Core Insights - Investors are comparing Aptiv PLC (APTV) and Modine (MOD) to determine which stock offers better value for investment [1] - APTV has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while MOD has a Zacks Rank of 3 (Hold) [3][7] Valuation Metrics - APTV has a forward P/E ratio of 8.73, significantly lower than MOD's forward P/E of 23.92 [5] - APTV's PEG ratio is 0.58, compared to MOD's PEG ratio of 0.70, suggesting APTV may be undervalued relative to its expected earnings growth [5] - APTV's P/B ratio stands at 1.67, while MOD's P/B ratio is much higher at 5.65, indicating APTV's market value is more favorable compared to its book value [6] Value Grades - APTV holds a Value grade of A, while MOD has a Value grade of C, reflecting APTV's stronger valuation metrics [6]

Company Overview - Aptiv PLC is a leading global technology and mobility company primarily serving the automotive sector, focusing on designing and manufacturing vehicle components and providing electrical, electronic, and safety technology solutions [11] - The company delivers end-to-end smart mobility solutions, active safety, and autonomous driving technologies, enhancing user experience and connected services [11] Investment Potential - Aptiv has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid position in the market [12] - The company is considered a top pick for growth investors, with a Growth Style Score of B, forecasting a year-over-year earnings growth of 14.9% for the current fiscal year [12] - In the last 60 days, seven analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.18 to $7.19 per share [12] - Aptiv boasts an average earnings surprise of 9.9%, further enhancing its attractiveness to investors [12] Summary of Style Scores - The VGM Score combines various investing styles, making it a comprehensive indicator alongside the Zacks Rank, which is based on earnings estimate revisions [6][7] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for higher likelihood of success [9][10]

Group 1 - Aptiv (NYSE: APTV) revised its growth and earnings lower in the third quarter, leading to an 18% decline in share prices from $69.07 to $56.83 [1] - Although share prices have partially recovered, the market remains challenging and growth prospects are uncertain [1] - The analysis utilizes Cash Flow Returns On Investment based DCF valuation tools from ROCGA Research, which has over 20 years of experience in investment analysis [1] Group 2 - ROCGA Research aims to identify undervalued and quality companies through an objective and systematic framework for valuation [1]

分组1 - Zacks Premium offers various tools for investors, including daily updates, access to the Zacks Rank List, and Equity Research reports to enhance investment confidence [1][2] - The Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, providing complementary indicators to the Zacks Rank [2][3] 分组2 - The Value Score identifies undervalued stocks using financial ratios like P/E and Price/Sales, helping value investors find attractive opportunities [3] - The Growth Score focuses on a company's financial health and future outlook, analyzing earnings and sales projections to identify sustainable growth stocks [4] - The Momentum Score helps investors capitalize on price trends by analyzing recent price changes and earnings estimate revisions [5] 分组3 - The VGM Score combines the three Style Scores to identify stocks with the best value, growth, and momentum characteristics, serving as a strong indicator alongside the Zacks Rank [6] - The Zacks Rank model, based on earnings estimate revisions, has shown a strong historical performance, with 1 (Strong Buy) stocks averaging a +25.41% annual return since 1988 [8] 分组4 - Aptiv PLC is a leading technology and mobility company in the automotive sector, providing vehicle components and smart mobility solutions [12] - Aptiv has a Zacks Rank of 3 (Hold) and a VGM Score of A, with a Momentum Style Score of B, indicating potential for upward movement [13][14] - Recent earnings estimates for Aptiv have been revised higher, with a Zacks Consensus Estimate of $7.03 per share for fiscal 2025 and an average earnings surprise of 9.9% [13]

Currency and Financial Instruments - The foreign currency translation adjustment loss for the year ended December 31, 2024, was $282 million, primarily due to a strengthening U.S. dollar against the Mexican Peso (18%), Euro (6%), and Chinese Yuan Renminbi (1%) [405] - As of December 31, 2024, the net fair value liability of all financial instruments with exposure to currency risk was approximately $925 million, compared to $507 million in 2023 [407] - The potential change in fair value from a hypothetical 10% adverse change in quoted currency exchange rates would result in a loss of approximately $21 million as of December 31, 2024 [407] - The Company has designated Euro-denominated Senior Notes as net investment hedges to manage foreign currency exposure [406] - The effective portion of gains or losses on net investment hedges is recognized within the cumulative translation adjustment component in the consolidated statements of comprehensive income [406] Commodity and Interest Rate Exposure - The net fair value of commodity swaps related to non-ferrous metals was a liability of $6 million as of December 31, 2024, compared to $2 million in 2023 [408] - If commodity prices changed by 10%, the fair value of commodity swaps would decrease or increase by $41 million and $43 million as of December 31, 2024 and 2023, respectively [408] - The Company had approximately $250 million of floating rate debt related to the Term Loan A Credit Agreement as of December 31, 2024 [409] - A 25 basis point increase in interest rates would increase annual interest expense by $1 million related to the Term Loan A Credit Agreement [413] Financial Performance - For the year ended December 31, 2024, Aptiv reported net sales of $19,713 million, a decrease of 1.7% from $20,051 million in 2023 [443] - Operating income for 2024 was $1,842 million, an increase of 18.1% compared to $1,559 million in 2023 [443] - Net income attributable to Aptiv for 2024 was $1,787 million, down 39% from $2,909 million in 2023 [443] - Basic net income per share attributable to ordinary shareholders decreased to $6.97 in 2024 from $10.50 in 2023, reflecting a decline of 33.3% [443] - Other comprehensive loss for 2024 was $536 million, compared to a gain of $147 million in 2023 [446] Assets and Liabilities - Total assets decreased from $24,427 million in 2023 to $23,458 million in 2024, a decline of approximately 4% [449] - Total current liabilities rose from $4,808 million in 2023 to $5,131 million in 2024, an increase of about 7% [449] - Long-term debt increased significantly from $6,204 million in 2023 to $7,843 million in 2024, a rise of approximately 26% [449] - Total shareholders' equity decreased from $11,745 million in 2023 to $8,993 million in 2024, a decline of about 23% [449] Cash Flow and Expenditures - Cash flows from operating activities increased to $2,446 million in 2024, compared to $1,896 million in 2023, an increase of approximately 29% [451] - Capital expenditures for 2024 were $830 million, down from $906 million in 2023, a decrease of approximately 8% [451] - The company reported a net cash used in investing activities of $507 million in 2024, compared to $1,002 million in 2023 [451] Shareholder Activities - The company repurchased ordinary shares totaling $4,104 million in 2024, compared to $398 million in 2023 [454] - The number of ordinary shares outstanding decreased from 99 million in 2023 to 92 million in 2024, a reduction of approximately 7% [456] - Dividend payments to minority shareholders were $23 million in 2024, compared to $18 million in 2023, indicating a slight increase [456] Goodwill and Impairment - The company's goodwill related to the Wind River reporting unit was $2,279 million as of December 31, 2024 [429] - The Company performs an annual goodwill impairment assessment in the fourth quarter, with no impairments recorded in 2024, 2023, or 2022 [502] - Goodwill for the Wind River reporting unit is valued at $2,279 million, with its fair value exceeding carrying value by less than 1% [502] Restructuring and Costs - Aptiv recorded restructuring charges totaling approximately $193 million in 2024, a decrease from $211 million in 2023, with $140 million attributed to the Signal and Power Solutions segment [566] - The company expects to incur additional restructuring costs of approximately $55 million in the next twelve months, primarily related to the Signal and Power Solutions segment [563] - Cash expenditures related to restructuring programs were approximately $238 million in 2024, compared to $128 million in 2023 [565] Debt and Financing Activities - The Company fully repaid $301 million on the Tranche A Term Loan on October 27, 2023, recognizing a loss on debt extinguishment of approximately $1 million [577] - Aptiv entered into a $2.5 billion senior unsecured bridge facility on August 1, 2024, which was fully drawn and subsequently repaid in Q3 2024, incurring a loss on debt extinguishment of approximately $11 million [578] - The Term Loan A Credit Agreement, entered on August 19, 2024, has an aggregate principal amount of $600 million, with issuance costs of approximately $2 million [579] - The Company redeemed €700 million of 1.50% Euro-denominated senior unsecured notes in December 2024, financed by the issuance of €750 million in 4.25% Euro-denominated senior unsecured notes due 2036 [586] Investments and Affiliates - Aptiv's investments in publicly traded equity securities totaled $11 million as of December 31, 2024, compared to $14 million in 2023 [469] - The company received dividends of $12 million from equity method investments in 2024, up from $5 million in both 2023 and 2022 [468] - The investment in TTTech Auto was written down to an estimated fair value of $147 million in 2024, resulting in a non-cash impairment charge of approximately $36 million [538] Research and Development - Total research and development expenses were approximately $1,097 million, $1,289 million, and $1,120 million for the years ended December 31, 2024, 2023, and 2022, respectively [479] Compliance and Controls - Aptiv maintained effective internal control over financial reporting as of December 31, 2024, based on COSO criteria [435] - As of December 31, 2024, the Company maintained a consolidated leverage ratio of not more than 3.5 to 1.0, in compliance with the Credit Agreement covenants [575]

Financial Performance - Aptiv PLC reported quarterly revenue of $4.91 billion, exceeding estimates of $4.89 billion [1] - Adjusted earnings were $1.75 per share, surpassing estimates of $1.65 per share [1] - For the first quarter, Aptiv expects revenue between $4.64 billion and $4.84 billion, compared to estimates of $4.81 billion [2] - The company anticipates first-quarter adjusted earnings of $1.40 to $1.60 per share, against estimates of $1.49 per share [2] - Full-year revenue is expected to be between $19.6 billion and $20.4 billion, compared to estimates of $19.96 billion [3] - Full-year adjusted earnings are projected at $7 to $7.60 per share, exceeding estimates of $6.92 per share [3] Market Outlook - Aptiv's CEO emphasized the company's focus on enabling customers to transition to a software-defined future [1] - The company is executing the separation of its Electrical Distribution Systems business, aiming to create two independent companies to better address customer needs and market opportunities [2] Analyst Ratings - Wells Fargo analyst raised Aptiv's price target from $76 to $86 while maintaining an Overweight rating [6] - UBS analyst increased the price target from $82 to $91, maintaining a Buy rating [6] - Oppenheimer analyst raised the price target from $83 to $85, keeping an Outperform rating [6] - RBC Capital analyst boosted the price target from $75 to $82 while maintaining an Outperform rating [6]

Core Insights - Aptiv PLC reported mixed fourth-quarter 2024 results, with adjusted earnings per share of $1.75 beating the Zacks Consensus Estimate by 5.4% and increasing 25% year over year, while revenues of $4.9 billion missed the estimate and decreased slightly year over year [1] Financial Performance - Adjusted revenues declined 1% year over year, with a notable 8% decline in Europe, flat performance in South America, and a 3% growth in both North America and Asia, including a 4% growth in China [2] - Signal and Power Solutions' revenues were $3.5 billion, down 1% year over year, while the Advanced Safety and User Experience segment saw a 2% increase to $1.4 billion [3] - Adjusted operating income was $623 million, up 3.8% year over year, with an adjusted operating income margin of 12.2%, reflecting a 50 basis points increase [3] Cash Flow and Debt - At the end of the quarter, the company had cash and cash equivalents of $1.6 billion, up from $1.1 billion in the previous quarter, while long-term debt decreased to $7.8 billion from $8.3 billion [4] - Total available liquidity was $3.6 billion, down from $3.9 billion in the prior quarter, with $1.1 billion generated from operating activities [4] Future Outlook - For Q1 2025, Aptiv expects revenues between $4.635 billion and $4.835 billion, and adjusted EPS between $1.4 and $1.6, both lower than current Zacks Consensus Estimates [5] - For the full year 2025, revenues are expected to be between $19.6 billion and $20.4 billion, with adjusted EPS between $7 and $7.6, both higher than current Zacks Consensus Estimates [6] - The company anticipates an adjusted operating income margin between 11.9% and 12.3%, and capital expenditure of $880 million [6]

Financial Data and Key Metrics Changes - Aptiv reported fourth quarter revenue of $4.9 billion, a decrease of 1% year-over-year, primarily due to production schedule weaknesses at select OEMs in Europe and China [7][28] - Operating income for the quarter was $623 million, reflecting strong operational performance and cost reduction initiatives, leading to a 25% increase in earnings per share [7][29] - Operating cash flow reached a record $1.1 billion, enabling accelerated deleveraging [8][29] Business Line Data and Key Metrics Changes - Advanced Safety and User Experience (ASUX) segment revenues increased by 2%, driven by double-digit growth in North America, while user experience revenues declined due to the roll-off of legacy programs [15][32] - Signal and Power Solutions segment revenues declined by 3%, impacted by lower vehicle production schedules, although non-auto markets showed growth [19][34] - New business bookings reached a record of $31 billion, with significant contributions from both ASUX and Signal and Power Solutions segments [10][12] Market Data and Key Metrics Changes - Revenue from local Chinese OEMs grew by 16%, reflecting strong commercial traction in the transition to software-defined vehicles [10][31] - North America saw a 3% revenue increase, while Europe experienced an 8% decline due to slower growth in electrified vehicle platforms [30][36] - China revenue mix for 2024 was 53% from local OEMs, indicating a shift towards domestic players [31] Company Strategy and Development Direction - The company is focused on separating the electrical distribution systems business to create two independent entities, enhancing strategic and operational focus [20][21] - Aptiv aims to capitalize on megatrends such as electrification, automation, and connectivity, positioning itself to address evolving customer needs [23][25] - The company plans to optimize its cost structure and pursue strategic capital deployment opportunities, including debt paydown and potential M&A [25][39] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the impact of geopolitical factors and trade policies on supply chains and vehicle production [23][36] - The outlook for 2025 includes a conservative estimate for North American vehicle production, with expectations of a 3% decline in global vehicle production [36][39] - Management remains confident in the growth of electric vehicles and advanced ADAS solutions, despite the uncertain environment [24][39] Other Important Information - The company achieved significant technology milestones in 2024, including awards for advanced safety systems and software solutions [8][10] - Aptiv's investment in Wind River's commercial and product organization is expected to drive revenue growth in 2025 [17][18] Q&A Session Summary Question: Regarding the conservative outlook for North America - Management acknowledged the need for a conservative approach due to geopolitical dynamics and high inventory levels, particularly in North America [51][52] Question: Changes in customer mix in China - Management noted a significant increase in share with local Chinese OEMs, expecting to reach market parity by early 2026 [56][57] Question: Additional areas of conservatism in the outlook - Management highlighted a more conservative outlook for EV growth in Europe, with expectations of lower revenue growth compared to market forecasts [61][62] Question: Coordination with OEMs regarding tariffs - Management confirmed good coordination with OEMs to address potential tariff impacts and supply chain challenges [68][69] Question: Expectations for EDS post-spin-off - Management expects stable revenue for EDS in 2025, with growth driven by EV adoption and market share gains [106][108]

Core Insights - For the quarter ended December 2024, Aptiv PLC reported revenue of $4.91 billion, a slight decrease of 0.2% year-over-year, while EPS increased to $1.75 from $1.40 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $4.88 billion by 0.56%, and the EPS surpassed the consensus estimate of $1.66 by 5.42% [1] Revenue and Earnings Performance - Net sales from Eliminations and Other were reported at -$15 million, which is worse than the estimated -$11.92 million, reflecting a year-over-year increase of 36.4% [4] - Net Sales for Signal and Power Solutions reached $3.54 billion, slightly above the average estimate of $3.51 billion, showing a year-over-year decline of 0.9% [4] - Net Sales for Advanced Safety and User Experience were $1.38 billion, slightly below the average estimate of $1.39 billion, indicating a year-over-year increase of 1.8% [4] Operating Income Metrics - Adjusted Operating Income for Advanced Safety and User Experience was reported at $193 million, exceeding the average estimate of $168.38 million [4] - Adjusted Operating Income for Signal and Power Solutions was $430 million, slightly below the average estimate of $435.46 million [4] Stock Performance - Shares of Aptiv have returned +0.8% over the past month, compared to a +2.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1: Earnings Performance - APTIV PLC reported quarterly earnings of $1.75 per share, exceeding the Zacks Consensus Estimate of $1.66 per share, and up from $1.40 per share a year ago, representing an earnings surprise of 5.42% [1] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - APTIV HLDS LTD's revenues for the quarter ended December 2024 were $4.91 billion, surpassing the Zacks Consensus Estimate by 0.56%, although this is a slight decrease from year-ago revenues of $4.92 billion [2] Group 2: Stock Performance and Outlook - APTIV HLDS LTD shares have increased by approximately 1.3% since the beginning of the year, compared to the S&P 500's gain of 3.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.53 on revenues of $4.84 billion, and for the current fiscal year, it is $6.87 on revenues of $19.93 billion [7] Group 3: Industry Context - The Technology Services industry, to which APTIV HLDS LTD belongs, is currently ranked in the bottom 47% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - APTIV HLDS LTD currently holds a Zacks Rank 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]