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:
Below please find a table outlining a discounted cash flow forecast for ADNT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Adient plc ranked in the 56th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 90.17%. In terms of the factors that were most noteworthy in this DCF analysis for ADNT, they are:
18% of the company's capital comes from equity, which is greater than merely 10.04% of stocks in our cash flow based forecasting set.
Adient plc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.04. This coverage rate is greater than that of merely 16.94% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Adient plc experienced a tax rate of about 98% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 97.27% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
VIRC, NVR, AXL, HABT, and LEE 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.