ADIENT PLC (ADNT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADNT - IE00BD845X29 - Common Stock
21.36 USD
-0.23 (-1.07%)
Taking everything into account, ADNT scores 4 out of 10 in our fundamental rating. ADNT was compared to 42 industry peers in the Automobile Components industry. There are concerns on the financial health of ADNT while its profitability can be described as average. ADNT is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
- In multiple years ADNT reported negative net income over the last 5 years.
- ADNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ADNT's Return On Assets of -3.14% is on the low side compared to the rest of the industry. ADNT is outperformed by 64.29% of its industry peers.
- The Return On Equity of ADNT (-15.91%) is worse than 61.90% of its industry peers.
- ADNT has a Return On Invested Capital of 6.79%. This is comparable to the rest of the industry: ADNT outperforms 59.52% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ADNT is below the industry average of 9.10%.
- The last Return On Invested Capital (6.79%) for ADNT is above the 3 year average (6.43%), which is a sign of increasing profitability.
| 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
- ADNT has a Operating Margin (3.24%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of ADNT has grown nicely.
- With a Gross Margin value of 6.80%, 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 | 3.24% | ||
| 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ADNT is creating some value.
- Compared to 1 year ago, ADNT has less shares outstanding
- Compared to 5 years ago, ADNT has less shares outstanding
- ADNT has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.82 indicates that ADNT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ADNT has a Altman-Z score of 1.82. This is in the lower half of the industry: ADNT underperforms 64.29% of its industry peers.
- The Debt to FCF ratio of ADNT is 11.75, which is on the high side as it means it would take ADNT, 11.75 years of fcf income to pay off all of its debts.
- ADNT has a Debt to FCF ratio (11.75) which 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.
- ADNT's Debt to Equity ratio of 1.35 is on the low side compared to the rest of the industry. ADNT is outperformed by 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 11.75 | ||
| Altman-Z | 1.82 |
ROIC/WACC1.15
WACC5.92%
2.3 Liquidity
- A Current Ratio of 1.12 indicates that ADNT should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.12, 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 1.12. 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 has a worse Quick ratio (0.93) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.32% over the past year.
- ADNT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 168.24% yearly.
- ADNT shows a decrease in Revenue. In the last year, the revenue decreased by -1.04%.
- ADNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.78% yearly.
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
- Based on estimates for the next years, ADNT will show a very strong growth in Earnings Per Share. The EPS will grow by 32.61% on average per year.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- ADNT is valuated reasonably with a Price/Earnings ratio of 11.07.
- 80.95% of the companies in the same industry are more expensive than ADNT, based on the Price/Earnings ratio.
- ADNT is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 10.35, which indicates a very decent valuation of ADNT.
- 71.43% of the companies in the same industry are more expensive than ADNT, based on the Price/Forward Earnings ratio.
- ADNT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.07 | ||
| Fwd PE | 10.35 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADNT indicates a rather cheap valuation: ADNT is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.29 | ||
| EV/EBITDA | 3.95 |
4.3 Compensation for Growth
- ADNT's 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.
PEG (NY)1.59
PEG (5Y)N/A
EPS Next 2Y27.77%
EPS Next 3Y30.68%
5. Dividend
5.1 Amount
- ADNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ADIENT PLC / ADNT FAQ
What is the fundamental rating for ADNT stock?
ChartMill assigns a fundamental rating of 4 / 10 to ADNT.
What is the valuation status of ADIENT PLC (ADNT) stock?
ChartMill assigns a valuation rating of 8 / 10 to ADIENT PLC (ADNT). This can be considered as Undervalued.
How profitable is ADIENT PLC (ADNT) stock?
ADIENT PLC (ADNT) has a profitability rating of 4 / 10.
What is the valuation of ADIENT PLC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ADIENT PLC (ADNT) is 11.07 and the Price/Book (PB) ratio is 0.96.
Can you provide the expected EPS growth for ADNT stock?
The Earnings per Share (EPS) of ADIENT PLC (ADNT) is expected to grow by 6.96% in the next year.