ADIENT PLC (ADNT)
IE00BD845X29 - Common Stock
ADNT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 42 industry peers in the Automobile Components industry. While ADNT is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ADNT.
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.
ADNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ADNT has a Return On Assets of 2.29%. This is comparable to the rest of the industry: ADNT outperforms 57.14% of its industry peers.
Looking at the Return On Equity, with a value of 9.32%, ADNT is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
ADNT has a Return On Invested Capital (6.73%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for ADNT is below the industry average of 9.30%.
The last Return On Invested Capital (6.73%) for ADNT is above the 3 year average (5.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 9.32% | ||
| ROIC | 6.73% |
ROA(3y)3.72%
ROA(5y)0.21%
ROE(3y)16.68%
ROE(5y)-4.32%
ROIC(3y)5.18%
ROIC(5y)3.47%
1.3 Margins
Looking at the Profit Margin, with a value of 1.39%, ADNT is in line with its industry, outperforming 52.38% of the companies in the same industry.
ADNT has a Operating Margin of 3.19%. This is comparable to the rest of the industry: ADNT outperforms 45.24% of its industry peers.
ADNT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 6.82%, ADNT is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
ADNT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.19% | ||
| PM (TTM) | 1.39% | ||
| GM | 6.82% |
OM growth 3Y126.34%
OM growth 5Y20.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.82%
GM growth 5Y5.13%
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.
Compared to 1 year ago, ADNT has less shares outstanding
Compared to 5 years ago, ADNT has more shares outstanding
ADNT has a better debt/assets ratio than last year.
2.2 Solvency
ADNT has an Altman-Z score of 1.99. 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.
Looking at the Altman-Z score, with a value of 1.99, ADNT is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of ADNT is 6.09, which is on the high side as it means it would take ADNT, 6.09 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.09, ADNT perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
A Debt/Equity ratio of 1.05 is on the high side and indicates that ADNT has dependencies on debt financing.
ADNT has a worse Debt to Equity ratio (1.05) than 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 6.09 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.17
WACC5.73%
2.3 Liquidity
ADNT has a Current Ratio of 1.15. This is a normal value and indicates that ADNT is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.15, ADNT is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
ADNT has a Quick Ratio of 1.15. 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 has a Quick ratio of 0.91. This is in the lower half of the industry: ADNT underperforms 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
ADNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 158.54%, which is quite impressive.
Measured over the past years, ADNT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.60% on average per year.
Looking at the last year, ADNT shows a small growth in Revenue. The Revenue has grown by 7.09% in the last year.
ADNT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.46% yearly.
EPS 1Y (TTM)158.54%
EPS 3YN/A
EPS 5Y-17.6%
EPS growth Q2Q-8.82%
Revenue 1Y (TTM)7.09%
Revenue growth 3Y6.71%
Revenue growth 5Y-2.46%
Revenue growth Q2Q-1.05%
3.2 Future
ADNT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 41.14% yearly.
Based on estimates for the next years, ADNT will show a small growth in Revenue. The Revenue will grow by 3.86% on average per year.
EPS Next Y25.46%
EPS Next 2Y38.47%
EPS Next 3Y34.7%
EPS Next 5Y41.14%
Revenue Next Year0.29%
Revenue Next 2Y1.77%
Revenue Next 3Y1.74%
Revenue Next 5Y3.86%
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
Based on the Price/Earnings ratio of 14.25, the valuation of ADNT can be described as correct.
Based on the Price/Earnings ratio, ADNT is valued cheaper than 80.95% of the companies in the same industry.
ADNT is valuated rather cheaply when we compare the Price/Earnings ratio to 24.55, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.33, which indicates a rather cheap valuation of ADNT.
Based on the Price/Forward Earnings ratio, ADNT is valued cheaper than 92.86% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ADNT to the average of the S&P500 Index (20.92), we can say ADNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 7.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADNT is valued cheaper than 80.95% of the companies in the same industry.
80.95% of the companies in the same industry are more expensive than ADNT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.6 | ||
| EV/EBITDA | 5.09 |
4.3 Compensation for Growth
ADNT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ADNT's earnings are expected to grow with 34.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)N/A
EPS Next 2Y38.47%
EPS Next 3Y34.7%
5. Dividend
5.1 Amount
ADNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ADIENT PLC
NYSE:ADNT (5/2/2024, 3:15:00 PM)
After market: 30.22 0 (0%)30.22
+0.78 (+2.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.76B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 7.33 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.56
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 9.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.19% | ||
| PM (TTM) | 1.39% | ||
| GM | 6.82% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)158.54%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y25.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.09%
Revenue growth 3Y6.71%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y