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Delphi Automotive Increased Its Annual Dividend Rate

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Delphi Automotive’s price movement

Delphi Automotive (DLPH) has a market cap of $21.0 billion. It fell by 1.2% to close at $74.95 per share as of January 12, 2016, from the current market conditions. The price movement on a weekly, monthly, and YTD (year-to-date) basis is -8.2%, -11.2%, and -12.6%, respectively.

Technically, the stock broke the support. It’s trading below all of the moving day averages. Currently, Delphi Automotive is trading 9.7% below its 20-day moving average, 10.6% below its 50-day moving average, and 8.0% below its 200-day moving average.

The First Trust US IPO (FPX) invests 2.1% of its holdings in Delphi Automotive. FPX tracks a market-cap-weighted index of the 100 largest US IPOs (initial public offering) over the first 1,000 trading days of each stock. Stocks must pass additional quantitative screens to make it into the index. FPX’s YTD price movements is -7.9% as of January 11, 2016.

Delphi Automotive’s competitors and their market caps are:

  • Autoliv (ALV) – $10.1 billion
  • Lear (LEA) – $8.5 billion
  • Visteon (VC) – $4.4 billion

Delphi Automotive hiked its dividend rate

Delphi Automotive’s board of directors increased the annual dividend rate paid to $1.16 per ordinary share. It declared a quarterly cash dividend of $0.29 per ordinary share. It’s payable on February 29, 2016, to shareholders of record at the close of business on February 17, 2016.

On January 7, 2016, Barclays gave an “overweight” rating and a $105.0 price target for Delphi Automotive.

Delphi Automotive’s performance in fiscal 3Q15

Delphi Automotive reported fiscal 3Q15 net sales of $3,631.0 million—a fall of 3.5% compared to net sales of $3,762.0 million in fiscal 3Q14. Its adjusted net income and adjusted EPS (earnings per share) rose to $365.0 million and $1.28, respectively, in fiscal 3Q15—compared to its adjusted net income and adjusted EPS of $340.0 million and $1.13, respectively, in fiscal 3Q14.

Meanwhile, its inventories and accounts receivable rose by 17.2% and 9.0%, respectively, in fiscal 3Q15—compared to fiscal 4Q14. Its DE (debt-to-equity) ratio rose to 2.9 in fiscal 3Q15—compared to its DE ratio of 2.6 in fiscal 4Q14.

On December 18, 2015, the company acquired Hellermann Tyton Group. It manufactures high-performance and innovative cable management solutions. The acquisition is valued at 1.07 billion pounds on a cash and debt-free basis.

Delphi Automotive’s PE (price-to-earnings) and PBV (price-to-book value) ratios are 16.3x and 9.2x, respectively, as of January 12, 2016.

Projection

The company made the following projections for fiscal 2015:

  • revenue of $14,935–$15,135 million
  • adjusted operating income of $1,940–$1,970 million
  • adjusted EPS of $5.15–$5.25
  • cash flow before financing of $1.10 million

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