Pitch:
– A play on a post-covid recovery in the automotive industry.
– The largest supplier globally of automotive seating.
– A mediocre business – capital-inefficient widget-maker forced to absorb pricing pressures – but one with overly punitive present valuation.
– Company expected to re-rate upon return of volumes to pre-covid levels as well as successful streamlining and restructuring efforts driving core earnings to mid-cycle (or better) levels.
Valuation: Trades at 8.5x EV/LTM EBITDA, and sub-3x FY26E EBITDA.
Exp. gain: Not specified.
Full ADNT write-up (free guest account required):
https://valueinvestorsclub.com/idea/ADIENT_PLC/9593835903