📊 ADNT Key Takeaways
Is Adient plc (ADNT) a Good Investment?
Adient displays severe financial distress masked by anomalous 7631% revenue growth coupled with collapsing profitability (0.1% net margin) and catastrophic EPS decline (-1795% YoY). Dangerously weak interest coverage of 1.2x combined with 1.39x debt-to-equity leverage creates critical debt-service risk with minimal operating income cushion. Weak liquidity ratios and free cash flow of only $23M on $7.5B revenue indicate structural operational inefficiency and insufficient cash generation to support capital structure.
Adient's fundamentals point to a weak operating profile: margins are extremely thin, net income remains negative, and interest coverage below 1.0x suggests earnings are not adequately supporting debt service. While the company still has meaningful cash on hand and modestly positive free cash flow, the quality of growth is questionable given the extreme revenue jump and lack of corresponding profit improvement.
Adient plc Key Strengths (ADNT)
- Adequate liquidity cushion with $831M cash position provides near-term operational runway
- Positive operating cash flow of $161M demonstrates core business generates some cash despite low margins
- Large revenue base of $7.5B indicates meaningful market presence in automotive seating sector
- Positive operating income and free cash flow indicate the business is still generating cash despite weak profitability
- Cash balance of $855 million provides some near-term liquidity support
- Equity base of $1.74 billion offers some balance sheet cushion
ADNT Stock Risks: Adient plc Investment Risks
- Interest coverage ratio of 1.2x is critically low and leaves virtually no margin for operational decline; debt service vulnerability is acute
- Razor-thin net margin of 0.1% with profitability collapsing despite massive revenue growth signals severe operational or structural dysfunction post-restructuring
- Weak liquidity indicators (current ratio 1.10x, quick ratio 0.91x) combined with high leverage (1.39x debt-to-equity) create near-term refinancing risk
- Free cash flow of only $23M (0.3% FCF margin) is grossly insufficient to delever given $2.4B debt burden and $138M annual CapEx requirements
- EPS collapse of 1795% and net income decline of 47.1% YoY indicate deteriorating earning power and questionable quality of the revenue growth
- Net margin of -0.6% and diluted EPS deterioration show that revenue is not translating into shareholder earnings
- Interest coverage of 0.8x and debt/equity of 1.37x indicate elevated leverage risk
- Very low gross and operating margins leave little room for execution errors, cost inflation, or production volatility
Key Metrics to Watch
- Interest coverage ratio trend (must improve above 2.0x to indicate debt sustainability)
- Free cash flow trajectory and absolute level relative to debt service obligations
- Gross and operating margin recovery (currently unsustainably thin at 6.3% and 1.6%)
- Debt-to-equity ratio movement and refinancing capacity given weak credit metrics
- Return metrics (ROE, ROA) improvement from near-zero current levels
- Interest coverage and free cash flow conversion
- Operating margin and debt reduction progress
Adient plc (ADNT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.3% FCF margin may limit capital allocation flexibility.
ADNT Profit Margin, ROE & Profitability Analysis
ADNT vs Automotive Sector: How Adient plc Compares
How Adient plc compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Adient plc Stock Overvalued? ADNT Valuation Analysis 2026
Based on fundamental analysis, Adient plc shows some fundamental concerns relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Adient plc Balance Sheet: ADNT Debt, Cash & Liquidity
ADNT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Adient plc's revenue has remained relatively flat over the 5-year period, with a 7% decline. The most recent EPS of $2.15 reflects profitable operations.
ADNT Revenue Growth, EPS Growth & YoY Performance
ADNT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $3.6B | $5.0M | $0.06 |
| Q1 2026 | $3.5B | N/A | $0.00 |
| Q3 2025 | $3.7B | -$11.0M | $-0.12 |
| Q2 2025 | $3.6B | -$50.0M | $-0.55 |
| Q1 2025 | $3.5B | N/A | $0.00 |
| Q3 2024 | $3.7B | -$11.0M | $-0.12 |
| Q2 2024 | $3.8B | -$3.0M | $-0.03 |
| Q1 2024 | $3.7B | $12.0M | $0.13 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Adient plc Dividends, Buybacks & Capital Allocation
ADNT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Adient plc (CIK: 0001670541)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ADNT
What is the AI rating for ADNT?
Adient plc (ADNT) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ADNT's key strengths?
Claude: Adequate liquidity cushion with $831M cash position provides near-term operational runway. Positive operating cash flow of $161M demonstrates core business generates some cash despite low margins. ChatGPT: Positive operating income and free cash flow indicate the business is still generating cash despite weak profitability. Cash balance of $855 million provides some near-term liquidity support.
What are the risks of investing in ADNT?
Claude: Interest coverage ratio of 1.2x is critically low and leaves virtually no margin for operational decline; debt service vulnerability is acute. Razor-thin net margin of 0.1% with profitability collapsing despite massive revenue growth signals severe operational or structural dysfunction post-restructuring. ChatGPT: Net margin of -0.6% and diluted EPS deterioration show that revenue is not translating into shareholder earnings. Interest coverage of 0.8x and debt/equity of 1.37x indicate elevated leverage risk.
What is ADNT's revenue and growth?
Adient plc reported revenue of $7.5B.
Does ADNT pay dividends?
Adient plc does not currently pay dividends.
Where can I find ADNT SEC filings?
Official SEC filings for Adient plc (CIK: 0001670541) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ADNT's EPS?
Adient plc has a diluted EPS of $0.06.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ADNT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Adient plc has a C grade with 82% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ADNT stock overvalued or undervalued?
Valuation metrics for ADNT: ROE of 0.3% (sector avg: 12%), net margin of 0.1% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
What is ADNT's AI grade for 2026?
Our dual AI analysis gives Adient plc a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ADNT's free cash flow?
Adient plc's operating cash flow is $161.0M, with capital expenditures of $138.0M. FCF margin is 0.3%.
How does ADNT compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 0.1% (avg: 6%), ROE 0.3% (avg: 12%), current ratio 1.10 (avg: 1.2).