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ADNT

Adient plc – Motor Vehicle Gasoline Engine and Engine Parts Manufacturing
adient is the global leader in the $60 billion automotive seating market, with approximately 75,000 employees in 230 locations across 33 countries. with $20 billion in consolidated annual revenues, adient delivers 25 million seating systems used on more than 360 vehicle nameplates around the globe.
Analysis Results
Intrinsic Value $195.94
Latest Price $34.02
Relative Value 83% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 23.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 23.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 0.705 0.645
2025 0.873 0.731
2026 1.08 0.829
2027 1.34 0.94
2028 1.66 1.07
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 23.3 billion. This corresponds to a present value of 13.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.21 billion. Adding in the terminal value gives a total present value of 17.9 billion.

There are presently 91.2 million outstanding shares, so the intrinsic value per share is 195.94.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,316,000,000
Current Cash 1,110,000,000
Current Liabilities 3,738,000,000
Current Debt 134,000,000
Non-Cash Working Capital (NCWC) -398,000,000
Change in NCWC -127,000,000
EBIT 563,000,000
Tax Provision 0
Depreciation and Amortization 340,000,000
Capital Expenditure -252,000,000
Unlevered Free Cash Flow 524,000,000
Current Assets 4,163,000,000
Current Cash 947,000,000
Current Liabilities 3,501,000,000
Current Debt 14,000,000
Non-Cash Working Capital (NCWC) -271,000,000
Change in NCWC -509,000,000
EBIT 284,000,000
Tax Provision 94,000,000
Depreciation and Amortization 350,000,000
Capital Expenditure -227,000,000
Unlevered Free Cash Flow -196,000,000
Current Assets 5,086,000,000
Current Cash 1,521,000,000
Current Liabilities 3,511,000,000
Current Debt 184,000,000
Non-Cash Working Capital (NCWC) 238,000,000
Change in NCWC 1,057,000,000
EBIT 1,773,000,000
Tax Provision 249,000,000
Depreciation and Amortization 330,000,000
Capital Expenditure -260,000,000
Unlevered Free Cash Flow 2,593,205,698
Current Assets 4,482,000,000
Current Cash 1,692,000,000
Current Liabilities 3,819,000,000
Current Debt 210,000,000
Non-Cash Working Capital (NCWC) -819,000,000
Change in NCWC -206,000,000
EBIT 56,000,000
Tax Provision 57,000,000
Depreciation and Amortization 332,000,000
Capital Expenditure -326,000,000
Unlevered Free Cash Flow -144,000,000
Current Assets 4,116,000,000
Current Cash 924,000,000
Current Liabilities 3,835,000,000
Current Debt 30,000,000
Non-Cash Working Capital (NCWC) -613,000,000
Change in NCWC -51,000,000
EBIT 405,000,000
Tax Provision 410,000,000
Depreciation and Amortization 318,000,000
Capital Expenditure -468,000,000
Unlevered Free Cash Flow -206,000,000
Current Assets 4,309,000,000
Current Cash 687,000,000
Current Liabilities 4,192,000,000
Current Debt 8,000,000
Non-Cash Working Capital (NCWC) -562,000,000
Change in NCWC -62,000,000
EBIT 204,000,000
Tax Provision 480,000,000
Depreciation and Amortization 447,000,000
Capital Expenditure -536,000,000
Unlevered Free Cash Flow 53,000,000
Current Assets 4,499,000,000
Current Cash 709,000,000
Current Liabilities 4,328,000,000
Current Debt 38,000,000
Non-Cash Working Capital (NCWC) -500,000,000
Change in NCWC -1,905,000,000
EBIT 1,239,000,000
Tax Provision 99,000,000
Depreciation and Amortization 358,000,000
Capital Expenditure -577,000,000
Unlevered Free Cash Flow -1,000,608,859

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