Adient Plc

Consumer Discretionary
Auto Parts:O.E.M.
www.adient.com

Earnings Score
Moat Score
Safety Score

Market Cap $1.69B
PE 94
Debt $2.41B
Cash $945.00M
EV $3.15B
FCF $277.00M

Earnings

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Sales & Net Margins

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Earnings	$18.00M
EBIT	$133.00M
ROE	1%
ROA	1%
FCF	$277.00M
Equity	$2.44B
Growth Stability	-514%
PE	93.75
PEG	-2.62
PB	0.69
P/FCF	6.09
P/S	0.11
Price/Cash	0.56
Debt/Equity	0.99
Debt/FCF	8.71
Net Margins	0%
Gross Margins	6%
Op. Margins	1%
Earnings CAGR	-2%
Sales Growth YoY	-4%
Sales Growth QoQ	-4%
Sales CAGR	-2%
FCF CAGR	3%
Equity CAGR	-8%
Earnings Stability	-0.04
Earnings Growth YoY	-41%
Earnings Growth QoQ	-818%

Earnings CAGR 5Y	-36%
Sales CAGR 5Y	2%
FCF CAGR 5Y	13%
Equity CAGR 5Y	9%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	114%
Equity CAGR 3Y	-3%
Market Cap	$1.69B
Revenue	$14.69B
Assets	$9.35B
Total Debt	$2.41B
Cash	$945.00M
Shares Outstanding	84.87M
EV	3.15B
Earnings Score	6%
Moat Score	24%
Safety Score	46%
Final Score	25%
Working Capital	408M
Current Ratio	1.11
Gross Profit	$928.00M
Shares Growth 3y	-3%
Equity Growth QoQ	10%
Equity Growth YoY	-4%

Assets & ROA

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Stockholders Equity & ROE

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Adient began trading Oct. 31, 2016, when Johnson Controls spun off its automotive experience segment into this new company. Adient is the leading seating supplier to the industry with about one third of the global market. Its share in China is now nearly 20%, down from about 45%, following the sale of its main joint venture there at the end of fiscal 2021. Unconsolidated seating revenue from joint ventures after factoring in the sale was around $4.5 billion in fiscal 2021 and guidance for consolidated China revenue after the deal (before new China COVID-19 lockdowns in Spring 2022) was slightly over $1 billion. The company is headquartered in Ireland but has corporate offices in the Detroit area. Fiscal 2021 consolidated revenue, excluding joint venture sales, was $13.7 billion.

SEC Filings

Direct access to Adient Plc (ADNT) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 31
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Adient Plc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Adient Plc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -2%

Stability -4%

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Adient Plc Discounted Cash Flow

Fully customizable DCF calculator online for Adient Plc.

Years

Calculation mode

= $3.4B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$277M	$286M	$295M	$304M	$313M	$323M	$333M	$344M	$354M	$365M	$377M	$3.8B
DCF		$260M	$243M	$228M	$214M	$201M	$188M	$176M	$165M	$155M	$145M	$1.5B
Value	$3.4B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	09/2015	09/2016	09/2017	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	09/2024	TTM
Net Margins	2%	-9%	5%	-10%	-3%	-4%	8%	-1%	1%	0%	0%
ROA	-	3%	8%	-10%	0%	-4%	13%	1%	3%	1%	1%
ROE	-	-36%	19%	-62%	-22%	-36%	41%	-5%	8%	1%	1%

Bad Net Margins (0.12%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	09/2015	09/2016	09/2017	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	09/2024	TTM
Debt over FCF	-	-2.39	20.58	23.99	-23.36	-53.84	-	55.02	6.42	8.71	8.71
Debt over Equity	-	0.81	0.76	1.26	1.71	2.81	1.42	1.09	1.05	0.99	0.99
Growth Stability	-	-	-	-	-	-	-	-514%	100%	5%	-514%

Bad Debt/FCF ratio (8.71)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.99)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-514%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	09/2015	09/2016	09/2017	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	09/2024	CAGR 5Y
Revenue YoY growth	-	-16%	-3%	8%	-5%	-23%	8%	3%	9%	-5%	2%
Earnings YoY growth	-	-436%	-157%	-292%	-71%	11%	-303%	-111%	-271%	-91%	-36%
Equity YoY growth	-	-24%	6%	-41%	-19%	-30%	77%	-13%	7%	-4%	9%
FCF YoY growth	-	2K%	-111%	-15%	-212%	-50%	-100%	-	783%	-33%	13%