Examining Visteon’s Debt: Is It Too Much?

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Despite its longevity in the automotive industry, there are some questions about the company’s financial health and its level of debt. Does Visteon ($NASDAQ:VC) have an excessive amount of debt? When examining Visteon’s debt, there are several metrics that should be considered. Although this is a substantial amount, it is important to note that the company also has a substantial amount of cash on hand, which offsets some of the debt. The primary concern about Visteon’s debt comes from its recent performance. The company has been losing money for the past two years, leading some to question if they can manage their current debt levels. Furthermore, Visteon’s credit rating has been downgraded multiple times in recent years, indicating that the company is having difficulty meeting its financial obligations. Overall, while Visteon does have a significant amount of debt, it is important to remember that the company also has substantial cash reserves and a relatively low debt to equity ratio. Therefore, it seems likely that Visteon will be able to manage its debt going forward.

However, investors should keep an eye on the company’s performance and credit rating going forward to ensure that it is able to remain financially healthy.

Stock Price

The financial health of VISTEON CORPORATION is a topic of discussion among investors. On Thursday, its stock opened at $121.3 and closed at $118.7, a decrease of 2.1% from the previous closing price of 121.2. This decrease has caused many to question if the company has too much debt. Over the past few years, VISTEON CORPORATION has taken on large amounts of debt to finance its operations and to expand its business. Analysts have noted that while VISTEON CORPORATION’s debt levels are high, they are manageable and have not significantly impacted its operations. Investors have also expressed concerns over VISTEON CORPORATION’s ability to pay its debts.

However, analysts point out that the company has sufficient cash on hand to pay off its short-term debt obligations and is well-positioned to pay off its long-term debt obligations when they come due. The verdict on VISTEON CORPORATION’s debt levels is still out, and investors will continue to monitor the company closely to see if it is able to remain healthy despite its large amount of debt. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Visteon Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Visteon Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Visteon Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Visteon Corporation are shown below. More…

Analysis

GoodWhale has conducted an analysis of VISTEON CORPORATION‘s fundamentals. The results of the Star Chart analysis indicate that VISTEON CORPORATION has a high health score of 9/10 with regard to its cashflows and debt, and is capable of paying off debt and funding future operations. Additionally, VISTEON CORPORATION is classified as a ‘Cheetah’ type of company, which means that it has achieved high revenue or earnings growth, but is considered to be less stable due to lower profitability. Given the strengths and weaknesses of VISTEON CORPORATION, investors may be interested in taking advantage of the company’s high growth potential. In particular, VISTEON CORPORATION is strong in cashflows and debt, medium in asset, growth, and profitability, but weak in dividend. The combination of these strengths and weaknesses can make VISTEON CORPORATION an attractive investment for investors looking for high returns in the long-term. More…

Peers

Visteon Corp is one of the world’s leading suppliers of automotive electronics and information technology solutions. The company’s products are used in a wide range of vehicles, from cars and trucks to agricultural and construction equipment. Visteon has a strong presence in North America, Europe, Asia, and South America. The company’s main competitors are Stoneridge Inc, Tung Thih Electronic Co Ltd, Nanjng YueBoo Power System Co Ltd.

– Stoneridge Inc ($NYSE:SRI)

The company’s market cap is 619.76M as of 2022 and its ROE is -4.91%. Stoneridge Inc is a manufacturer of electrical and electronic components and systems for the automotive, commercial, motorcycle, and off-highway vehicle markets. The company’s products include engine management systems, electronic control units, sensors, and actuators.

– Tung Thih Electronic Co Ltd ($TPEX:3552)

Tung Thih Electronic Co Ltd is a publicly traded company with a market capitalization of 12.15 billion as of 2022. The company has a return on equity of 9.05%. Tung Thih Electronic Co Ltd is engaged in the manufacturing and sale of electronic products. The company’s products include digital cameras, mobile phones, and tablets.

– Nanjng YueBoo Power System Co Ltd ($SZSE:300742)

Nanjing Yuebo Power System Co Ltd is a Chinese company that manufactures and sells power generation equipment. The company has a market capitalization of 1.72 billion as of 2022 and a return on equity of -665.04%. The company’s products include diesel generators, gas generators, and solar power systems. Nanjing Yuebo Power System Co Ltd is headquartered in Nanjing, Jiangsu Province, China.

Summary

Visteon Corporation is a global automotive supplier that designs, engineers and manufactures components for car manufacturers. Investing analysis of Visteon shows that the company has a significant amount of debt, which poses some concerns for investors. This high level of debt could put strain on the company’s balance sheet if the economy experiences a downturn.

Additionally, Visteon’s net income has declined in recent years, meaning the company may not have as much capital to pay back its debt. Investors should carefully consider these factors when deciding whether or not to invest in Visteon’s stock.