ADIENT PLC (ADNT) Stock Fundamental Analysis
NYSE:ADNT - New York Stock Exchange, Inc. - IE00BD845X29 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to ADNT. ADNT was compared to 81 industry peers in the Automobile Components industry. Both the profitability and financial health of ADNT have multiple concerns. ADNT scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
ADNT had positive earnings in the past year.
In the past year ADNT had a positive cash flow from operations.
In multiple years ADNT reported negative net income over the last 5 years.
In the past 5 years ADNT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -3.11%, ADNT is doing worse than 81.48% of the companies in the same industry.
Looking at the Return On Equity, with a value of -16.16%, ADNT is doing worse than 81.48% of the companies in the same industry.
With a Return On Invested Capital value of 6.40%, ADNT is not doing good in the industry: 69.14% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for ADNT is below the industry average of 9.04%.
The last Return On Invested Capital (6.40%) for ADNT is above the 3 year average (5.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.11% | ||
| ROE | -16.16% | ||
| ROIC | 6.4% |
ROA(3y)0.35%
ROA(5y)1.2%
ROE(3y)1.42%
ROE(5y)1.16%
ROIC(3y)5.11%
ROIC(5y)4.23%
1.3 Margins
In the last couple of years the Profit Margin of ADNT has declined.
With a Operating Margin value of 2.98%, ADNT is not doing good in the industry: 79.01% of the companies in the same industry are doing better.
ADNT's Operating Margin has improved in the last couple of years.
ADNT has a Gross Margin of 6.52%. This is amonst the worse of the industry: ADNT underperforms 93.83% of its industry peers.
ADNT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.98% | ||
| PM (TTM) | N/A | ||
| GM | 6.52% |
OM growth 3Y-7.97%
OM growth 5Y33.2%
PM growth 3Y-75.27%
PM growth 5YN/A
GM growth 3Y-5.89%
GM growth 5Y5.44%
2. Health
2.1 Basic Checks
ADNT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ADNT has less shares outstanding
Compared to 5 years ago, ADNT has less shares outstanding
The debt/assets ratio for ADNT has been reduced compared to a year ago.
2.2 Solvency
ADNT has an Altman-Z score of 1.81. This is not the best score and indicates that ADNT is in the grey zone with still only limited risk for bankruptcy at the moment.
ADNT's Altman-Z score of 1.81 is on the low side compared to the rest of the industry. ADNT is outperformed by 79.01% of its industry peers.
The Debt to FCF ratio of ADNT is 10.24, which is on the high side as it means it would take ADNT, 10.24 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.24, ADNT is not doing good in the industry: 71.60% of the companies in the same industry are doing better.
ADNT has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ADNT (1.45) is worse than 87.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 10.24 | ||
| Altman-Z | 1.81 |
ROIC/WACC1.15
WACC5.55%
2.3 Liquidity
A Current Ratio of 1.11 indicates that ADNT should not have too much problems paying its short term obligations.
ADNT has a Current ratio of 1.11. This is amonst the worse of the industry: ADNT underperforms 91.36% of its industry peers.
A Quick Ratio of 0.90 indicates that ADNT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.90, ADNT is doing worse than 83.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
ADNT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.24%.
Measured over the past 5 years, ADNT shows a small growth in Earnings Per Share. The EPS has been growing by 2.56% on average per year.
ADNT shows a decrease in Revenue. In the last year, the revenue decreased by -5.33%.
ADNT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.33% yearly.
EPS 1Y (TTM)-16.24%
EPS 3Y-3.98%
EPS 5Y2.56%
EPS Q2Q%27.78%
Revenue 1Y (TTM)-5.33%
Revenue growth 3Y2.4%
Revenue growth 5Y-2.33%
Sales Q2Q%-3.71%
3.2 Future
Based on estimates for the next years, ADNT will show a very strong growth in Earnings Per Share. The EPS will grow by 33.50% on average per year.
ADNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.10% yearly.
EPS Next Y-3.42%
EPS Next 2Y9.3%
EPS Next 3Y28.23%
EPS Next 5Y33.5%
Revenue Next Year-3.92%
Revenue Next 2Y-2.25%
Revenue Next 3Y-0.57%
Revenue Next 5Y1.1%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.40 indicates a reasonable valuation of ADNT.
Based on the Price/Earnings ratio, ADNT is valued a bit cheaper than the industry average as 75.31% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.53, ADNT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.45, the valuation of ADNT can be described as very cheap.
ADNT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADNT is cheaper than 69.14% of the companies in the same industry.
ADNT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.4 | ||
| Fwd PE | 7.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADNT is valued a bit cheaper than the industry average as 74.07% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADNT indicates a rather cheap valuation: ADNT is cheaper than 85.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.91 | ||
| EV/EBITDA | 3.96 |
4.3 Compensation for Growth
ADNT's earnings are expected to grow with 28.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)3.28
EPS Next 2Y9.3%
EPS Next 3Y28.23%
5. Dividend
5.1 Amount
No dividends for ADNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.47
+0.45 (+2.81%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners102.52%
Inst Owner Change-4.05%
Ins Owners0.86%
Ins Owner Change3.26%
Market Cap1.38B
Analysts51.25
Price Target16.83 (2.19%)
Short Float %5.73%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)70.49%
Min EPS beat(2)39.64%
Max EPS beat(2)101.33%
EPS beat(4)3
Avg EPS beat(4)29.7%
Min EPS beat(4)-49.75%
Max EPS beat(4)101.33%
EPS beat(8)5
Avg EPS beat(8)25.6%
EPS beat(12)7
Avg EPS beat(12)31.37%
EPS beat(16)8
Avg EPS beat(16)-9.81%
Revenue beat(2)1
Avg Revenue beat(2)1.37%
Min Revenue beat(2)-0.06%
Max Revenue beat(2)2.79%
Revenue beat(4)2
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-4.77%
Max Revenue beat(4)2.79%
Revenue beat(8)3
Avg Revenue beat(8)-0.9%
Revenue beat(12)5
Avg Revenue beat(12)-0.41%
Revenue beat(16)6
Avg Revenue beat(16)-0.9%
PT rev (1m)15.79%
PT rev (3m)-22.81%
EPS NQ rev (1m)-15.27%
EPS NQ rev (3m)-20.57%
EPS NY rev (1m)14.19%
EPS NY rev (3m)1.12%
Revenue NQ rev (1m)1.76%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.4 | ||
| Fwd PE | 7.45 | ||
| P/S | 0.1 | ||
| P/FCF | 5.91 | ||
| P/OCF | 2.85 | ||
| P/B | 0.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.96 |
EPS(TTM)1.96
EY11.9%
EPS(NY)2.21
Fwd EY13.42%
FCF(TTM)2.79
FCFY16.91%
OCF(TTM)5.77
OCFY35.05%
SpS171.2
BVpS19.66
TBVpS-5.57
PEG (NY)N/A
PEG (5Y)3.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.11% | ||
| ROE | -16.16% | ||
| ROCE | 8.43% | ||
| ROIC | 6.4% | ||
| ROICexc | 7.51% | ||
| ROICexgc | 14.72% | ||
| OM | 2.98% | ||
| PM (TTM) | N/A | ||
| GM | 6.52% | ||
| FCFM | 1.63% |
ROA(3y)0.35%
ROA(5y)1.2%
ROE(3y)1.42%
ROE(5y)1.16%
ROIC(3y)5.11%
ROIC(5y)4.23%
ROICexc(3y)6.22%
ROICexc(5y)5.21%
ROICexgc(3y)13.54%
ROICexgc(5y)10.98%
ROCE(3y)6.73%
ROCE(5y)5.58%
ROICexcg growth 3Y4.55%
ROICexcg growth 5Y38.95%
ROICexc growth 3Y0.66%
ROICexc growth 5Y34.59%
OM growth 3Y-7.97%
OM growth 5Y33.2%
PM growth 3Y-75.27%
PM growth 5YN/A
GM growth 3Y-5.89%
GM growth 5Y5.44%
F-Score4
Asset Turnover1.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 10.24 | ||
| Debt/EBITDA | 3.17 | ||
| Cap/Depr | 76.99% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 1.81 |
F-Score4
WACC5.55%
ROIC/WACC1.15
Cap/Depr(3y)73.03%
Cap/Depr(5y)79.22%
Cap/Sales(3y)1.69%
Cap/Sales(5y)1.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.24%
EPS 3Y-3.98%
EPS 5Y2.56%
EPS Q2Q%27.78%
EPS Next Y-3.42%
EPS Next 2Y9.3%
EPS Next 3Y28.23%
EPS Next 5Y33.5%
Revenue 1Y (TTM)-5.33%
Revenue growth 3Y2.4%
Revenue growth 5Y-2.33%
Sales Q2Q%-3.71%
Revenue Next Year-3.92%
Revenue Next 2Y-2.25%
Revenue Next 3Y-0.57%
Revenue Next 5Y1.1%
EBIT growth 1Y-13.88%
EBIT growth 3Y-5.76%
EBIT growth 5Y30.09%
EBIT Next Year63.86%
EBIT Next 3Y22.46%
EBIT Next 5Y23.5%
FCF growth 1Y15.84%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.05%
OCF growth 3Y30.56%
OCF growth 5Y12.01%