Orin
APTVNYSE·Auto - Parts

Aptiv PLC APTV

Market cap $9.5BP/E 43.0× trailingGross margin 19.9%Reports Thu 29 Oct, before the open
$45.17
+0.56 (+1.26%)Wed close 16:00 ET
52-wk $42.99 – $88.93
Watch
Orin's take
0.62conviction · moderate
Refreshed 17 Aug · take v8. A new filing or a print queues the next refresh.

Aptiv remains a hold as the fundamental picture is genuinely mixed: FY2025 operating margin collapsed to 5.8% from 10.46% with EPS down 89% to $0.75, and management cut 2026 guidance citing China weakness and launch delays, yet a cluster buy by 4 insiders including the CEO for ~$8.3M between August 5–13 signals conviction that the selloff is overdone. The valuation screen is cheap at 0.57x P/S and 8.4x EV/EBITDA with $1.53B FCF, but a 47.7x trailing P/E on depressed earnings and a technical downtrend (price 26% below the 200-day MA of $67.64) argue for waiting on Q3 2026 to confirm whether margin recovery is real before turning constructive.

What could go wrong

  • China structural weakness. Management characterized China demand weakness as a structural headwind and is exploring non-automotive diversification, suggesting the core auto electrical architecture business faces persistent pressure in a key market.
  • Margin deterioration persistence. FY2025 operating margin fell to 5.8% from 10.46% in FY2024 and operating income dropped from $2.06B to $1.18B; if this does not reverse, the P/E of 47.7x remains elevated and FCF could compress.
  • Guidance cut execution risk. Aptiv cut its 2026 outlook by approximately $300M after the Q2 beat, with launch delays and software timing pressuring the second half, increasing uncertainty around H2 delivery.
  • Leverage and debt trajectory. Total debt rose to $8.09B in FY2025 from $6.79B in FY2023, and with net income at just $165M, interest coverage is thin relative to historical levels.

What would change my mind

Q3 2026 margin recovery confirmation. Q3 2026 operating margin reclaims 8%+ with revenue growth accelerating, indicating the FY2025 trough is behind the companybullish
Further guidance reduction. Management lowers 2026 outlook again or FCF guidance falls below $1B, signaling deterioration is ongoingbearish
China stabilization or non-auto revenue traction. China demand shows sequential improvement or non-automotive diversification produces a material contract winbullish
Technical breakdown below cluster-buy levels. Stock closes below $47 (the cluster-buy average entry zone) on heavy volume, invalidating the insider signalbearish

Where this comes from: derived_metrics FY2025 and FY2024 · derived_metrics FY2025 · insider cluster_buy · peer_relative rows. Orin's read on APTV; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

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Where it trades

vs its own 5y · Consumer Cyclical
MetricNowOwn medianSector
P/E43.0×42.5×79.6×
EV/EBITDA7.8×11.8×
P/S0.51×1.24×
P/B1.1×2.2×

Its P/E sits 60th percentile of its own last 5 years (−0.12σ from its own mean).

What the price assumes

-8.7%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $1.5B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

33 firms · 2026-09-23
Consensus target

$69

$55$94 · +53% against today's price

How they rate it
  • 20 buy or overweight
  • 13 hold
  • 0 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

What it has traded at

P/E by fiscal year
FY14 12.2×FY25 101.5×

What its sector has traded at

Consumer Cyclical
FY14 393.1×FY26 81.0×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Every estimate on one scale

price $45.17
52-week range$43 – $89
Analyst targets$55 – $94
At own 5y-median P/E (42×)$45
At 5y P/E range (8–102×)$9 – $107
At sector P/E (80×)$84

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.