Is Adient (ADNT) a Great Value Stock Right Now?

ADNT

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Adient (ADNT - Free Report) . ADNT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.25, which compares to its industry's average of 18.52. ADNT's Forward P/E has been as high as 199.03 and as low as 8.03, with a median of 12.91, all within the past year.

Investors will also notice that ADNT has a PEG ratio of 0.34. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ADNT's industry currently sports an average PEG of 0.83. Over the last 12 months, ADNT's PEG has been as high as 5.82 and as low as 0.23, with a median of 0.29.

Another notable valuation metric for ADNT is its P/B ratio of 1.44. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.78. Within the past 52 weeks, ADNT's P/B has been as high as 1.78 and as low as 1.11, with a median of 1.44.

Finally, our model also underscores that ADNT has a P/CF ratio of 7.99. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ADNT's P/CF compares to its industry's average P/CF of 28.35. Over the past 52 weeks, ADNT's P/CF has been as high as 16.86 and as low as 2.38, with a median of 11.15.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Adient is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ADNT feels like a great value stock at the moment.

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