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.

Rewards

Earnings are forecast to grow 100.21% per year

Risk Analysis

No risks detected for ADNT from our risk checks.


Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

11.6%

ADNT

2.3%

US Auto Components

1.1%

US Market


1 Year Return

25.2%

ADNT

10.4%

US Auto Components

17.8%

US Market

Return vs Industry: ADNT exceeded the US Auto Components industry which returned 10.4% over the past year.

Return vs Market: ADNT exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

ADNTIndustryMarket
7 Day11.6%2.3%1.1%
30 Day10.1%-3.2%1.4%
90 Day-7.7%2.7%3.9%
1 Year25.2%25.2%12.1%10.4%20.3%17.8%
3 Year-57.8%-59.2%2.0%-8.3%44.8%35.4%
5 Yearn/a21.0%3.7%71.3%52.4%

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?

1.18x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ADNT ($23.39) is trading above our estimate of fair value ($8.29)

Significantly Below Fair Value: ADNT is trading above our estimate of fair value.


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 (1.2x) compared to the US Auto Components industry average (1.2x).


Next Steps

Future Growth

How is Adient forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

100.2%

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 is expected to decline over the next 3 years (-1.6% per year).

High Growth Revenue: ADNT's revenue is forecast to decline over the next 3 years (-1.6% 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 (8.4%).


Next Steps

Past Performance

How has Adient performed over the past 5 years?

-31.8%

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 -31.8% 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 (4.1%).


Return on Equity

High ROE: ADNT has a negative Return on Equity (-18.21%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Adient's financial position?


Financial Position Analysis

Short Term Liabilities: ADNT's short term assets ($4.1B) exceed its short term liabilities ($3.8B).

Long Term Liabilities: ADNT's short term assets ($4.1B) do not cover its long term liabilities ($4.3B).


Debt to Equity History and Analysis

Debt Level: ADNT's debt to equity ratio (166.9%) is considered high.

Reducing Debt: ADNT's debt to equity ratio has increased from 2.8% to 166.9% 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 1.1x 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: ADNT has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ADNT has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

0.77%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years0.8%

Current dividend yield vs market & industry

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

What is the CEO of Adient's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Doug Del Grosso (57yo)

1.2yrs

Tenure

0

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 ...


Management Age and Tenure

1.2yrs

Average Tenure

54yo

Average Age

Experienced Management: ADNT's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

3.2yrs

Average Tenure

60yo

Average Age

Experienced Board: ADNT's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Management Team

  • Doug Del Grosso (57yo)

    President

    • Tenure: 1.2yrs
  • Jeff Stafeil (49yo)

    Executive VP & CFO

    • Tenure: 3.7yrs
    • Compensation: US$3.75m
  • Kelli Carney

    Chief Purchasing Officer & VP

    • Tenure: 0.9yrs
  • Mark Oswald

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Cathy Ebacher (57yo)

    VP, General Counsel & Secretary

    • Tenure: 3.2yrs
    • Compensation: US$2.05m
  • Paul W. Hoof

    Vice President of Corporate Development

    • Tenure: 3.1yrs
  • Renee McLeod

    VP & CHRO

    • Tenure: 0.6yrs
  • Gregory Smith (51yo)

    VP & Chief Accounting Officer

    • Tenure: 0.2yrs

Board Members

  • Doug Del Grosso (57yo)

    President

    • Tenure: 1.2yrs
  • John Barth (72yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$320.01k
  • Richard Goodman (71yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$300.01k
  • Barb Samardzich (61yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$290.01k
  • Fritz Henderson (60yo)

    Non-Executive Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: US$1.17m
  • Peter Carlin (46yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: US$158.51k
  • José Gutiérrez (58yo)

    Independent Director

    • Tenure: 0.8yrs
  • Julie Bushman (57yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$290.01k
  • Ray Conner (64yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$297.51k

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$2.189b
  • Shares outstanding: 93.60m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:50
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
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.