

Trading below fair value

The share price of $80.07 is below our fair value estimate of $115.26.

Margin of safety over 20%

The price is 30.5% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 0.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 18.7% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 1.9% over the last twelve months; the Motor Vehicles and Motor Vehicle Equipment median is 5.5%.

Guidance issued

The latest outlook (full-year 2026 sales, Oct 22, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 10.4% over the last twelve months, against 14.5% a year earlier.

Return on equity under 15%

Return on equity was 10.8% over the last twelve months and averaged 27.0% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Visteon's return on equity of 10.8% is above the Motor Vehicles and Motor Vehicle Equipment median of 3.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 4.1% over the last twelve months, against a 5-year average of 6.4%.

Net margin above the industry

Visteon's net margin of 4.1% is above the Motor Vehicles and Motor Vehicle Equipment median of 1.9%.

Low debt

Debt is 23.4% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 90.2% five years ago to 23.4%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 60.3% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.61 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.17; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Visteon paid dividends worth 1.7% of the share price over the last twelve months.

Yield below Treasuries

The 1.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Visteon yields 1.7%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 22.6% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.