Adient plc (ADNT)
Valuation Overview•Is Adient plc Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
Fragile underlying quality score of 28/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Highly distressed profile flashing severe fundamental warning signs.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
ADNT struggles with subpar profitability and pressured margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company exhibits steady, low-single-digit revenue growth paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (3.0%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $3.9B | -1.0% | +1.0% | +2.8% | -3.2% | |
| EBITDA | $119.0M | — | +11.0% | — | — | |
| Net Income | $27.0M | -1661.1% | -32.8% | — | — | |
| EPS (Diluted) | $0.34 | -1795.0% | — | — | — | |
| Free Cash Flow | $14.0M | -26.4% | +63.1% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 6.4% | 6.5% | 6.3% | 6.4% |
| Operating Margin | 3.0% | 3.0% | 2.5% | 1.8% |
| Net Margin | 0.4% | -0.2% | 1.4% | -1.3% |
| FCF Margin | 1.9% | 2.0% | 1.6% | -0.2% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.37 | $0.52 | +40.5% | ||
| Q1'26 | $0.18 | $0.35 | +90.2% | ||
| Q4'25 | $0.55 | $0.52 | -5.5% | ||
| Q3'25 | $0.47 | $0.45 | -4.3% | ||
| Q2'25 | $0.36 | $0.69 | +91.7% | ||
| Q1'25 | $0.24 | $0.27 | +12.5% | ||
| Q4'24 | $0.52 | $0.68 | +30.8% | ||
| Q3'24 | $0.67 | $0.32 | -52.2% |
Total return is +9.8% (1Y), lagging the benchmark by -15.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +9.0% | -0.3% | — |
| 1Y | +9.8% | -15.1% | — |
| 3YCAGR | -18.5% | -38.5% | — |
| 5YCAGR | -12.8% | -26.6% | — |
| 10YCAGR | -7.5% | -21.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Adient plc (ADNT) valuation, health, and returns.
Adient plc is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Slightly cheap versus peers compared to industry peers. undervalued (implying +120.4% upside to DCF intrinsic value of $45.74)
Adient plc has multiple valuation anchors: DCF Intrinsic Value: $45.74 | Peer Relative Fair Value: $23.38 | Wall Street Analyst Target: $28.67 (implying +38.2% upside). A convergence of these signals offers higher conviction.
Adient plc displays weak financial health with a composite quality score of 28/100, supported by a Altman Z-Score of 1.4 (distress zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 8.7%.
Adient plc returns capital via buybacks instead of dividends, carrying a 7.7% buyback yield and reducing outstanding shares by -7.9% in the last 12 months.
Adient plc's current growth trajectory is Decelerating. The company achieved -1.0% 1Y revenue growth and -1795.0% 1Y EPS growth, compared to its 3Y revenue CAGR of +1.0%.
Wall Street consensus is Hold based on 27 analysts, beating EPS expectations in 58% of recent quarters with a 2-quarter streak. The consensus price target represents a +38.2% change from current levels.
Investment risks for Adient plc include: -31.2% 1-year max drawdown, high beta (1.53x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 1.53x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.