Why is Adient plc ?
1
Poor long term growth as Net Sales has grown by an annual rate of 2.09% over the last 5 years
2
The company has declared Negative results for the last 4 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at USD 499 MM
- ROCE(HY) Lowest at -11.85%
- CASH AND EQV(HY) Lowest at USD 1,614 MM
3
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -2.22%, its profits have fallen by -54.5%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -2.22% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Adient plc for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Adient plc
-100.0%
-0.62
51.78%
S&P 500
12.83%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
2.09%
EBIT Growth (5y)
97.70%
EBIT to Interest (avg)
1.40
Debt to EBITDA (avg)
3.45
Net Debt to Equity (avg)
1.04
Sales to Capital Employed (avg)
3.25
Tax Ratio
67.89%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
7.95%
ROE (avg)
16.65%
Valuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
Price to Book Value
0.81
EV to EBIT
6.85
EV to EBITDA
3.96
EV to Capital Employed
0.91
EV to Sales
0.21
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
13.28%
ROE (Latest)
11.10%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
5What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 17.91 times
RAW MATERIAL COST(Y)
Fallen by -8.68% (YoY
NET SALES(Q)
Highest at USD 3,741 MM
NET PROFIT(Q)
At USD 37.79 MM has Grown at 52.08%
-7What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 499 MM
ROCE(HY)
Lowest at -11.85%
CASH AND EQV(HY)
Lowest at USD 1,614 MM
DEBT-EQUITY RATIO
(HY)
Highest at 100.11 %
Here's what is working for Adient plc
Inventory Turnover Ratio
Highest at 17.91 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Sales
Highest at USD 3,741 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Profit
At USD 37.79 MM has Grown at 52.08%
over average net sales of the previous four periods of USD 24.85 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Raw Material Cost
Fallen by -8.68% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Adient plc
Operating Cash Flow
Lowest at USD 499 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Cash and Eqv
Lowest at USD 1,614 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 100.11 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






