Adient (ADNT) AI Stock Analysis

• Market Cap: $2.05B
• Dividend Yield: N/A
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 805.1
• Beta (1Y): 1.05
• Revenue Growth: -3.00%
• EPS Growth: -447.89%
• Country: US
• Employees: 70,000
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Auto - Parts
• EPS (TTM): 0.43
• Shares Outstanding: 81,245,926
• 10 Day Avg. Volume: 1,057,773
• 30 Day Avg. Volume: 1,200,013
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.85
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 3.95
• Enterprise Value/Ebitda: 8.73
• 1Y Price Target: $24.00
• Price Target Upside: -6.10% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 66 Neutral
• Price Target: $25.00 ▼(-2.19% Downside)

Adient's overall stock score of 66 reflects a mixed but improving financial performance, strong technical momentum, and positive sentiment from the latest earnings call. The company's raised guidance and strategic positioning in the U.S. onshoring trend are significant positives. However, challenges in profitability and valuation metrics due to negative earnings weigh on the score.

Positive Factors

Customization and Versatility

Adient employs a wide range of sewing and printing techniques to create customizable looks to distinguish customer vehicles for the seat, armrest, and headrest.

Global Reach

Adient's network of more than 200 manufacturing and assembly plants worldwide supplies components and complete seats to a broad range of automotive OEM customers.

Product Innovation

Manufactured using innovative steel and hybrid materials allows light-weighting without sacrificing strength, saving space and costs for customers.

Negative Factors

Competition and Market Saturation

Adient faces intense competition in the automotive industry, which can impact its market share and profitability.

Adient Business Overview & Revenue Model

Company Description

Adient plc designs, develops, manufactures, and markets a range of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company's seating solutions include frames, mechanisms, foams, head restraints, armrests, and trim covers. It serves automotive original equipment manufacturers in the Americas, including North America and South America; Europe, Middle East, and Africa; and Asia Pacific. The company was incorporated in 2016 and is based in Dublin, Ireland.

How the Company Makes Money

Adient generates revenue primarily through the sale of automotive seating systems and components to original equipment manufacturers (OEMs) and suppliers in the automotive industry. The company operates on a business model that includes long-term contracts with automotive manufacturers, which ensures a steady stream of income. Key revenue streams include the production and supply of seat structures, foam, and trim, as well as specialized seating solutions that incorporate advanced technologies such as adjustable seating and integrated safety features. Additionally, partnerships with leading automotive brands and participation in global automotive programs contribute significantly to its earnings. Factors such as market demand for vehicles, trends in vehicle design and technology, and the overall health of the automotive industry play crucial roles in influencing Adient's financial performance.

Adient Financial Statement Overview

Summary

Adient's financial performance shows strong revenue growth but faces challenges with profitability and high leverage. The company is improving its cash flow generation, which is a positive indicator for future financial health. Overall, the financial position is moderate with room for improvement in profitability and debt management.

Income Statement

Adient's income statement shows a mixed performance. The company has achieved a positive revenue growth rate of 17.4% in the TTM, indicating a strong recovery from previous declines. However, profitability remains a concern with a negative net profit margin of -1.68% in the TTM, reflecting ongoing challenges in cost management or pricing power. The gross profit margin is relatively low at 6.53%, suggesting limited pricing flexibility or high production costs. EBIT and EBITDA margins are modest at 2.09% and 4.60% respectively, indicating some operational efficiency but room for improvement.

Balance Sheet

Adient's balance sheet reveals a moderate financial position. The debt-to-equity ratio is relatively high at 1.45, indicating significant leverage which could pose risks in a volatile market. The return on equity is negative at -10.47% in the TTM, reflecting challenges in generating returns for shareholders. However, the equity ratio stands at 20.20%, suggesting a reasonable level of equity financing relative to total assets, which provides some stability.

Cash Flow

The cash flow statement shows some positive trends for Adient. The company has achieved a free cash flow growth rate of 11.54% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.14, suggesting that cash flows are not fully aligned with reported earnings, which could be due to non-cash charges or working capital changes. The free cash flow to net income ratio is 0.48, indicating that a significant portion of net income is being converted into free cash flow, which is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.41B	14.69B	15.39B	14.12B	13.68B	12.67B
Gross Profit	959.00M	928.00M	1.03B	807.00M	826.00M	592.00M
EBITDA	434.00M	697.00M	776.00M	644.00M	2.13B	119.00M
Net Income	-195.00M	18.00M	205.00M	-40.00M	1.11B	-486.00M
Balance Sheet
Total Assets	8.84B	9.35B	9.42B	9.16B	10.76B	10.26B
Cash, Cash Equivalents and Short-Term Investments	860.00M	945.00M	1.11B	947.00M	1.52B	1.69B
Total Debt	2.39B	2.40B	2.54B	2.58B	3.70B	4.31B
Total Liabilities	6.68B	6.82B	6.82B	6.74B	7.80B	8.68B
Stockholders Equity	1.78B	2.13B	2.23B	2.07B	2.38B	1.21B
Cash Flow
Free Cash Flow	261.00M	277.00M	415.00M	47.00M	0.00	-80.00M
Operating Cash Flow	499.00M	543.00M	667.00M	274.00M	260.00M	246.00M
Investing Cash Flow	-197.00M	-253.00M	-229.00M	484.00M	347.00M	166.00M
Financing Cash Flow	-401.00M	-502.00M	-271.00M	-1.27B	-770.00M	393.00M

Adient Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADNT, the sentiment is Positive. The current price of 25.56 is above the 20-day moving average (MA) of 23.22, above the 50-day MA of 22.12, and above the 200-day MA of 17.59, indicating a bullish trend. The MACD of 0.90 indicates Negative momentum. The RSI at 72.02 is Negative, neither overbought nor oversold. The STOCH value of 88.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADNT.

Adient Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	82 Outperform	$3.48B	12.16	22.96%	0.22%	-3.26%	-45.84%
ALV	79 Outperform	$9.63B	13.59	29.99%	2.24%	-0.98%	21.64%
APTV	79 Outperform	$17.39B	13.23	15.52%	―	-2.47%	-43.12%
LEA	76 Outperform	$5.84B	12.81	9.51%	2.80%	-3.12%	-8.23%
BWA	67 Neutral	$9.43B	46.31	3.66%	1.01%	-2.12%	-69.42%
ADNT	66 Neutral	$2.05B	805.10	-11.85%	―	-3.00%	-447.89%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%

Adient Corporate Events

Adient Raises Revenue Guidance Amid Strong Q3 Performance

Adient plc reported strong business performance in the third quarter of fiscal year 2025, with improved earnings and margins compared to the previous year. The company generated solid free cash flow, enabling $50 million in additional share repurchases, and raised its revenue and adjusted EBITDA guidance for fiscal year 2025. Adient is well-positioned to benefit from onshoring trends in the U.S., with a significant portion of its North American production based domestically. The company continues to win diversified new business across all regions, particularly in EMEA and Asia, and remains focused on executing its strategic plans to drive shareholder value.

Adient Highlights Strong Performance at Deutsche Bank Conference

Adient plc announced its participation in the Deutsche Bank Global Auto Conference on June 11, 2025, where it highlighted its strong business performance in the first half of fiscal year 2025. Despite lower customer volumes, Adient achieved year-over-year improvement in its adjusted EBITDA margin and maintained a solid cash balance. The company continues to win new business and receive customer recognition, including its fourth consecutive GM Supplier of the Year award. Adient’s strategic focus on operational excellence and resilience positions it well for future growth, with ongoing restructuring in Europe and strong execution in Asia.

Adient to Discuss China Operations with Investors

In May 2025, Adient representatives are scheduled to meet with investors to discuss the company’s business operations in China. The company has achieved significant growth in the past year, winning approximately $1 billion in new business and expanding its relationships with Chinese OEMs. Adient has also upgraded its technical center in Chongqing, enhancing its capabilities in electrification and smartification of auto seating technology. Despite challenging macroeconomic conditions, Adient continues to focus on profitable growth and maintaining strong financial performance.