Analyst Note| David Whiston, CFA, CPA, CFE |
Adient finished fiscal 2021 with a quarter marred by supply chain issues beyond its control. We are leaving our fair value estimate unchanged, but as always, we’ll reassess all modeling inputs once the 10-K is filed. We continue to see more upside potential in the stock than risk of permanent investment loss, but high steel prices and the chip shortage will continue to be problems in fiscal 2022. For full-year fiscal 2021, the semiconductor shortage cost Adient about $1.9 billion in lost sales and around $450 million in adjusted EBITDA.