📊 APTV Key Takeaways
Is Aptiv PLC (APTV) a Good Investment?
Aptiv is a deteriorating business facing operational stress with negative operating cash flow of -$143M despite $5.1B revenue, indicating fundamental profitability issues. Critical interest coverage of 1.0x on $9.2B debt combined with zero revenue growth and 89% EPS decline YoY signals potential debt servicing challenges ahead.
Aptiv’s fundamentals are mixed: cash generation remains solid, with $2.19B of operating cash flow and $1.53B of free cash flow, and liquidity appears healthy. However, flat revenue, a sharp EPS decline, very thin net margins, and weak returns on equity and assets point to pressured profitability and only moderate earnings quality. The balance sheet is serviceable, but leverage and interest coverage leave limited room for further margin deterioration.
Why Buy Aptiv PLC Stock? APTV Key Strengths
- Strong liquidity position with current ratio of 2.11x and $3.2B cash reserves providing near-term solvency buffer
- Moderate debt-to-equity ratio of 1.0x compared to peers in automotive suppliers
- Sustained $5.1B revenue base indicating maintained market presence despite headwinds
- Strong operating cash flow and free cash flow generation relative to earnings
- Healthy liquidity profile with 1.74x current ratio and 1.23x quick ratio
- Moderate balance sheet leverage with substantial equity base
APTV Stock Risks: Aptiv PLC Investment Risks
- Negative operating cash flow (-$143M) indicates core business is not generating cash; concerning deterioration in cash conversion efficiency
- Critical interest coverage of 1.0x leaves no margin for error in debt servicing; any operational decline could trigger covenant issues
- Revenue growth flatlined at 0% YoY while EPS collapsed 89%, suggesting margin compression and operational underperformance requiring immediate remediation
- Profitability is weak, with 4.7% gross margin, 0.8% net margin, and low ROE/ROA
- EPS fell 89.2% year over year despite flat revenue, indicating significant earnings pressure
- Interest coverage of 3.3x suggests debt servicing capacity is adequate but not robust if conditions worsen
Key Metrics to Watch
- Operating cash flow trend - must return to positive to validate business stability
- Interest coverage ratio - critical to maintain above 1.5x minimum safe threshold
- Revenue growth and net margin improvement - flat growth unsustainable with current cost structure
- Operating margin and EPS recovery
- Free cash flow consistency relative to debt obligations
Aptiv PLC (APTV) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.11x current ratio provides a solid financial cushion.
APTV Profit Margin, ROE & Profitability Analysis
APTV vs Automotive Sector: How Aptiv PLC Compares
How Aptiv PLC compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Aptiv PLC Stock Overvalued? APTV Valuation Analysis 2026
Based on fundamental analysis, Aptiv PLC has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Aptiv PLC Balance Sheet: APTV Debt, Cash & Liquidity
APTV Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Aptiv PLC's revenue has shown modest growth of 2% over the 5-year period. The most recent EPS of $10.39 reflects profitable operations.
APTV Revenue Growth, EPS Growth & YoY Performance
APTV Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $4.9B | $27.0M | $0.12 |
| Q2 2025 | $5.1B | $382.0M | $1.70 |
| Q1 2025 | $4.8B | -$11.0M | $-0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Aptiv PLC Dividends, Buybacks & Capital Allocation
APTV SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Aptiv PLC (CIK: 0001521332)
📋 Recent SEC Filings
❓ Frequently Asked Questions about APTV
What is the AI rating for APTV?
Aptiv PLC (APTV) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are APTV's key strengths?
Claude: Strong liquidity position with current ratio of 2.11x and $3.2B cash reserves providing near-term solvency buffer. Moderate debt-to-equity ratio of 1.0x compared to peers in automotive suppliers. ChatGPT: Strong operating cash flow and free cash flow generation relative to earnings. Healthy liquidity profile with 1.74x current ratio and 1.23x quick ratio.
What are the risks of investing in APTV?
Claude: Negative operating cash flow (-$143M) indicates core business is not generating cash; concerning deterioration in cash conversion efficiency. Critical interest coverage of 1.0x leaves no margin for error in debt servicing; any operational decline could trigger covenant issues. ChatGPT: Profitability is weak, with 4.7% gross margin, 0.8% net margin, and low ROE/ROA. EPS fell 89.2% year over year despite flat revenue, indicating significant earnings pressure.
What is APTV's revenue and growth?
Aptiv PLC reported revenue of $5.1B.
Does APTV pay dividends?
Aptiv PLC does not currently pay dividends.
Where can I find APTV SEC filings?
Official SEC filings for Aptiv PLC (CIK: 0001521332) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is APTV's EPS?
Aptiv PLC has a diluted EPS of $0.88.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is APTV a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Aptiv PLC has a SELL rating with 81% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is APTV stock overvalued or undervalued?
Valuation metrics for APTV: ROE of 2.0% (sector avg: 12%), net margin of 3.7% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy APTV stock in 2026?
Our dual AI analysis gives Aptiv PLC a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is APTV's free cash flow?
Aptiv PLC's operating cash flow is $-143.0M, with capital expenditures of $219.0M. FCF margin is -7.1%.
How does APTV compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 3.7% (avg: 6%), ROE 2.0% (avg: 12%), current ratio 2.11 (avg: 1.2).