LONDON, UK / ACCESSWIRE / October 16, 2017 / Pro-Trader Daily takes a closer look at Adient PLC (NYSE: ADNT) as the Company's stock will begin trading ex-dividend on October 17, 2017. To capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on October 16, 2017. Are you looking for research on dividend stocks, if so register with us now for your free membership at: http://protraderdaily.com/register/.
On September 12, 2017, Adient's Board of Directors announced that its Board declared a quarterly cash dividend of US$0.275 per ordinary share, payable on November 15, 2017, to shareholders of record at the close of business on October 18, 2017.
Adient's indicated dividend represents a yield of 1.31% compared to the average dividend yield of 2.24% for the Basic Materials sector.
Adient has a dividend payout ratio of 11.8%, which indicates that it distributes approximately $0.12 for every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, Adient is forecasted to report earnings of $10.16 for the next year, which is more than four times the Company's annualized dividend of $1.10 per share.
As of June 30, 2017, Adient's cash and cash equivalents totaled $669 million compared to $550 million as on September 30, 2016. The Company's operating cash flow was $157 million for Q3 FY 17 compared to $150 million for Q3 FY16. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.
Recent Development for Adient
On September 25, 2017, Adient announced that it has completed its acquisition of the automotive seating manufacturer Futuris Group. Adient said that it paid approximately $360 million for the business including the assumption of approximately $18 million of net debt, subject to adjustments.
Adient anticipates the transaction will add approximately $500 million in revenue on an annual basis. It is expected to be accretive to Adient's adjusted fiscal 2018 earnings per share.
Futuris operates 15 facilities in North America and Asia and provides full seating systems, seat frames, seat trim, headrests, armrests and seat bolsters. In North America, the company's primary customers include Tesla, Ford and General Motors, as well as other automotive seating suppliers. It was the first automotive seating company to focus on West Coast automakers, and has a large backlog of business with several of these customers. In Asia, customers include Geely, Chery, and Brilliance.
The acquisition is expected to provide substantial synergies through vertical integration, purchasing and logistics improvements, and by applying the best business practices and process optimization of the Adient Manufacturing System to drive operational efficiencies.
Adient is a global leader in automotive seating. With 75,000 employees operating 230 manufacturing/assembly plants in 33 countries worldwide, they produce and deliver automotive seating for all vehicle classes and all major OEMs. From complete seating systems to individual components, Adient's expertise spans every step of the automotive seat-making process. The Company's integrated, in-house skills allow it to take its products from research and design all the way to engineering and manufacturing - and into more than 25 million vehicles every year.
On Friday, October 13, 2017, the stock closed the trading session at $83.78, slightly declining 0.56% from its previous closing price of $84.25. A total volume of 343.19 thousand shares have exchanged hands. Adient's stock price surged 9.66% in the last one month, 19.84% in the past three months, and 24.54% in the previous six months. Furthermore, since the start of the year, shares of the Company have soared 42.97%. The stock has a dividend yield of 1.31% and currently has a market cap of $7.85 billion.
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