ADT INC (ADT) Fundamental Analysis & Valuation

NYSE:ADT • US00090Q1031

Current stock price

7.22 USD
-0.04 (-0.55%)
At close:
7.2854 USD
+0.07 (+0.91%)
Pre-Market:

This ADT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. ADT Profitability Analysis

1.1 Basic Checks

  • In the past year ADT was profitable.
  • ADT had a positive operating cash flow in the past year.
  • Of the past 5 years ADT 4 years were profitable.
  • In the past 5 years ADT always reported a positive cash flow from operatings.
ADT Yearly Net Income VS EBIT VS OCF VS FCFADT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B 1.5B

1.2 Ratios

  • The Return On Assets of ADT (3.77%) is comparable to the rest of the industry.
  • ADT has a Return On Equity of 15.77%. This is in the better half of the industry: ADT outperforms 73.97% of its industry peers.
  • ADT has a better Return On Invested Capital (6.54%) than 65.75% of its industry peers.
  • ADT had an Average Return On Invested Capital over the past 3 years of 6.31%. This is significantly below the industry average of 15.52%.
  • The last Return On Invested Capital (6.54%) for ADT is above the 3 year average (6.31%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.77%
ROE 15.77%
ROIC 6.54%
ROA(3y)3.26%
ROA(5y)1.7%
ROE(3y)13.73%
ROE(5y)6.92%
ROIC(3y)6.31%
ROIC(5y)4.54%
ADT Yearly ROA, ROE, ROICADT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 -20

1.3 Margins

  • With a decent Profit Margin value of 11.62%, ADT is doing good in the industry, outperforming 75.34% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ADT has grown nicely.
  • With an excellent Operating Margin value of 25.52%, ADT belongs to the best of the industry, outperforming 94.52% of the companies in the same industry.
  • ADT's Operating Margin has improved in the last couple of years.
  • ADT has a Gross Margin of 80.83%. This is amongst the best in the industry. ADT outperforms 94.52% of its industry peers.
  • In the last couple of years the Gross Margin of ADT has grown nicely.
Industry RankSector Rank
OM 25.52%
PM (TTM) 11.62%
GM 80.83%
OM growth 3Y31.25%
OM growth 5Y43.93%
PM growth 3Y77.58%
PM growth 5YN/A
GM growth 3Y5.88%
GM growth 5Y2.49%
ADT Yearly Profit, Operating, Gross MarginsADT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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2

2. ADT Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADT is destroying value.
  • Compared to 1 year ago, ADT has less shares outstanding
  • Compared to 5 years ago, ADT has less shares outstanding
  • Compared to 1 year ago, ADT has a worse debt to assets ratio.
ADT Yearly Shares OutstandingADT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
ADT Yearly Total Debt VS Total AssetsADT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • Based on the Altman-Z score of 0.63, we must say that ADT is in the distress zone and has some risk of bankruptcy.
  • ADT has a Altman-Z score of 0.63. This is comparable to the rest of the industry: ADT outperforms 41.10% of its industry peers.
  • ADT has a debt to FCF ratio of 10.74. This is a negative value and a sign of low solvency as ADT would need 10.74 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 10.74, ADT is in the better half of the industry, outperforming 61.64% of the companies in the same industry.
  • A Debt/Equity ratio of 1.95 is on the high side and indicates that ADT has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 1.95, ADT is doing worse than 71.23% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.95
Debt/FCF 10.74
Altman-Z 0.63
ROIC/WACC0.88
WACC7.46%
ADT Yearly LT Debt VS Equity VS FCFADT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • ADT has a Current Ratio of 0.93. This is a bad value and indicates that ADT is not financially healthy enough and could expect problems in meeting its short term obligations.
  • ADT has a Current ratio of 0.93. This is in the lower half of the industry: ADT underperforms 61.64% of its industry peers.
  • ADT has a Quick Ratio of 0.93. This is a bad value and indicates that ADT is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 0.73, ADT is doing worse than 69.86% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.93
Quick Ratio 0.73
ADT Yearly Current Assets VS Current LiabilitesADT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. ADT Growth Analysis

3.1 Past

  • ADT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.29%, which is quite impressive.
  • The Earnings Per Share has been decreasing by -2.66% on average over the past years.
  • Looking at the last year, ADT shows a small growth in Revenue. The Revenue has grown by 4.70% in the last year.
  • Measured over the past years, ADT shows a decrease in Revenue. The Revenue has been decreasing by -0.71% on average per year.
EPS 1Y (TTM)23.29%
EPS 3Y53.26%
EPS 5Y-2.66%
EPS Q2Q%15%
Revenue 1Y (TTM)4.7%
Revenue growth 3Y-7.09%
Revenue growth 5Y-0.71%
Sales Q2Q%1.27%

3.2 Future

  • ADT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.86% yearly.
  • The Revenue is expected to grow by 2.25% on average over the next years.
EPS Next Y0.6%
EPS Next 2Y3.79%
EPS Next 3Y5.86%
EPS Next 5YN/A
Revenue Next Year0.54%
Revenue Next 2Y1.72%
Revenue Next 3Y2.25%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
ADT Yearly Revenue VS EstimatesADT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B
ADT Yearly EPS VS EstimatesADT Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6 0.8 1

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8

4. ADT Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 8.02 indicates a reasonable valuation of ADT.
  • Based on the Price/Earnings ratio, ADT is valued cheaply inside the industry as 82.19% of the companies are valued more expensively.
  • ADT is valuated cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
  • ADT is valuated cheaply with a Price/Forward Earnings ratio of 7.97.
  • 93.15% of the companies in the same industry are more expensive than ADT, based on the Price/Forward Earnings ratio.
  • ADT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.12.
Industry RankSector Rank
PE 8.02
Fwd PE 7.97
ADT Price Earnings VS Forward Price EarningsADT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ADT is valued cheaply inside the industry as 84.93% of the companies are valued more expensively.
  • 90.41% of the companies in the same industry are more expensive than ADT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 8.27
EV/EBITDA 5.06
ADT Per share dataADT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 -4 6 -6

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ADT does not grow enough to justify the current Price/Earnings ratio.
  • ADT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)13.46
PEG (5Y)N/A
EPS Next 2Y3.79%
EPS Next 3Y5.86%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. ADT Dividend Analysis

5.1 Amount

  • ADT has a Yearly Dividend Yield of 3.04%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.44, ADT pays a better dividend. On top of this ADT pays more dividend than 93.15% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, ADT pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.04%

5.2 History

  • The dividend of ADT is nicely growing with an annual growth rate of 9.54%!
  • ADT has paid a dividend for at least 10 years, which is a reliable track record.
  • As ADT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)9.54%
Div Incr Years0
Div Non Decr Years5
ADT Yearly Dividends per shareADT Yearly Dividends per shareYearly Dividends per share 2016 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • ADT pays out 31.34% of its income as dividend. This is a sustainable payout ratio.
  • ADT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.34%
EPS Next 2Y3.79%
EPS Next 3Y5.86%
ADT Yearly Income VS Free CF VS DividendADT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M
ADT Dividend Payout.ADT Dividend Payout, showing the Payout Ratio.ADT Dividend Payout.PayoutRetained Earnings

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ADT Fundamentals: All Metrics, Ratios and Statistics

ADT INC

NYSE:ADT (4/27/2026, 8:04:00 PM)

Premarket: 7.2854 +0.07 (+0.91%)

7.22

-0.04 (-0.55%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)03-02
Earnings (Next)04-30
Inst Owners89.63%
Inst Owner Change0.23%
Ins Owners1.3%
Ins Owner Change-0.66%
Market Cap5.92B
Revenue(TTM)5.13B
Net Income(TTM)595.95M
Analysts74
Price Target8.33 (15.37%)
Short Float %4.63%
Short Ratio3.13
Dividend
Industry RankSector Rank
Dividend Yield 3.04%
Yearly Dividend0.22
Dividend Growth(5Y)9.54%
DP31.34%
Div Incr Years0
Div Non Decr Years5
Ex-Date03-12
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.4%
Min EPS beat(2)2.39%
Max EPS beat(2)6.41%
EPS beat(4)4
Avg EPS beat(4)8%
Min EPS beat(4)2.39%
Max EPS beat(4)13.86%
EPS beat(8)7
Avg EPS beat(8)9.84%
EPS beat(12)11
Avg EPS beat(12)95.72%
EPS beat(16)12
Avg EPS beat(16)59.38%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-2.45%
Max Revenue beat(2)-0.76%
Revenue beat(4)1
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)0.88%
Revenue beat(8)4
Avg Revenue beat(8)-0.17%
Revenue beat(12)4
Avg Revenue beat(12)-3.99%
Revenue beat(16)5
Avg Revenue beat(16)-6.51%
PT rev (1m)-13.85%
PT rev (3m)-13.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.64%
EPS NY rev (1m)-5.22%
EPS NY rev (3m)-5.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.33%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)-2.95%
Valuation
Industry RankSector Rank
PE 8.02
Fwd PE 7.97
P/S 1.15
P/FCF 8.27
P/OCF 3.14
P/B 1.57
P/tB N/A
EV/EBITDA 5.06
EPS(TTM)0.9
EY12.47%
EPS(NY)0.91
Fwd EY12.54%
FCF(TTM)0.87
FCFY12.09%
OCF(TTM)2.3
OCFY31.82%
SpS6.25
BVpS4.61
TBVpS-7.22
PEG (NY)13.46
PEG (5Y)N/A
Graham Number9.65917 (33.78%)
Profitability
Industry RankSector Rank
ROA 3.77%
ROE 15.77%
ROCE 8.84%
ROIC 6.54%
ROICexc 6.58%
ROICexgc 19.29%
OM 25.52%
PM (TTM) 11.62%
GM 80.83%
FCFM 13.96%
ROA(3y)3.26%
ROA(5y)1.7%
ROE(3y)13.73%
ROE(5y)6.92%
ROIC(3y)6.31%
ROIC(5y)4.54%
ROICexc(3y)6.34%
ROICexc(5y)4.57%
ROICexgc(3y)19%
ROICexgc(5y)14.25%
ROCE(3y)8.53%
ROCE(5y)6.14%
ROICexgc growth 3Y13.45%
ROICexgc growth 5Y32.75%
ROICexc growth 3Y22.43%
ROICexc growth 5Y42.7%
OM growth 3Y31.25%
OM growth 5Y43.93%
PM growth 3Y77.58%
PM growth 5YN/A
GM growth 3Y5.88%
GM growth 5Y2.49%
F-Score8
Asset Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 1.95
Debt/FCF 10.74
Debt/EBITDA 2.76
Cap/Depr 85.44%
Cap/Sales 22.78%
Interest Coverage 3.2
Cash Conversion 70.41%
Profit Quality 120.14%
Current Ratio 0.93
Quick Ratio 0.73
Altman-Z 0.63
F-Score8
WACC7.46%
ROIC/WACC0.88
Cap/Depr(3y)93.53%
Cap/Depr(5y)90.29%
Cap/Sales(3y)26.25%
Cap/Sales(5y)26.34%
Profit Quality(3y)99.65%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.29%
EPS 3Y53.26%
EPS 5Y-2.66%
EPS Q2Q%15%
EPS Next Y0.6%
EPS Next 2Y3.79%
EPS Next 3Y5.86%
EPS Next 5YN/A
Revenue 1Y (TTM)4.7%
Revenue growth 3Y-7.09%
Revenue growth 5Y-0.71%
Sales Q2Q%1.27%
Revenue Next Year0.54%
Revenue Next 2Y1.72%
Revenue Next 3Y2.25%
Revenue Next 5YN/A
EBIT growth 1Y6.2%
EBIT growth 3Y21.94%
EBIT growth 5Y42.91%
EBIT Next Year101.63%
EBIT Next 3Y28.8%
EBIT Next 5YN/A
FCF growth 1Y16.96%
FCF growth 3Y26.35%
FCF growth 5Y11.77%
OCF growth 1Y-0.04%
OCF growth 3Y-0.07%
OCF growth 5Y6.63%

ADT INC / ADT Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for ADT INC?

ChartMill assigns a fundamental rating of 5 / 10 to ADT.


Can you provide the valuation status for ADT INC?

ChartMill assigns a valuation rating of 8 / 10 to ADT INC (ADT). This can be considered as Undervalued.


What is the profitability of ADT stock?

ADT INC (ADT) has a profitability rating of 7 / 10.


What is the valuation of ADT INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ADT INC (ADT) is 8.02 and the Price/Book (PB) ratio is 1.57.


What is the expected EPS growth for ADT INC (ADT) stock?

The Earnings per Share (EPS) of ADT INC (ADT) is expected to grow by 0.6% in the next year.