ADT INC (ADT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADT - US00090Q1031 - Common Stock
8.13 USD
-0.01 (-0.12%)
8.13 USD
0 (0%)
ADT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 77 industry peers in the Diversified Consumer Services industry. ADT has an excellent profitability rating, but there are concerns on its financial health. ADT is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year ADT was profitable.
ADT had a positive operating cash flow in the past year.
In multiple years ADT reported negative net income over the last 5 years.
Each year in the past 5 years ADT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ADT (4.01%) is better than 63.64% of its industry peers.
ADT's Return On Equity of 17.51% is amongst the best of the industry. ADT outperforms 81.82% of its industry peers.
The Return On Invested Capital of ADT (6.65%) is better than 68.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADT is below the industry average of 9.07%.
The last Return On Invested Capital (6.65%) for ADT is above the 3 year average (5.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 17.51% | ||
| ROIC | 6.65% |
ROA(3y)2.26%
ROA(5y)0.17%
ROE(3y)9.77%
ROE(5y)-0.4%
ROIC(3y)5.35%
ROIC(5y)3.49%
1.3 Margins
ADT has a better Profit Margin (12.53%) than 76.62% of its industry peers.
ADT has a better Operating Margin (25.25%) than 94.81% of its industry peers.
In the last couple of years the Operating Margin of ADT has grown nicely.
The Gross Margin of ADT (80.92%) is better than 93.51% of its industry peers.
In the last couple of years the Gross Margin of ADT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.25% | ||
| PM (TTM) | 12.53% | ||
| GM | 80.92% |
OM growth 3Y192.77%
OM growth 5Y30.57%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.32%
GM growth 5Y2.56%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADT is destroying value.
The number of shares outstanding for ADT has been reduced compared to 1 year ago.
Compared to 5 years ago, ADT has more shares outstanding
Compared to 1 year ago, ADT has an improved debt to assets ratio.
2.2 Solvency
ADT has an Altman-Z score of 0.61. This is a bad value and indicates that ADT is not financially healthy and even has some risk of bankruptcy.
ADT's Altman-Z score of 0.61 is on the low side compared to the rest of the industry. ADT is outperformed by 61.04% of its industry peers.
The Debt to FCF ratio of ADT is 9.92, which is on the high side as it means it would take ADT, 9.92 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 9.92, ADT is doing good in the industry, outperforming 63.64% of the companies in the same industry.
ADT has a Debt/Equity ratio of 1.99. This is a high value indicating a heavy dependency on external financing.
ADT's Debt to Equity ratio of 1.99 is on the low side compared to the rest of the industry. ADT is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 9.92 | ||
| Altman-Z | 0.61 |
ROIC/WACC0.93
WACC7.13%
2.3 Liquidity
ADT has a Current Ratio of 0.67. 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 0.67. This is in the lower half of the industry: ADT underperforms 77.92% of its industry peers.
A Quick Ratio of 0.54 indicates that ADT may have some problems paying its short term obligations.
The Quick ratio of ADT (0.54) is worse than 80.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.54% over the past year.
ADT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.53% yearly.
ADT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.20%.
ADT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.90% yearly.
EPS 1Y (TTM)11.54%
EPS 3Y93.99%
EPS 5Y-7.53%
EPS Q2Q%15%
Revenue 1Y (TTM)5.2%
Revenue growth 3Y-2.64%
Revenue growth 5Y-0.9%
Sales Q2Q%4.34%
3.2 Future
Based on estimates for the next years, ADT will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.05% on average per year.
The Revenue is expected to grow by 4.30% on average over the next years.
EPS Next Y22.28%
EPS Next 2Y15.12%
EPS Next 3Y14.05%
EPS Next 5YN/A
Revenue Next Year5.37%
Revenue Next 2Y4.53%
Revenue Next 3Y4.3%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ADT is valuated reasonably with a Price/Earnings ratio of 9.34.
85.71% of the companies in the same industry are more expensive than ADT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ADT to the average of the S&P500 Index (26.38), we can say ADT is valued rather cheaply.
A Price/Forward Earnings ratio of 8.40 indicates a reasonable valuation of ADT.
ADT's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADT is cheaper than 92.21% of the companies in the same industry.
ADT is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.34 | ||
| Fwd PE | 8.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADT is valued cheaper than 88.31% of the companies in the same industry.
ADT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADT is cheaper than 94.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.47 | ||
| EV/EBITDA | 5.42 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ADT may justify a higher PE ratio.
ADT's earnings are expected to grow with 14.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y15.12%
EPS Next 3Y14.05%
5. Dividend
5.1 Amount
ADT has a Yearly Dividend Yield of 2.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.33, ADT pays a better dividend. On top of this ADT pays more dividend than 96.10% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, ADT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
5.2 History
The dividend of ADT decreases each year by -23.00%.
ADT has paid a dividend for at least 10 years, which is a reliable track record.
ADT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-23%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
29.94% of the earnings are spent on dividend by ADT. This is a low number and sustainable payout ratio.
DP29.94%
EPS Next 2Y15.12%
EPS Next 3Y14.05%
8.13
-0.01 (-0.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners89.43%
Inst Owner Change-1.23%
Ins Owners1.34%
Ins Owner Change-4.14%
Market Cap6.66B
Revenue(TTM)5.11B
Net Income(TTM)640.56M
Analysts75.56
Price Target9.77 (20.17%)
Short Float %3.92%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
Yearly Dividend0.2
Dividend Growth(5Y)-23%
DP29.94%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.14%
Min EPS beat(2)6.41%
Max EPS beat(2)13.86%
EPS beat(4)4
Avg EPS beat(4)8.73%
Min EPS beat(4)5.33%
Max EPS beat(4)13.86%
EPS beat(8)7
Avg EPS beat(8)76.37%
EPS beat(12)10
Avg EPS beat(12)91.66%
EPS beat(16)11
Avg EPS beat(16)51.99%
Revenue beat(2)0
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.76%
Max Revenue beat(2)-0.16%
Revenue beat(4)2
Avg Revenue beat(4)0.27%
Min Revenue beat(4)-0.76%
Max Revenue beat(4)1.12%
Revenue beat(8)4
Avg Revenue beat(8)-1.87%
Revenue beat(12)5
Avg Revenue beat(12)-3.74%
Revenue beat(16)6
Avg Revenue beat(16)-6.11%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.06%
EPS NY rev (1m)1.73%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.34 | ||
| Fwd PE | 8.4 | ||
| P/S | 1.3 | ||
| P/FCF | 8.47 | ||
| P/OCF | 3.38 | ||
| P/B | 1.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.42 |
EPS(TTM)0.87
EY10.7%
EPS(NY)0.97
Fwd EY11.9%
FCF(TTM)0.96
FCFY11.8%
OCF(TTM)2.4
OCFY29.57%
SpS6.24
BVpS4.46
TBVpS-7.43
PEG (NY)0.42
PEG (5Y)N/A
Graham Number9.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 17.51% | ||
| ROCE | 8.9% | ||
| ROIC | 6.65% | ||
| ROICexc | 6.68% | ||
| ROICexgc | 20.58% | ||
| OM | 25.25% | ||
| PM (TTM) | 12.53% | ||
| GM | 80.92% | ||
| FCFM | 15.39% |
ROA(3y)2.26%
ROA(5y)0.17%
ROE(3y)9.77%
ROE(5y)-0.4%
ROIC(3y)5.35%
ROIC(5y)3.49%
ROICexc(3y)5.39%
ROICexc(5y)3.51%
ROICexgc(3y)17.14%
ROICexgc(5y)11.43%
ROCE(3y)7.17%
ROCE(5y)4.67%
ROICexgc growth 3Y161.56%
ROICexgc growth 5Y19.28%
ROICexc growth 3Y188.1%
ROICexc growth 5Y29.78%
OM growth 3Y192.77%
OM growth 5Y30.57%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.32%
GM growth 5Y2.56%
F-Score6
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 9.92 | ||
| Debt/EBITDA | 2.74 | ||
| Cap/Depr | 86.6% | ||
| Cap/Sales | 23.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.13% | ||
| Profit Quality | 122.81% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.61 |
F-Score6
WACC7.13%
ROIC/WACC0.93
Cap/Depr(3y)95.22%
Cap/Depr(5y)83.19%
Cap/Sales(3y)26.65%
Cap/Sales(5y)25.38%
Profit Quality(3y)148.75%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.54%
EPS 3Y93.99%
EPS 5Y-7.53%
EPS Q2Q%15%
EPS Next Y22.28%
EPS Next 2Y15.12%
EPS Next 3Y14.05%
EPS Next 5YN/A
Revenue 1Y (TTM)5.2%
Revenue growth 3Y-2.64%
Revenue growth 5Y-0.9%
Sales Q2Q%4.34%
Revenue Next Year5.37%
Revenue Next 2Y4.53%
Revenue Next 3Y4.3%
Revenue Next 5YN/A
EBIT growth 1Y7.55%
EBIT growth 3Y185.05%
EBIT growth 5Y29.39%
EBIT Next Year117.44%
EBIT Next 3Y33.27%
EBIT Next 5Y25.29%
FCF growth 1Y60.08%
FCF growth 3Y76.31%
FCF growth 5Y4.03%
OCF growth 1Y8.72%
OCF growth 3Y4.54%
OCF growth 5Y0.13%
ADT INC / ADT FAQ
Can you provide the ChartMill fundamental rating for ADT INC?
ChartMill assigns a fundamental rating of 5 / 10 to ADT.
What is the valuation status of ADT INC (ADT) stock?
ChartMill assigns a valuation rating of 9 / 10 to ADT INC (ADT). This can be considered as Undervalued.
Can you provide the profitability details for ADT INC?
ADT INC (ADT) has a profitability rating of 7 / 10.
Can you provide the financial health for ADT stock?
The financial health rating of ADT INC (ADT) is 2 / 10.
What is the earnings growth outlook for ADT INC?
The Earnings per Share (EPS) of ADT INC (ADT) is expected to grow by 22.28% in the next year.