📊 ADNT Key Takeaways
Is Adient plc (ADNT) a Good Investment?
Adient faces fundamental profitability challenges despite significant revenue growth, with negative net income and razor-thin operating margins (1.1%) indicating severe operational inefficiency. The company's weak interest coverage ratio (0.8x) combined with elevated leverage (1.37x D/E) and minimal free cash flow generation (0.4% FCF margin) raises concerns about debt sustainability and financial flexibility.
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.
Why Buy Adient plc Stock? ADNT Key Strengths
- Substantial revenue base of $3.6B provides operational scale in automotive supplier market
- Positive operating cash flow of $80M demonstrates ability to generate some cash from operations
- Cash position of $855M provides near-term liquidity buffer for obligations
- 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
- Negative net margin of -0.6% indicates the company is destroying shareholder value at the bottom line
- Interest coverage ratio of 0.8x signals inability to service debt obligations from operating earnings
- Extremely low free cash flow margin (0.4%) limits deleveraging capacity and reinvestment capability
- Gross margin of only 6% suggests structural pricing power weakness or cost control issues
- Debt-to-equity of 1.37x combined with negative profitability creates financial distress risk
- 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
- Quarterly trends in gross margin expansion and operating margin improvement
- Interest coverage ratio recovery above 1.25x to ensure debt service viability
- Free cash flow growth rate and cash conversion efficiency
- Debt reduction progress and leverage ratio trending toward <1.0x
- 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 0.4% 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 |
|---|---|---|---|
| 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 |
| Q3 2023 | $3.5B | -$30.0M | $-0.32 |
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 Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ADNT's key strengths?
Claude: Substantial revenue base of $3.6B provides operational scale in automotive supplier market. Positive operating cash flow of $80M demonstrates ability to generate some cash from operations. 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: Negative net margin of -0.6% indicates the company is destroying shareholder value at the bottom line. Interest coverage ratio of 0.8x signals inability to service debt obligations from operating earnings. 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 $3.6B.
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 $-0.28.
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 rating reflects both perspectives for balanced insights.
Is ADNT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Adient plc has a SELL rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ADNT stock overvalued or undervalued?
Valuation metrics for ADNT: ROE of -1.3% (sector avg: 12%), net margin of -0.6% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy ADNT stock in 2026?
Our dual AI analysis gives Adient plc a combined SELL rating 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 $80.0M, with capital expenditures of $65.0M. FCF margin is 0.4%.
How does ADNT compare to other Automotive stocks?
Vs Automotive sector averages: Net margin -0.6% (avg: 6%), ROE -1.3% (avg: 12%), current ratio 1.09 (avg: 1.2).