Adient (ADNT) AI Stock Analysis

• Market Cap: $1.35B
• Dividend Yield: N/A
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 805.1
• Beta (1Y): 1.02
• Revenue Growth: -5.33%
• EPS Growth: -292.58%
• Country: US
• Employees: 70,000
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Auto - Parts
• EPS (TTM): 0.69
• Shares Outstanding: 84,016,650
• 10 Day Avg. Volume: 1,004,742
• 30 Day Avg. Volume: 1,228,839
• PEG Ratio: 0.07
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $16.29
• Price Target Upside: 1.69% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

• Rating: 64 Neutral
• Price Target: $16.00 ▼(-0.12%Downside)

Adient's overall score is primarily impacted by its financial performance challenges, including negative profitability and inconsistent growth. However, positive technical indicators and strategic corporate events contribute positively. The valuation remains a concern due to negative earnings. Strong liquidity and new business wins provide some optimism.

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 makes money primarily through the manufacturing and sale of automotive seating systems and components to original equipment manufacturers (OEMs) in the automotive industry. The company's revenue model is largely centered around long-term contracts with major automotive OEMs, which include firms like Ford, General Motors, and BMW. These contracts often involve multi-year agreements that provide a steady stream of revenue. Adient's key revenue streams are derived from the sale of complete seating systems, as well as individual components such as seat frames, foam, and trim. Additionally, the company may engage in strategic partnerships and joint ventures to enhance its market reach and product offerings, contributing further to its earnings. Adient's global manufacturing footprint and extensive research and development capabilities also play a crucial role in maintaining competitiveness and securing new business with existing and potential clients.

Adient Financial Statement Overview

Summary

Adient's financial performance is moderate, marked by improvements in net profit and operational efficiency. While the income statement shows margin improvements, inconsistent revenue growth is a concern. The balance sheet indicates stable leverage with a manageable debt-to-equity ratio, while strong cash flow management suggests effective resource allocation.

Income Statement

Adient's income statement shows a moderate performance. The gross profit margin is 6.36% for TTM, reflecting a challenging cost environment. Net profit margin improved to 0.16% TTM, showing a turnaround from previous losses. Revenue growth has been inconsistent, with a decline observed in the latest TTM period. However, EBIT and EBITDA margins stand at 3.06% and 4.72% respectively, indicating some operational efficiency gains.

Balance Sheet

The balance sheet of Adient is relatively stable. The debt-to-equity ratio is 1.28 TTM, which is manageable but indicates significant leverage. Return on equity improved to 1.23% TTM, showing positive returns but room for improvement. The equity ratio of 21.99% suggests a balanced capital structure, although reliant on debt.

Cash Flow

Adient's cash flow statement is strong, with a significant improvement in free cash flow growth rate. The operating cash flow to net income ratio is robust, indicating good cash conversion, and the free cash flow to net income ratio is also positive. This suggests that the company is effectively managing its cash resources.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
14.52B	14.69B	15.39B	14.12B	13.68B	12.67B
	Gross Profit
924.00M	928.00M	1.03B	807.00M	826.00M	592.00M
	EBIT
444.00M	421.00M	479.00M	294.00M	1.80B	42.00M
	EBITDA
760.00M	697.00M	776.00M	644.00M	2.13B	119.00M
	Net Income Common Stockholders
23.00M	18.00M	205.00M	-40.00M	1.11B	-486.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
860.00M	945.00M	1.11B	947.00M	1.52B	1.69B
	Total Assets
8.53B	9.35B	9.42B	9.16B	10.76B	10.26B
	Total Debt
2.40B	2.40B	2.54B	2.58B	3.70B	4.31B
	Net Debt
1.54B	1.46B	1.43B	1.63B	2.17B	2.62B
	Total Liabilities
6.31B	6.82B	6.82B	6.74B	7.80B	8.68B
	Stockholders Equity
1.88B	2.13B	2.23B	2.07B	2.38B	1.21B
Cash Flow		Free Cash Flow
331.00M	277.00M	415.00M	47.00M	0.00	-80.00M
	Operating Cash Flow
606.00M	543.00M	667.00M	274.00M	260.00M	246.00M
	Investing Cash Flow
-243.00M	-253.00M	-229.00M	484.00M	347.00M	166.00M
	Financing Cash Flow
-444.00M	-497.00M	-271.00M	-1.27B	-770.00M	393.00M

Adient Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 16.02 is above the 20-day moving average (MA) of 15.49, above the 50-day MA of 13.46, and below the 200-day MA of 17.55, indicating a neutral trend. The MACD of 0.59 indicates Positive momentum. The RSI at 62.55 is Neutral, neither overbought nor oversold. The STOCH value of 82.03 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
APTV	81 Outperform	$14.26B	11.04	15.52%	―	-2.47%	-43.12%
VC	79 Outperform	$2.25B	7.82	25.15%	―	-1.35%	-39.06%
BWA	76 Outperform	$7.10B	25.97	5.38%	1.36%	-8.22%	-52.61%
ALV	73 Outperform	$8.16B	12.17	28.71%	2.63%	-2.29%	35.00%
LEA	73 Outperform	$4.67B	10.24	10.00%	3.48%	-3.15%	-6.70%
ADNT	64 Neutral	$1.35B	805.10	-14.33%	―	-5.33%	-292.58%
Sector *	62 Neutral	$6.88B	11.32	2.95%	3.87%	2.70%	-24.57%

Adient Corporate Events

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.

The most recent analyst rating on (ADNT) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Adient stock, see the ADNT Stock Forecast page.

Adient’s AGM 2025: Shareholders Approve Key Resolutions

On March 11, 2025, Adient held its Annual General Meeting where shareholders elected eight directors for a one-year term, ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor, and approved the compensation of executive officers. Additionally, shareholders approved the adoption of an Amended Plan and renewed the Board’s authority to issue shares and opt-out of statutory preemption rights under Irish law, indicating strong support for the company’s governance and strategic initiatives.