NYSE:ADNT

Stock Analysis Report

Executive Summary

Adient plc designs, manufactures, and markets a range of seating systems and components for passenger cars, commercial vehicles, and light trucks.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Adient's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ADNT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.5%

ADNT

11.1%

US Auto Components

9.9%

US Market


1 Year Return

-29.2%

ADNT

-38.0%

US Auto Components

-11.9%

US Market

Return vs Industry: ADNT exceeded the US Auto Components industry which returned -36.5% over the past year.

Return vs Market: ADNT underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

ADNTIndustryMarket
7 Day6.5%11.1%9.9%
30 Day-61.7%-29.9%-15.0%
90 Day-56.7%-42.5%-21.5%
1 Year-29.2%-29.2%-37.0%-38.0%-10.0%-11.9%
3 Year-87.0%-87.4%-43.9%-49.6%12.3%5.1%
5 Yearn/a-36.8%-45.9%32.5%18.1%

Price Volatility Vs. Market

How volatile is Adient's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Adient undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADNT ($9.17) is trading below our estimate of fair value ($26.01)

Significantly Below Fair Value: ADNT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ADNT is unprofitable, so we can't compare its PE Ratio to the Auto Components industry average.

PE vs Market: ADNT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ADNT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ADNT is good value based on its PB Ratio (0.5x) compared to the US Auto Components industry average (0.7x).


Next Steps

Future Growth

How is Adient forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

84.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADNT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: ADNT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ADNT's is expected to become profitable in the next 3 years.

Revenue vs Market: ADNT's revenue (1.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ADNT's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ADNT's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has Adient performed over the past 5 years?

-25.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADNT is currently unprofitable.

Growing Profit Margin: ADNT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ADNT is unprofitable, and losses have increased over the past 5 years at a rate of -25.7% per year.

Accelerating Growth: Unable to compare ADNT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ADNT is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (-4.2%).


Return on Equity

High ROE: ADNT has a negative Return on Equity (-26.44%), as it is currently unprofitable.


Next Steps

Financial Health

How is Adient's financial position?


Financial Position Analysis

Short Term Liabilities: ADNT's short term assets ($3.8B) exceed its short term liabilities ($3.7B).

Long Term Liabilities: ADNT's short term assets ($3.8B) do not cover its long term liabilities ($4.6B).


Debt to Equity History and Analysis

Debt Level: ADNT's debt to equity ratio (176.9%) is considered high.

Reducing Debt: ADNT's debt to equity ratio has increased from 2.3% to 176.9% over the past 5 years.


Balance Sheet

Inventory Level: ADNT has a high level of physical assets or inventory.

Debt Coverage by Assets: ADNT's debt is covered by short term assets (assets are 1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable ADNT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ADNT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 18.9% per year.


Next Steps

Dividend

What is Adient's current dividend yield, its reliability and sustainability?

3.19%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ADNT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ADNT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ADNT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ADNT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ADNT is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ADNT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Doug Del Grosso (57yo)

1.42s

Tenure

US$14,496,754

Compensation

Mr. Douglas G. Del Grosso, also known as Doug, serves as CEO, President & Director at Adient plc since October 1, 2018. Mr. Del Grosso had served as the Chief Executive Officer of Chassix Holdings, Inc. si ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD14.50M) is above average for companies of similar size in the US market ($USD3.12M).

Compensation vs Earnings: Insufficient data to compare Doug's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Del Grosso
President1.42yrsUS$14.50m0.015% $125.6k
Jeffrey Stafeil
Executive VP & CFO3.92yrsUS$3.40m0.018% $152.8k
Cathleen Ebacher
VP, General Counsel & Secretary3.42yrsUS$1.92m0.036% $313.6k
Jian Huang
Vice Presidentno dataUS$1.36mno data
Gregory Smith
VP & Chief Accounting Officer0.42yrno data0.0089% $76.3k
Mark Oswald
Vice President of Investor Relationsno datano datano data
Renee McLeod
VP & CHRO0.83yrno datano data
Kelli Carney
Chief Purchasing Officer & VP1.17yrsno datano data

1.3yrs

Average Tenure

54yo

Average Age

Experienced Management: ADNT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Douglas Del Grosso
President1.42yrsUS$14.50m0.015% $125.6k
Richard Goodman
Independent Director3.42yrsUS$300.43k0.027% $229.7k
Barbara Samardzich
Independent Director3.42yrsUS$295.96k0.026% $226.2k
Frederick Henderson
Non-Executive Chairman of the Board1.5yrsUS$492.32k0.055% $471.2k
Peter Carlin
Independent Directorno dataUS$290.40k0.024% $206.9k
Jose Gutierrez
Independent Director1yrUS$292.21k0.023% $196.4k
Julie Bushman
Independent Director3.42yrsUS$290.40k0.027% $236.0k
Raymond Conner
Independent Director3.42yrsUS$295.96k0.030% $257.9k

3.4yrs

Average Tenure

59yo

Average Age

Experienced Board: ADNT's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ADNT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Adient plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Adient plc
  • Ticker: ADNT
  • Exchange: NYSE
  • Founded: 2016
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$860.086m
  • Shares outstanding: 93.79m
  • Website: https://www.adient.com

Number of Employees


Location

  • Adient plc
  • 25-28 North Wall Quay
  • IFSC
  • Dublin
  • Co. Dublin
  • 1
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADNTNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDOct 2016
18IDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2016

Biography

Adient plc designs, manufactures, and markets a range of seating systems and components for passenger cars, commercial vehicles, and light trucks. It offers seating systems, frames, mechanisms, foams, head restraints, armrests, trim covers, and fabrics. The company also produces instrument panels, floor consoles, door panels, overhead consoles, cockpit systems, decorative trims, and other automotive interior products. It operates in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and China. Adient plc was incorporated in 2016 and is based in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 05:08
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.