ADT INC (ADT) Fundamental Analysis & Valuation

NYSE:ADT • US00090Q1031

Current stock price

7.545 USD
+0.01 (+0.2%)
Last:

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

  • ADT had positive earnings in the past year.
  • ADT had a positive operating cash flow in the past year.
  • Of the past 5 years ADT 4 years were profitable.
  • Each year in the past 5 years ADT had a positive operating cash flow.
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

  • Looking at the Return On Assets, with a value of 3.77%, ADT is in line with its industry, outperforming 57.53% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 15.77%, ADT is in the better half of the industry, outperforming 73.97% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 6.54%, ADT is doing good in the industry, outperforming 65.75% 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 significantly below the industry average of 15.24%.
  • 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

  • Looking at the Profit Margin, with a value of 11.62%, ADT is in the better half of the industry, outperforming 75.34% of the companies in the same industry.
  • ADT's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 25.52%, ADT belongs to the top of the industry, outperforming 94.52% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ADT has grown nicely.
  • ADT's Gross Margin of 80.83% is amongst the best of the industry. ADT outperforms 94.52% 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

  • ADT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • ADT has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for ADT has been reduced compared to 5 years ago.
  • The debt/assets ratio for ADT is higher compared to a year ago.
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

  • ADT has an Altman-Z score of 0.64. This is a bad value and indicates that ADT is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 0.64, ADT is in line with its industry, outperforming 41.10% of the companies in the same industry.
  • The Debt to FCF ratio of ADT is 10.74, which is on the high side as it means it would take ADT, 10.74 years of fcf income to pay off all of its debts.
  • ADT has a Debt to FCF ratio of 10.74. This is in the better half of the industry: ADT outperforms 61.64% of its industry peers.
  • ADT has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external 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 0.64
ROIC/WACC0.87
WACC7.49%
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.
  • Looking at the Current ratio, with a value of 0.93, ADT is doing worse than 61.64% of the companies in the same industry.
  • 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.
  • With a Quick ratio value of 0.73, ADT is not doing good in the industry: 69.86% of the companies in the same industry are doing better.
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

  • The Earnings Per Share has grown by an nice 17.95% over the past year.
  • ADT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.66% yearly.
  • ADT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.70%.
  • The Revenue has been decreasing by -0.71% on average over the past years.
EPS 1Y (TTM)17.95%
EPS 3Y53.26%
EPS 5Y-2.66%
EPS Q2Q%9.52%
Revenue 1Y (TTM)4.7%
Revenue growth 3Y-7.09%
Revenue growth 5Y-0.71%
Sales Q2Q%0.95%

3.2 Future

  • Based on estimates for the next years, ADT will show a small growth in Earnings Per Share. The EPS will grow by 5.86% on average per year.
  • ADT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.25% yearly.
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

  • The Price/Earnings ratio is 8.20, which indicates a very decent valuation of ADT.
  • Based on the Price/Earnings ratio, ADT is valued cheaper than 82.19% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.77. ADT is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 7.78 indicates a rather cheap valuation of ADT.
  • Based on the Price/Forward Earnings ratio, ADT is valued cheaply inside the industry as 93.15% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 21.75. ADT is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 8.2
Fwd PE 7.78
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADT indicates a rather cheap valuation: ADT is cheaper than 84.93% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, ADT is valued cheaply inside the industry as 90.41% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 8.64
EV/EBITDA 5.15
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 an expensive valuation of the company.
  • ADT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)13.76
PEG (5Y)N/A
EPS Next 2Y3.79%
EPS Next 3Y5.86%

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7

5. ADT Dividend Analysis

5.1 Amount

  • ADT has a Yearly Dividend Yield of 3.07%.
  • ADT's Dividend Yield is rather good when compared to the industry average which is at 0.45. ADT pays more dividend than 94.52% 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 3.07%

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.
  • 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 (5/1/2026, 2:40:10 PM)

7.545

+0.01 (+0.2%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Industry Strength80.75
Industry Growth46.58
Earnings (Last)04-30
Earnings (Next)N/A
Inst Owners89.63%
Inst Owner Change0.23%
Ins Owners1.3%
Ins Owner Change-0.66%
Market Cap6.19B
Revenue(TTM)5.13B
Net Income(TTM)595.95M
Analysts74
Price Target8.33 (10.4%)
Short Float %4.63%
Short Ratio3.13
Dividend
Industry RankSector Rank
Dividend Yield 3.07%
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 8.2
Fwd PE 7.78
P/S 1.21
P/FCF 8.64
P/OCF 3.28
P/B 1.64
P/tB N/A
EV/EBITDA 5.15
EPS(TTM)0.92
EY12.19%
EPS(NY)0.97
Fwd EY12.85%
FCF(TTM)0.87
FCFY11.57%
OCF(TTM)2.3
OCFY30.45%
SpS6.25
BVpS4.61
TBVpS-7.22
PEG (NY)13.76
PEG (5Y)N/A
Graham Number9.76591 (29.44%)
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 0.64
F-Score8
WACC7.49%
ROIC/WACC0.87
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)17.95%
EPS 3Y53.26%
EPS 5Y-2.66%
EPS Q2Q%9.52%
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%0.95%
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 7 / 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 8.2 and the Price/Book (PB) ratio is 1.64.


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.