Delphi is a leading global supplier of electronics and technologies for automotive, commercial vehicle and other market segments. The company offers its products and services to global vehicle manufacturers such as General Motors, Ford Motor, Volkswagen, Daimler, Peugeot Citroen, Renault, etc. Delphi operates 110 manufacturing locations and technical centers in 30 countries. In May 2011, Delphi filed a statement with the SEC for its proposed IPO of common stock to raise USD 100 million.
At the end of May, the company announced its buy of motorized vehicles division of FCI Group based in UK for USD 959.4. With this acquisition, the company expects an increase of 24 cents per share to its 2013 earnings, excluding acquisitions related costs.
Delphi has a strong focus on research and development activities. The company’s strong focus on R&D resulted in the launch of innovative products to the market. For instance, in April 2011, the firm introduced new heating, ventilation and air conditioning systems that reduce fuel usage by 50% and help increase the range of hybrid and electric vehicles. The supplier for automotive would also profit of a recovery of global industry which was severely impacted by the crisis. Moreover, demands for hybrid electric vehicles and automotive electronics are expected to increase sharply. However, the automotive component supply industry is highly competitive. This competition is based on price, technology, quality, delivery and overall customer service. Furthermore, the company is exposed in raw material prices increase.
Fron a fundamental viewpoint, Delphi has a valuation in line with the industry and this one is low. Securities are quite cheap. For instance, the company has a PER of 7.75x for 2012 and it is decreasing to 7.00x in 2013. It is the same case for EV/EBITDA : respectively 4.26x and 3.52x. The firm has low debt : Debt/EBIDTA and Debt/EV are ones of the lowest in the industry. Although the IPO was not a long time ago, it seems that was a success. Revisions are increasing every day.
Technically, a double bottom is forming on the USD 27.3 support. If it succeeds, price would break the first USD 31.1 resistance and rise to the second one. The USD 32.3 resistance was tried several times but it had never been broken. It will be hard to cross it.
Due to graphical analysis, investors can buy the stock immediately. The target price is USD 32.3. To avoid important losses, a stop loss will be fixed at USD 27.9.
Aptiv PLC specializes in the design, manufacturing and marketing of automotive equipment. Net sales break down by family of products as follows:
- electrical and electronic architecture products (73.8%): connectors, wiring assemblies, harnesses, electrical centers, hybrid high voltage and safety distribution systems;
- electronic and safety systems (26.2%): body controls, reception systems, infotainment and connectivity systems, hybrid vehicle power electronics, passive and active safety electronics, displays and mechatronics.
At the end of 2022, the group has 131 manufacturing plants and 11 technical centers worldwide.
Net sales are distributed geographically as follows: the United States (36%), North America (0.9%), Europe/Middle East/Africa (30.7%), Asia/Pacific (30.2%) and South America (2.2%).
APTIV PLC 
