ADNT

Adient is a global #1 automotive-seating supplier whose stock trades at just 0.1x sales and a ~$1.44B cap, yet the numbers cut both ways. The cash engine still works: FY2025 operating cash flow was $449M against $245M of capex (~$204M free cash flow), gross profit actually rose 3.6% to $961M, and the company retired 6.7% of its shares while paying $125M for buybacks. The balance sheet is serviceable — $958M cash, a 1.12x current ratio, and only $2M of current debt — so this isn't a solvency story. That cash generation plus the rock-bottom multiple is what keeps me from a sell.

But the quality trend is genuinely deteriorating. FY2025 swung to a -$281M net loss from +$18M, diluted EPS fell to -$3.39, ROE is -15.9%, the accumulated deficit deepened to -$1.17B, and equity shrank 17.2% to $1.77B. Revenue slipped 1.0% to $14.5B, extending a decline from the FY2023 $15.4B peak, and net income has now been negative or near-zero for three of the last four years. A 6.6% gross margin leaves no cushion when volumes fall.