Adient (ADNT) just turned heads after its fourth quarter adjusted earnings came in below expectations, with management also guiding for lower revenue, EBITDA, and free cash flow in fiscal 2026. This signals a tougher road ahead.
See our latest analysis for Adient.
The weak earnings update comes after a choppy run for the stock, with a 90 day share price return of minus 23.03 percent and a 1 year total shareholder return of minus 5.99 percent. This suggests momentum has been fading despite a modest year to date rebound.
If this earnings reset has you rethinking your auto exposure, it could be worth seeing what else is on the move among auto manufacturers.
With the share price sliding, a long term total return deeply negative, but the stock still trading at a hefty discount to analyst targets, investors now face a key question: is this a bargain reset, or has the market already priced in weak future growth?
Compared to Adient’s last close at $18.52, the most widely followed narrative points to a higher fair value, setting up a potential upside story.
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.
Want to see why a slow revenue ramp still supports a higher valuation? The narrative leans on rising margins, leaner share count, and a surprisingly modest earnings multiple. Curious how those pieces fit together into that fair value gap?
Result: Fair Value of $22.95 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, lingering China uncertainty and the long, restructuring-heavy road to higher European margins could easily derail the upbeat margin expansion story.
Find out about the key risks to this Adient narrative.
If you see the story differently or would rather dig into the numbers yourself, you can build a custom narrative in just a few minutes: Do it your way.
A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Adient.
Before you move on, put Simply Wall St to work and uncover fresh opportunities that could outpace Adient, using screeners tuned to different strengths and strategies.