iverpak
$APTV This is an interesting story. This is a 5-6x EV/EBITDA company trading near 10-year lows, but 2/3 EBITDA comes from Engineered Components (connector business) growing mid-single digits and a fast-growing non-auto mix (data center, A&D, industrials). Arguably that business line deserves a higher multiple, not 13x that TE Connectivity trades at, but a 9x EV/EBITDA multiple would cover Aptiv’s enterprise value and give you Intelligent Systems for free. That portfolio review catalyst in 1Q27 could unlock value (sell weaker product lines, pay down debt, move towards a higher multiple business). High single digit FCF yield going 100% towards buybacks in a weak auto backdrop signals management confidence. 2x net leverage looks manageable.
