Delphi Technologies: Why You Should Consider Buying The Stock

7:53 am ET, 06 Dec 2017

delphi automotive

Delphi Technologies (NYSE: DLPH) has been spun off from former parent Aptiv.  This global automotive-parts vendor supplies components and systems that make engines more fuel-efficient, supporting its passenger and commercial vehicle original-equipment manufacturer customers’ need to meet increasing legislated clean air standards around the world. 

OEM products include fuel injection systems, actuators, valvetrain products, sensors, electronic control modules, and power electronics technologies. 

The company also has an aftermarket parts business. Aftermarket products sold to independent retailers and wholesale distributors include engine control modules, pumps, injectors, fuel modules, ignition coils, smart remote actuators, exhaust gas recirculation valves, brakes, steering, and suspension products. 

Adam Jonas, a Morgan Stanley automotive industry analyst, sees strong near-term business for Delphi around the internal combustion engines segment.  But Delphi is also well positioned for electric vehicle (EV) adoption and growth.  As EVs take off, the Company is poised to profit through its power electronics unit. 

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Delphi Automotive plc (DLPH) Stock Guide

Updated at: 5:39 am ET, 12 Jul 2020

Before we start: if you're looking for DLPH stock price, you can quickly find it out by visiting Finny and typing "DLPH quote". If you're looking for a quick scoop on DLPH stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "DLPH". You'll get all this info in one place. Or you can just type "DLPH news" to get the latest stock news.

Looking to buy or sell Delphi Automotive plc (DLPH)? Interested in getting the full scoop on DLPH, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this DLPH stock guide, we'll address key questions about DLPH, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are DLPH earnings?
2. When is DLPH earnings date?
3. What is DLPH stock forecast (i.e., prediction)?
4. DLPH buy or sell? What is DLPH Finny Score?
5. What are the reasons to buy DLPH? Why should I buy DLPH stock?
6. What are the reasons to sell DLPH? Why should I sell DLPH stock?
7. What are DLPH key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are DLPH earnings?

DLPH trailing 12-month earnings per share (EPS) is -$0.65.

2. When is DLPH earnings date?

DLPH earnings date is May 06, 2020.

Analyst Predictions

3. What is DLPH stock forecast (i.e., prediction)?

Based on DLPH analyst price targets, DLPH stock forecast is $10.23 (for a year from now). That means the average analyst price target for DLPH stock is $10.23. The prediction is based on 10 analyst estimates.

The low price target for DLPH is $7.00, while the high price target is $17.00.

DLPH analyst rating is Buy.

Analysis

4. DLPH buy or sell? What is DLPH Finny Score?

#{finnyScore:50}Our quantitative analysis shows 5 reasons to buy and 5 reasons to sell DLPH, resulting in Finny Score of 50.

5. What are the reasons to buy DLPH? Why should I buy DLPH stock?

Here are the reasons to buy DLPH stock:

  • Owing to product segments with better-than-industry-average growth prospects like safety, electrical architecture, electronics, and engine management, we expect Delphi's revenue to grow in excess of the percentage change in global demand for new vehicles.
  • The ability to continuously innovate new process and product technologies should enable Delphi to generate excess returns over its cost of capital.
  • A global manufacturing footprint enables participation in global vehicle platforms and provides penetration in developing markets
  • DLPH profitability is improving. The YoY profit margin change was 1.49 percentage points. See DLPH profitability chart.
  • DLPH forward P/E ratio is 7.34, which is low compared to its industry peers’ P/E ratios. See DLPH forward P/E ratio chart.
  • DLPH Price/Sales ratio is 0.23, which is low compared to its industry peers’ P/S ratios. See DLPH forward Price/Sales ratio chart.
  • DLPH average analyst rating is Buy. See DLPH analyst rating chart.
  • DLPH cash to debt ratio is 0.31, higher than the average industry (0.20) and sector (0.14) cash to debt ratio. See DLPH cash to debt chart.

6. What are the reasons to sell DLPH? Why should I sell DLPH stock?

Let's look at the reasons to sell DLPH stock (i.e., the bear case):

  • The cyclical, capital-intensive nature of the automotive industry can cause companies to experience substantial swings in profitability
  • Established new-vehicle markets are highly competitive, forcing automakers to slash costs wherever possible. Standard industry supply agreements can include annual contractual price declines of up to 5%, seriously eroding vendors' margins.
  • Raw material costs including steel, copper, and aluminum are volatile, adding a degree of uncertainty to margin.
  • DLPH quarterly revenue growth was -17.90%, lower than the industry and sector average revenue growth (0.49% and 1.35%, respectively). See DLPH revenue growth chart.
  • DLPH PEG ratio (P/E adjusted for growth) is 13.28, which is high compared to its industry peers’ PEG ratios. See DLPH PEG chart.
  • DLPH average analyst price target ($10.23) is below its current price ($14.40). See DLPH price target chart.
  • DLPH short share of float is 24.25%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See DLPH short share of float chart.
  • DLPH short interest (days to cover the shorts) ratio is 5.15. The stock garners more short interest than the average industry, sector or S&P 500 stock. See DLPH short interest ratio chart.

Key Stats

7. What are DLPH key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for DLPH:

Metrics DLPH
Price $16.38
Average Price Target / Upside $10.23 / -37.55%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Auto Parts
Sector Consumer Cyclical
Number of Employees 21,000
Market Cap $963.66M
Forward P/E Ratio 7.34
Price/Book Ratio 0.23
Revenue (TTM) $4.16B
YoY Quarterly Revenue Growth -17.90%
Profit Margin -1.35%

If you liked this analysis, check out Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

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