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. ADNT has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on ADNT.

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.
ADNT had a positive operating cash flow in the past year.
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.
Looking at the Return On Invested Capital, with a value of 6.79%, ADNT is in line with its industry, outperforming 59.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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

Looking at the Operating Margin, with a value of 3.24%, ADNT is in line with its industry, outperforming 47.62% of the companies in the same industry.
In the last couple of years the Operating Margin of ADNT has grown nicely.
The Gross Margin of ADNT (6.80%) is worse than 85.71% of its industry peers.
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

ADNT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ADNT has been reduced compared to 1 year ago.
Compared to 5 years ago, ADNT has less shares outstanding
The debt/assets ratio for ADNT is higher 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.
With a Altman-Z score value of 1.81, ADNT is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
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 in line with its industry peers.
A Debt/Equity ratio of 1.35 is on the high side and indicates that ADNT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.35, ADNT is doing worse than 78.57% of the companies in the same industry.

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

ROIC/WACC1.15

WACC5.91%

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's Current ratio of 1.12 is on the low side compared to the rest of the industry. ADNT is outperformed by 83.33% of its industry peers.
A Quick Ratio of 0.93 indicates that ADNT may have some problems paying its short term obligations.
The Quick ratio of ADNT (0.93) is worse than 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%.
The Earnings Per Share has been growing by 168.24% on average over the past years. This is a very strong growth
ADNT shows a decrease in Revenue. In the last year, the revenue decreased by -1.04%.
Measured over the past years, ADNT shows a small growth in Revenue. The Revenue has been growing by 2.78% on average per year.

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

The Earnings Per Share is expected to grow by 32.61% on average over the next years. This is a very strong growth
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.78, the valuation of ADNT can be described as very reasonable.
Based on the Price/Earnings ratio, ADNT is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.32. ADNT is valued rather cheaply when compared to this.
ADNT is valuated reasonably with a Price/Forward Earnings ratio of 10.08.
Based on the Price/Forward Earnings ratio, ADNT is valued a bit cheaper than 73.81% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.57. ADNT is valued rather cheaply when compared to this.

		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.
A more expensive valuation may be justified as ADNT's earnings are expected to grow with 30.68% in the coming years.