We assign a fundamental rating of 4 out of 10 to ADNT. ADNT was compared to 42 industry peers in the Automobile Components industry. ADNT has a medium profitability rating, but doesn't score so well on its financial health evaluation. ADNT scores decently on growth, while it is valued quite cheap. This could make an interesting combination.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ADNT was profitable.
In the past year ADNT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ADNT reported negative net income in multiple years.
Each year in the past 5 years ADNT had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of -3.14%, ADNT is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -15.91%, ADNT is doing worse than 61.90% of the companies in the same industry.
ADNT has a Return On Invested Capital (6.79%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ADNT is below the industry average of 9.10%.
The 3 year average ROIC (6.43%) for ADNT is below the current ROIC(6.79%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	-3.14%
ROE	-15.91%
ROIC	6.79%

ROA(3y)-0.26%

ROA(5y)1.64%

ROE(3y)-1.96%

ROE(5y)7%

ROIC(3y)6.43%

ROIC(5y)5.56%

1.3 Margins

The Operating Margin of ADNT (3.24%) is comparable to the rest of the industry.
ADNT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 6.80%, ADNT is doing worse than 85.71% of the companies in the same industry.
ADNT's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	3.24%
PM (TTM)	N/A
GM	6.8%

OM growth 3Y27.17%

OM growth 5Y65.82%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y6.98%

GM growth 5Y8.41%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ADNT is still creating some value.
ADNT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ADNT has less shares outstanding
ADNT has a worse debt/assets ratio than last year.

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 has a Altman-Z score of 1.81. This is comparable to the rest of the industry: ADNT outperforms 40.48% of its industry peers.
ADNT has a debt to FCF ratio of 11.75. This is a negative value and a sign of low solvency as ADNT would need 11.75 years to pay back of all of its debts.
The Debt to FCF ratio of ADNT (11.75) is comparable to the rest of the industry.
ADNT has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.35, ADNT is not doing good in the industry: 78.57% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	1.35
Debt/FCF	11.75
Altman-Z	1.81

ROIC/WACC1.16

WACC5.87%

2.3 Liquidity

ADNT has a Current Ratio of 1.12. This is a normal value and indicates that ADNT is financially healthy and should not expect problems in meeting its short term obligations.
ADNT has a Current ratio of 1.12. This is amonst the worse of the industry: ADNT underperforms 83.33% of its industry peers.
ADNT has a Quick Ratio of 1.12. This is a bad value and indicates that ADNT is not financially healthy enough and could expect problems in meeting its short term obligations.
ADNT's Quick ratio of 0.93 is on the low side compared to the rest of the industry. ADNT is outperformed by 66.67% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.12
Quick Ratio	0.93

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

ADNT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.32%.
Measured over the past years, ADNT shows a very strong growth in Earnings Per Share. The EPS has been growing by 168.24% on average per year.
Looking at the last year, ADNT shows a decrease in Revenue. The Revenue has decreased by -1.04% in the last year.
The Revenue has been growing slightly by 2.78% on average over the past years.

EPS 1Y (TTM)4.32%

EPS 3Y168.24%

EPS 5YN/A

EPS Q2Q%-23.53%

Revenue 1Y (TTM)-1.04%

Revenue growth 3Y0.97%

Revenue growth 5Y2.78%

Sales Q2Q%3.54%

3.2 Future

ADNT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.61% yearly.
Based on estimates for the next years, ADNT will show a small growth in Revenue. The Revenue will grow by 1.54% on average per year.

EPS Next Y6.96%

EPS Next 2Y27.77%

EPS Next 3Y30.68%

EPS Next 5Y32.61%

Revenue Next Year0.6%

Revenue Next 2Y1.4%

Revenue Next 3Y1.72%

Revenue Next 5Y1.54%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.78, which indicates a very decent valuation of ADNT.
ADNT's Price/Earnings ratio is rather cheap when compared to the industry. ADNT is cheaper than 80.95% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.32, ADNT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.08, the valuation of ADNT can be described as reasonable.
ADNT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADNT is cheaper than 73.81% 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 25.57.

		Industry Rank	Sector Rank
PE	10.78
Fwd PE	10.08

4.2 Price Multiples

ADNT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ADNT is cheaper than 95.24% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ADNT is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	8.07
EV/EBITDA	3.87

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ADNT's earnings are expected to grow with 30.68% in the coming years. This may justify a more expensive valuation.