NYSE:ADNT

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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

Rewards

Trading at 43.6% below our estimate of its fair value

Earnings are forecast to grow 69.27% per year

Risk Analysis

No risks detected for ADNT from our risk checks.


Snowflake Analysis

Moderate growth potential and slightly overvalued.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: ADNT's weekly volatility has decreased from 15% to 8% over the past year.


Market Performance


7 Day Return

6.3%

ADNT

0.3%

US Auto Components

0.7%

US Market


1 Year Return

56.2%

ADNT

19.8%

US Auto Components

22.2%

US Market

Return vs Industry: ADNT exceeded the US Auto Components industry which returned 21.2% over the past year.

Return vs Market: ADNT exceeded the US Market which returned 22.7% over the past year.


Shareholder returns

ADNTIndustryMarket
7 Day6.3%0.3%0.7%
30 Day51.3%20.6%11.8%
90 Day82.6%24.6%8.6%
1 Year56.2%56.2%20.8%19.8%25.0%22.2%
3 Year-57.2%-58.2%1.6%-5.2%49.4%39.5%
5 Yearn/a37.5%15.3%100.2%78.1%

Long-Term 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?

43.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADNT ($32.73) is trading below our estimate of fair value ($58.01)

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 US 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 overvalued based on its PB Ratio (2.5x) compared to the US Auto Components industry average (2x).


Next Steps

Future Growth

How is Adient forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

69.3%

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 (2.2%).

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 (4.1% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: ADNT's revenue (4.1% 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 (15.1%).


Next Steps

Past Performance

How has Adient performed over the past 5 years?

-16.1%

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 16.1% 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 (-10.3%).


Return on Equity

High ROE: ADNT has a negative Return on Equity (-30.8%), 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 ($4.5B) exceed its short term liabilities ($3.8B).

Long Term Liabilities: ADNT's short term assets ($4.5B) do not cover its long term liabilities ($4.9B).


Debt to Equity History and Analysis

Debt Level: ADNT's debt to equity ratio (273%) is considered high.

Reducing Debt: ADNT's debt to equity ratio has increased from 1% to 273% over the past 5 years.


Balance Sheet


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 current dividend yield, its reliability and sustainability?

0.28%

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 recent payouts.

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

1.9yrs

Average management tenure


CEO

Doug Del Grosso (58 yo)

2.17yrs

Tenure

US$14,496,754

Compensation

Mr. Douglas G. Del Grosso, also known as Doug, serves as Director at Cabot Corporation since April 30, 2020. He serves as CEO, President & Director at Adient plc since October 1, 2018. Mr. Del Grosso had s...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD14.50M) is above average for companies of similar size in the US market ($USD5.21M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Del Grosso
President2.17yrsUS$14.50m0.055%
$ 1.7m
Jeffrey Stafeil
Executive VP & CFO4.67yrsUS$3.40m0.038%
$ 1.2m
Jerome Dorlack
Vice President of Americasno dataUS$2.99m0.011%
$ 355.1k
Jian Huang
Vice Presidentno dataUS$1.36mno data
Gregory Smith
VP & Chief Accounting Officer1.17yrsno data0.017%
$ 515.9k
Mark Oswald
Vice President of Investor Relationsno datano datano data
Heather Tiltmann
Acting VPno datano data0.029%
$ 906.2k
Renee McLeod
VP & CHRO1.58yrsno datano data
Kelli Carney
Chief Purchasing Officer & VP1.92yrsno datano data

1.9yrs

Average Tenure

51yo

Average Age

Experienced Management: ADNT's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Douglas Del Grosso
President2.17yrsUS$14.50m0.055%
$ 1.7m
Richard Goodman
Independent Director4.17yrsUS$300.43k0.027%
$ 830.0k
Barbara Samardzich
Independent Director4.17yrsUS$295.96k0.026%
$ 816.9k
Frederick Henderson
Non-Executive Chairman of the Board2.25yrsUS$492.32k0.055%
$ 1.7m
Peter Carlin
Independent Directorno dataUS$290.40k0.024%
$ 747.3k
Jose Gutierrez
Independent Director1.75yrsUS$292.21k0.023%
$ 709.6k
Julie Bushman
Independent Director4.17yrsUS$290.40k0.027%
$ 852.4k
Raymond Conner
Independent Director4.17yrsUS$295.96k0.030%
$ 931.7k

4.2yrs

Average Tenure

60yo

Average Age

Experienced Board: ADNT's board of directors are considered experienced (4.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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$3.110b
  • Shares outstanding: 93.89m
  • 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. The company’s products include frames, mechanisms, foams, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 23:05
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.