Versigent PLC (VGNT)

Price$45.42Cached quoteAs of 2026-09-17 09:08 UTC

AI: Fair-priced

Price checkThe shares look roughly fair: earnings appear cheap, but leverage and cash conversion limit the bargain.

At the observed market value, Versigent is worth about $3.4 billion in equity. StockAnalysis reports trailing net income of $522 million, implying roughly 6.6 times earnings. Investing.com shows enterprise value, meaning equity value plus net debt, at about 5.6 times EBITDA, or earnings before interest, taxes, depreciation and amortization. Lear trades near 5.2 times EBITDA and BorgWarner near 7.3 times, so Versigent is not obviously cheap on this debt-aware measure. Management guides to $200–300 million of free cash flow, cash left after operations and capital spending, a roughly 6–9% yield on equity value. StockAnalysis.com+3StockAnalysis.com+3Investing.com+3

Big pictureSales and margins improved, but first-half cash generation did not keep pace with reported profit growth.

The supplied quarterly history shows second-quarter revenue of $2.444 billion, up from $2.206 billion, while operating income rose to $199 million from $131 million and net income to $118 million from $107 million. Yet first-half operating cash flow was only $194 million versus $190 million a year earlier, and capital spending rose to $117 million from $79 million. That leaves about $77 million of first-half free cash flow versus $111 million previously, so stronger accounting profit has not yet produced stronger cash durability. Pasted text

Business strengthVersigent is gaining volume and improving efficiency, but meaningful leverage leaves less room for a downturn.

Liquidity is adequate but leverage is material. The supplied history records $554 million of cash, $3.54 billion of current assets, $2.532 billion of current liabilities and $2.727 billion of debt at June. The external SEC filing’s debt note reports $2.224 billion instead, a mismatch that reduces valuation confidence, but both figures imply substantial borrowing. Interest expense jumped to $36 million from $1 million year over year. Shareholders’ equity was only $85 million, while the filing reports $1.404 billion of cash plus unused revolving credit. Pasted text SEC+2SEC+2

What could change the storyStronger cash conversion would justify upside; weaker auto demand or costly commodities would expose the low multiple.

Management raised 2026 sales guidance to $9.4–$9.6 billion but kept adjusted EBITDA guidance at $950 million–$1.03 billion and free-cash-flow guidance at $200–300 million, showing that revenue growth does not automatically become cash. The inaugural $0.13 quarterly dividend would cost about $37 million annually at the current share count; no buybacks appear in the supplied cash-flow history, while stock compensation was $19 million in the first half. Shares outstanding were broadly flat from March to June. Durable margin gains and better cash conversion are the clearest upside tests. Pasted text Versigent+1

AI: News

Q2 results jumpedSecond-quarter sales and operating profit rose sharply, strengthening confidence that efficiency gains are reaching reported results.

On August 4, Versigent reported second-quarter sales of $2.444 billion, up 10.8% year over year, net income of $118 million, and adjusted EBITDA of $272 million, up 24.8%. Adjusted EBITDA margin improved to 11.1% from 9.9%. The shares closed about 9% higher that day on unusually heavy volume. The timing is consistent with a favorable market response, but it does not prove the earnings release alone caused the move. Versigent+1

Sales outlook raisedManagement raised its sales outlook but left profit and cash targets unchanged, signaling ongoing cost pressure.

The August 4 update lifted 2026 net-sales guidance to $9.4–$9.6 billion from $9.1–$9.4 billion. However, adjusted EBITDA guidance stayed at $950 million–$1.03 billion and free-cash-flow guidance stayed at $200–300 million. Management cited commodity and currency effects around the period, and the filing shows significant copper hedging. The split message matters: demand is stronger than expected, but investors still need evidence that added sales will convert into higher cash and debt capacity. Versigent+1

First dividend declaredThe board started a quarterly dividend, adding cash returns while the company still carries meaningful leverage.

The board declared its first quarterly dividend on August 3: $0.13 per share, payable September 18 to holders of record on September 4. Annualized, that is $0.52 per share, or roughly $37 million a year at the current share count. The payout is modest relative to guided free cash flow, but it establishes a recurring capital-allocation commitment soon after the spin-off. Future dividends remain discretionary, so debt service and cash generation still take priority if conditions weaken. Versigent+1

Spin-off completedVersigent began trading independently after separating from Aptiv, creating a new capital structure and standalone valuation.

Versigent completed its separation from Aptiv on April 1 and began regular trading on the New York Stock Exchange under VGNT. Aptiv holders received one Versigent share for every three Aptiv shares. The separation also reshaped Versigent’s balance sheet: the first-half filing records about $2.06 billion of proceeds from new senior notes and credit facilities and a $1.894 billion cash distribution to the former parent. That financing history is essential context for today’s leverage, interest expense and low equity valuation multiple. SEC+1

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	$8.82B	$8.31B	$8.83B	$8.02B
Operating expenses	$420.0M	$413.0M	$400.0M	$366.0M
Operating income	$662.0M	$558.0M	$635.0M	$503.0M
Operating margin	7.51%	6.72%	7.19%	6.28%
EBITDA	$889.0M	$760.0M	$840.0M	$694.0M
EBITDA margin	10.08%	9.15%	9.51%	8.66%
Net income	$492.0M	$408.0M	$423.0M	$454.0M
Net profit margin	5.58%	4.91%	4.79%	5.66%
Basic EPSper basic share	$6.92	$5.76	$5.97	$6.40
Diluted EPSper diluted share	$6.92	$5.76	$5.97	$6.40

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

15.76%of listed shares

BlackRock, Inc.11.16M shares · Jun 30, 2026

View holders

Top 20 reported holders of VGNT
Holder	% owned
BlackRock, Inc.	15.76%11.16M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	5.98%4.24M shares
ALLIANCEBERNSTEIN L.P.	4.74%3.36M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.54%3.22M shares
STATE STREET CORP	4.05%2.87M shares
FMR LLC	3.92%2.77M shares
DME Capital Management, LP	3.22%2.28M shares
GEODE CAPITAL MANAGEMENT, LLC	2.60%1.84M shares
NORGES BANK	2.13%1.51M shares
Capital International Investors	1.85%1.31M shares
GOLDMAN SACHS GROUP INC	1.77%1.26M shares
VICTORY CAPITAL MANAGEMENT INC	1.60%1.13M shares
DIMENSIONAL FUND ADVISORS LP	1.47%1.04M shares
HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC	1.47%1.04M shares
Voss Capital, LP	1.42%1.01M shares
MOORE CAPITAL MANAGEMENT, LP	1.33%940.85K shares
MORGAN STANLEY	1.31%931.19K shares
Woodline Partners LP	1.28%909.48K shares
Rubric Capital Management LP	1.21%855.16K shares
TEACHER RETIREMENT SYSTEM OF TEXAS	1.16%821.74K shares