Adient specializes in automotive seating for all vehicle classes and all major OEMs. The company was spun off from Johnson Controls International plc in 2016.
ADNT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Adient plc. To summarize, we found that Adient plc ranked in the 2th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for ADNT, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 0.49 -- which is good for besting only 21.71% of its peer stocks (US stocks in the Consumer Cyclical sector with positive cash flow).
The company's compound free cash flow growth rate over the past 2.45 years comes in at -0.39%; that's greater than only 3.13% of US stocks we're applying DCF forecasting to.
26% of the company's capital comes from equity, which is greater than only 12.28% of stocks in our cash flow based forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CRMT, MAT, RRR, TSLA, and WH can be thought of as valuation peers to ADNT, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
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PLYMOUTH, Mich., May 8, 2020 /PRNewswire/ -- Adient (NYSE: ADNT), a global leader in automotive seating, will present at the Bank of America Global Auto Summit on Friday, May 15, 2020. Adient's president and chief executive officer, Doug Del Grosso, executive vice president and chief…