Adient (ADNT): Valuation Check After EPS Miss, Weaker 2026 Guidance and Lower Analyst Expectations
Adient (ADNT) just posted a softer fourth quarter, with adjusted earnings per share coming in below expectations and down from last year, and management now guiding for lower revenue and profitability in fiscal 2026.
See our latest analysis for Adient.
The market reaction has been pretty clear, with a 1 day share price return of minus 2.37 percent and a 90 day share price return of minus 24.5 percent. However, the year to date share price return is still positive and longer term total shareholder returns remain deeply negative, suggesting momentum has faded as investors reassess the risk around future earnings.
If this earnings wobble has you rethinking the auto space, it could be worth scanning other auto manufacturers and related plays via our auto manufacturers.
With earnings estimates sliding, guidance softening, and the stock trading below analyst targets, should investors view Adient as an underappreciated turnaround story, or is the market already bracing for weaker growth ahead?
Most Popular Narrative: 19.3% Undervalued
With Adient last closing at $18.52 against a narrative fair value of $22.95, the story assumes the market is underestimating a multi year margin rebuild.
The company's established leadership in premium, comfort focused seating and its ability to deliver innovative solutions, including smart and modular seat technologies, positions it well for automakers prioritizing cabin experience and advanced safety, supporting both higher average selling prices and margin expansion in future product cycles.
Curious how modest top line growth, rising margins, and shrinking share count can still point to upside? The narrative stitches these levers into one tight valuation thesis, built on future profitability and a re rated earnings multiple under a 13.46 percent discount rate.
Result: Fair Value of $22.95 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, lingering weakness in China volumes and protracted European restructuring could delay margin gains and undermine confidence in the turnaround thesis.
Find out about the key risks to this Adient narrative.
Build Your Own Adient Narrative
If you see the story differently or want to dig into the numbers yourself, you can build a personalized view in just minutes: Do it your way.
A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Adient.
Ready for your next investing move?
Skip the noise and identify your next idea with Simply Wall Street's Screener, or you may watch others seize opportunities before you.
- Target reliable cash flow by focusing on income opportunities through these 15 dividend stocks with yields > 3% that aim to support long term total returns.
- Explore transformative innovation by scanning these 26 AI penny stocks that may reshape industries and fuel growth stories.
- Seek potential upside by zeroing in on these 908 undervalued stocks based on cash flows that the market may be mispricing today.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com