ADNT

Adient

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Consumer Cyclical

industry

Auto Parts

Exchange

NYSE

County of HQ

Ireland

Next Earnings Date

05/06/26

Business Summary

Adient is one of the world’s largest automotive seating suppliers, generating revenue by designing, manufacturing, and delivering seating systems and components to global OEMs. Its cash generation depends on high-volume, long-term supply contracts tied directly to vehicle production platforms, creating scale advantages but also heavy cyclicality. The moat is built on manufacturing footprint, engineering integration with OEM platforms, and switching costs embedded in vehicle design cycles. However, its bargaining power is constrained by concentrated customers and capital intensity, making operational execution and cost discipline the primary drivers of sustainable cash flow.

VALUATION

P/E

-

Market Cap ($M USD)

$1,599

Forward P/E

6.4

PEG

0.7

PRICE TO SALES

0.1

PRICE TO BOOK

0.9

EV / EBITDA

7.2

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

-$3.67

Next Year EPS Growth Estimate

$3.21

Next Year Revenue Growth Estimate

2.40%

Return on Equity (ROE)

-17.50%

Operating Margin

3.00%

Debt-to-Equity

1.4

Piotroski F-Score

5

Altman Z-Score

1.8

Return on Invested Capital (ROIC)

-2.30%%

Current Ratio

1.1

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 0.1x sales, 0.9x book, and a 6.4 forward P/E, the market is clearly pricing ADNT as a distressed cyclical rather than a stable compounder. The 0.7 forward PEG superficially signals growth-adjusted value, but that is undermined by a projected EPS collapse to -$3.67 next year and an operating margin of -17.50%, which screams earnings volatility. An Altman Z-Score of 1.8 places the company in financial distress territory, and with ROIC at -2.30%, capital is currently being destroyed, not compounded. This is not a quality franchise temporarily mispriced; it is a balance-sheet-constrained cyclical trading at a discount because the market doubts durability.

AI Exposure / Tech Reliance

As an Auto Parts supplier within Consumer Cyclical, ADNT sits in a manufacturing-heavy segment where AI adoption is more about operational efficiency than product disruption. Automation, predictive maintenance, and AI-driven supply chain optimization could improve its -17.50% operating margin if executed well. However, the industry’s exposure to OEM production cycles means technology is more of a cost lever than a transformative growth engine.

The Bull Case

A deep value investor could argue that at 0.1x sales and 0.9x book, the downside is largely priced in, especially with a 6.4 forward P/E and 0.7 PEG suggesting asymmetrical upside if earnings normalize. The Piotroski F-Score of 5 indicates middling but not catastrophic financial health, and a current ratio of 1.1 suggests short-term liquidity is tight but functional. Return on equity at 2.40% shows the company is still marginally profitable on equity capital, and the 1.4 TTM yield offers at least some shareholder return while waiting for a cycle turn. If margins revert from -17.50% toward even low single digits, operating leverage could materially re-rate the equity given the depressed valuation multiples.

The Bear Case

The bear case is brutal: operating margin of -17.50% combined with ROIC of -2.30% signals structural inefficiency, not just cyclical weakness. Debt to equity at 3.00% alongside an Altman Z-Score of 1.8 places the firm in a financially fragile position if cash flows deteriorate further. EPS is expected to swing from 7.2 to -$3.67 next year, which annihilates any confidence in earnings stability and makes the 6.4 forward P/E potentially meaningless. With institutional ownership at $27.73 and a consensus rating of 9.00% alongside a mean target price of 2.31, the market’s conviction appears weak, reinforcing the probability that this is a value trap rather than a misunderstood compounder.

Market Sentiment & Smart Money

Short Interest %

9.00%

Analyst Consensus

2.31

Average Analyst Price Target

$27.73

Institutional Ownership %

104.90%

1-Year Beta

1.36

Insider Buying % (6 Mo)

1.30%%

Distance to 52-Week High

74.70%%

Distance to 52-Week Low

203.40%%