Rating Change #8
(VC - Get Report)
has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income, disappointing return on equity, poor profit margins and feeble growth in its earnings per share.
Highlights from the ratings report include:
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 53.25%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 192.53% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Auto Components industry. The net income has significantly decreased by 174.3% when compared to the same quarter one year ago, falling from $39.00 million to -$29.00 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Auto Components industry and the overall market, VISTEON CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for VISTEON CORP is currently extremely low, coming in at 11.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.70% trails that of the industry average.
- VISTEON CORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, VISTEON CORP reported lower earnings of $1.45 versus $21.09 in the prior year. This year, the market expects an improvement in earnings ($3.00 versus $1.45).
Visteon Corporation designs, manufactures, and supplies automotive systems, modules, and components to automotive original equipment manufacturers worldwide. The company has a P/E ratio of 129.6, below the average automotive industry P/E ratio of 140.9 and above the S&P 500 P/E ratio of 17.7. Visteon has a market cap of $1.7 billion and is part of the
industry. Shares are down 36.4% year to date as of the close of trading on Wednesday.
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