ADT INC (ADT) Fundamental Analysis & Valuation

NYSE:ADT • US00090Q1031

6.525 USD
-0.12 (-1.88%)
Last: Mar 11, 2026, 11:53 AM
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This ADT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

Overall ADT gets a fundamental rating of 5 out of 10. We evaluated ADT against 74 industry peers in the Diversified Consumer Services industry. ADT scores excellent on profitability, but there are concerns on its financial health. ADT may be a bit undervalued, certainly considering the very reasonable score on growth Finally ADT also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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.
  • ADT had positive earnings in 4 of the past 5 years.
  • 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

  • ADT's Return On Assets of 3.77% is in line compared to the rest of the industry. ADT outperforms 59.46% of its industry peers.
  • ADT has a better Return On Equity (15.77%) than 74.32% of its industry peers.
  • With a decent Return On Invested Capital value of 6.54%, ADT is doing good in the industry, outperforming 67.57% of the companies in the same industry.
  • ADT had an Average Return On Invested Capital over the past 3 years of 6.31%. This is below the industry average of 10.83%.
  • The 3 year average ROIC (6.31%) for ADT is below the current ROIC(6.54%), indicating increased profibility in the last year.
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

  • ADT's Profit Margin of 11.62% is fine compared to the rest of the industry. ADT outperforms 77.03% of its industry peers.
  • 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 95.95% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ADT has grown nicely.
  • The Gross Margin of ADT (80.83%) is better than 94.59% of its industry peers.
  • ADT's Gross Margin has improved in the last couple of years.
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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADT is destroying value.
  • Compared to 1 year ago, ADT has less shares outstanding
  • The number of shares outstanding for ADT has been reduced compared to 5 years ago.
  • 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 0.61, we must say that ADT is in the distress zone and has some risk of bankruptcy.
  • ADT has a Altman-Z score of 0.61. This is comparable to the rest of the industry: ADT outperforms 41.89% 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 64.86% 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.
  • ADT has a worse Debt to Equity ratio (1.95) than 67.57% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.95
Debt/FCF 10.74
Altman-Z 0.61
ROIC/WACC0.85
WACC7.69%
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

  • A Current Ratio of 0.93 indicates that ADT may have some problems paying its short term obligations.
  • With a Current ratio value of 0.93, ADT is not doing good in the industry: 62.16% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.73 indicates that ADT may have some problems paying its short term obligations.
  • ADT's Quick ratio of 0.73 is on the low side compared to the rest of the industry. ADT is outperformed by 66.22% of its industry peers.
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.
  • ADT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.66% yearly.
  • Looking at the last year, ADT shows a small growth in Revenue. The Revenue has grown by 4.70% in the last year.
  • The Revenue has been decreasing by -0.71% on average over the past years.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.66% yearly.
  • Based on estimates for the next years, ADT will show a small growth in Revenue. The Revenue will grow by 3.68% on average per year.
EPS Next Y6.14%
EPS Next 2Y8.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.6%
Revenue Next 2Y3.68%
Revenue Next 3YN/A
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 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 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 7.25 indicates a rather cheap valuation of ADT.
  • Compared to the rest of the industry, the Price/Earnings ratio of ADT indicates a rather cheap valuation: ADT is cheaper than 89.19% of the companies listed in the same industry.
  • ADT is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 6.83, the valuation of ADT can be described as very cheap.
  • ADT's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADT is cheaper than 94.59% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.39, ADT is valued rather cheaply.
Industry RankSector Rank
PE 7.25
Fwd PE 6.83
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

  • ADT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ADT is cheaper than 87.84% of the companies in the same industry.
  • 93.24% 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 7.47
EV/EBITDA 4.88
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • ADT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.18
PEG (5Y)N/A
EPS Next 2Y8.66%
EPS Next 3YN/A

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7

5. ADT Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.37%, ADT has a reasonable but not impressive dividend return.
  • ADT's Dividend Yield is rather good when compared to the industry average which is at 0.40. ADT pays more dividend than 97.30% of the companies in the same industry.
  • ADT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 3.37%

5.2 History

  • The dividend of ADT is nicely growing with an annual growth rate of 9.54%!
  • ADT has been paying a dividend for at least 10 years, so it has a reliable track record.
  • ADT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.54%
Div Incr Years1
Div Non Decr Years4
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

  • 31.34% of the earnings are spent on dividend by ADT. This is a low number and sustainable payout ratio.
  • The dividend of ADT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.34%
EPS Next 2Y8.66%
EPS Next 3YN/A
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 (3/11/2026, 11:53:05 AM)

6.525

-0.12 (-1.88%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)03-02
Earnings (Next)04-22
Inst Owners89.61%
Inst Owner Change-0.35%
Ins Owners1.32%
Ins Owner Change-1.05%
Market Cap5.35B
Revenue(TTM)5.13B
Net Income(TTM)595.95M
Analysts75.56
Price Target9.67 (48.2%)
Short Float %5.36%
Short Ratio3.59
Dividend
Industry RankSector Rank
Dividend Yield 3.37%
Yearly Dividend0.22
Dividend Growth(5Y)9.54%
DP31.34%
Div Incr Years1
Div Non Decr Years4
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)0%
PT rev (3m)-1.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
Industry RankSector Rank
PE 7.25
Fwd PE 6.83
P/S 1.04
P/FCF 7.47
P/OCF 2.84
P/B 1.42
P/tB N/A
EV/EBITDA 4.88
EPS(TTM)0.9
EY13.79%
EPS(NY)0.96
Fwd EY14.64%
FCF(TTM)0.87
FCFY13.38%
OCF(TTM)2.3
OCFY35.22%
SpS6.26
BVpS4.61
TBVpS-7.23
PEG (NY)1.18
PEG (5Y)N/A
Graham Number9.66
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 0.61
F-Score8
WACC7.69%
ROIC/WACC0.85
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 Y6.14%
EPS Next 2Y8.66%
EPS Next 3YN/A
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 Year3.6%
Revenue Next 2Y3.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.2%
EBIT growth 3Y21.94%
EBIT growth 5Y42.91%
EBIT Next Year101.41%
EBIT Next 3Y28.28%
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 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.


How profitable is ADT INC (ADT) stock?

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


How financially healthy is ADT INC?

The financial health rating of ADT INC (ADT) is 2 / 10.


How sustainable is the dividend of ADT INC (ADT) stock?

The dividend rating of ADT INC (ADT) is 7 / 10 and the dividend payout ratio is 31.34%.