Visteon Corporation
Visteon Corporation Fundamental Analysis
Visteon Corporation (VC) shows moderate financial fundamentals with a PE ratio of 5.41, profit margin of 12.29%, and ROE of 32.01%. The company generates $3.8B in annual revenue with weak year-over-year growth of -2.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze VC's fundamental strength across five key dimensions:
Efficiency Score
ExcellentVC demonstrates superior asset utilization.
Valuation Score
ExcellentVC trades at attractive valuation levels.
Growth Score
WeakVC faces weak or negative growth trends.
Financial Health Score
ExcellentVC maintains a strong and stable balance sheet.
Profitability Score
ModerateVC maintains healthy but balanced margins.
Key Financial Metrics
Is VC Expensive or Cheap?
P/E Ratio
VC trades at 5.41 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VC's PEG of -0.36 indicates potential undervaluation.
Price to Book
The market values Visteon Corporation at 1.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.02 times EBITDA. This is generally considered low.
How Well Does VC Make Money?
Net Profit Margin
For every $100 in sales, Visteon Corporation keeps $12.29 as profit after all expenses.
Operating Margin
Core operations generate 8.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $32.01 in profit for every $100 of shareholder equity.
ROA
Visteon Corporation generates $13.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Visteon Corporation produces operating cash flow of $412.81M, showing steady but balanced cash generation.
Free Cash Flow
Visteon Corporation generates strong free cash flow of $381.60M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $13.99 in free cash annually.
FCF Yield
VC converts 15.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.32
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How VC Stacks Against Its Sector Peers
| Metric | VC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.41 | 25.25 | Better (Cheaper) |
| ROE | 32.01% | 1170.00% | Weak |
| Net Margin | 12.29% | 742.00% | Weak |
| Debt/Equity | 0.08 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.80 | 9.19 | Neutral |
| ROA | 13.67% | -6467.00% (disorted) | Strong |
VC outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Visteon Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
33.89%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
299.24%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
137.99%
Industry Style: Cyclical, Growth, Discretionary
High Growth