NEW YORK (
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- Compared to other companies in the Auto Components industry and the overall market, VISTEON CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- VC's revenue growth has slightly outpaced the industry average of 8.4%. Since the same quarter one year prior, revenues rose by 17.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- VISTEON CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, VISTEON CORP increased its bottom line by earning $21.09 versus $0.98 in the prior year. For the next year, the market is expecting a contraction of 80.9% in earnings ($4.04 versus $21.09).
- Net operating cash flow has decreased to $35.00 million or 30.00% when compared to the same quarter last year. Despite a decrease in cash flow VISTEON CORP is still fairing well by exceeding its industry average cash flow growth rate of -68.18%.
- The gross profit margin for VISTEON CORP is currently extremely low, coming in at 11.50%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.00% trails that of the industry average.
Visteon Corporation supplies automotive systems, modules, and components to automotive original equipment manufacturers worldwide. The company has a P/E ratio of 41.3, above the average automotive industry P/E ratio of four and above the S&P 500 P/E ratio of 17.7. Visteon has a market cap of $2.5 billion and is part of the
industry. Shares are up 8.8% year to date as of the close of trading on Friday.
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-- Written by a member of TheStreet RatingsStaff