APTV$68.05
Aptiv PLC
Moat Score
39/100
Aptiv has a real but limited moat built on deep OEM integration, validation-heavy switching costs, and engineering credibility in electrical architecture and software-defined vehicles. Its global manufacturing footprint and presence in many top-selling models support incumbency, but the company lacks strong network effects, legally protected IP, or a durable cost structure that would insulate margins across cycles. Automotive suppliers face intense bidding, frequent rebids, and price-down pressure, and Aptiv remains exposed to cyclicality and platform mix shifts. The moat is therefore narrow rather than wide, and the trend is negative as competition in wiring, electronics, and ADAS intensifies while the industry migrates to more standardized architectures.
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Financial Score
62/100
Aptiv’s most notable strength is its still-solid liquidity and ability to generate positive free cash flow despite a cyclical operating backdrop. Revenue expanded from FY2021 to FY2025 and gross margins improved, but operating margin compressed and earnings quality was distorted by one-off tax and non-operating gains, indicating weaker underlying profitability. The balance sheet remains functional, with current assets comfortably covering current liabilities, yet leverage has risen and goodwill/intangibles limit asset quality. Cash flow has stayed positive, though working-capital swings and softer TTM generation add volatility. Overall, Aptiv presents a middling but resilient profile: adequate near-term coverage, moderate growth, and acceptable cash production, offset by margin pressure, higher leverage, and uneven return metrics, consistent with its mid-range ratings.
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The most probable near-term move is a modest rebound or consolidation above the $67.75–$68.46 zone, with $69.17 and then $71.29 acting as the first upside checkpoints. The key downside risk is a loss of $66.82, which would expose $64.09 and raise the odds of a deeper retest toward the monthly $62.60 pivot.
APTV presents a mixed technical profile: the short-term trend is still constructive, but the intermediate and long-term pictures remain weighed down by the recent Death Cross and the stock’s position below the 200-day MA. Momentum indicators are not broken, yet the strong daily rebound risk is tempered by contracting volume and an RSI that is approaching overbought territory. The most important levels to watch are $67.75 and $66.82 on the downside, where near-term support begins to cluster, and $69.17 to $71.29 on the upside, where resistance will determine whether the bounce can extend into a broader recovery. The monthly $62.60 pivot remains the key structural reference.
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Frequently asked questions about Aptiv PLC
- Does Aptiv PLC (APTV) have an economic moat?
- Yes, though a limited one. Aptiv PLC earns a Narrow Moat rating with a moat score of 39/100, indicating competitive advantages expected to persist for roughly 10–20 years. Aptiv has a real but limited moat built on deep OEM integration, validation-heavy switching costs, and engineering credibility in electrical architecture and software-defined vehicles.
- What is Aptiv PLC's moat score?
- Aptiv PLC (APTV) has a moat score of 39/100 with a Narrow Moat rating and a negative moat trend. The score is a weighted average of five pillar ratings: network effects, switching costs, intangible assets, cost advantages, and efficient scale. Its strongest pillar is switching costs (5.5/10).
- Is APTV stock overvalued or undervalued?
- As of MoatScan's latest valuation, APTV appears undervalued. The AI-estimated fair value is $203.34 versus a market price of $68.05 at the time of analysis, implying roughly 199% upside to fair value. The estimate is based on a discounted cash flow (DCF) model and updates with each new financial analysis.
- What is Aptiv PLC's fair value estimate?
- MoatScan estimates Aptiv PLC's (APTV) fair value at $203.34 per share, derived from a discounted cash flow (DCF) model built on the company's reported financials, analyst growth forecasts, and a discount rate reflecting its cost of capital. See the Financial Analysis tab for the full assumptions behind the estimate.
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Disclaimer: The analysis on this page is generated by AI and is provided for informational purposes only. It does not constitute financial advice, investment recommendations, or an offer to buy or sell any security. Always conduct your own due diligence and consult a qualified financial adviser before making any investment decisions.