Visteon Corporation Common Stock (VC)

FairStock Score: 57/100 — STEADY

Key Financials

Strengths

• Generates $269 million in annual free cash flow (9.2% yield on market cap)
• Solid return on equity of 13.9% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.26, providing financial flexibility
• Established organization with 10,500 employees providing operational scale

AI Analysis

Visteon Corporation Common Stock is a small-cap consumer cyclical company valued at $2.9 billion. The business generates $3.8 billion in annual revenue with a 0.8% net margin and $269 million in free cash flow. From a quality standpoint, Visteon shows Altman Z-Score of 2.8 in the grey zone and adequate 14% ROE. On valuation, the stock is reasonably priced at 15.0x earnings, with trades above its Graham Number with a negative 9% margin. Growth dynamics show revenue growing at 1.0% and profit growth of -88.5%. The 1.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 57/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $269 million in annual free cash flow (9.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer