ADT INC (ADT) Stock Fundamental Analysis

NYSE:ADT • US00090Q1031

7.635 USD
-0.11 (-1.36%)
Last: Feb 17, 2026, 11:25 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to ADT. ADT was compared to 75 industry peers in the Diversified Consumer Services industry. ADT scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ADT.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • ADT had positive earnings in the past year.
  • ADT had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: ADT reported negative net income in multiple 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 0 500M -500M 1B 1.5B

1.2 Ratios

  • ADT's Return On Assets of 4.01% is fine compared to the rest of the industry. ADT outperforms 61.33% of its industry peers.
  • With an excellent Return On Equity value of 17.51%, ADT belongs to the best of the industry, outperforming 81.33% of the companies in the same industry.
  • ADT has a Return On Invested Capital of 6.65%. This is in the better half of the industry: ADT outperforms 66.67% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ADT is significantly below the industry average of 10.88%.
  • 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 RankSector 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%
ADT Yearly ROA, ROE, ROICADT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20

1.3 Margins

  • ADT's Profit Margin of 12.53% is fine compared to the rest of the industry. ADT outperforms 76.00% of its industry peers.
  • Looking at the Operating Margin, with a value of 25.25%, ADT belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
  • ADT's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 80.92%, ADT belongs to the top of the industry, outperforming 94.67% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ADT has grown nicely.
Industry RankSector 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%
ADT Yearly Profit, Operating, Gross MarginsADT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

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
  • The number of shares outstanding for ADT has been increased compared to 5 years ago.
  • Compared to 1 year ago, ADT has an improved debt to assets ratio.
ADT Yearly Shares OutstandingADT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 5B 10B 15B

2.2 Solvency

  • Based on the Altman-Z score of 0.60, we must say that ADT is in the distress zone and has some risk of bankruptcy.
  • ADT has a Altman-Z score (0.60) which is comparable to the rest of the industry.
  • ADT has a debt to FCF ratio of 9.92. This is a negative value and a sign of low solvency as ADT would need 9.92 years to pay back of all of its debts.
  • ADT's Debt to FCF ratio of 9.92 is fine compared to the rest of the industry. ADT outperforms 65.33% of its industry peers.
  • ADT has a Debt/Equity ratio of 1.99. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of ADT (1.99) is worse than 68.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.99
Debt/FCF 9.92
Altman-Z 0.6
ROIC/WACC0.87
WACC7.62%
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 2B 4B 6B 8B 10B

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's Current ratio of 0.67 is on the low side compared to the rest of the industry. ADT is outperformed by 77.33% of its industry peers.
  • A Quick Ratio of 0.54 indicates that ADT may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.54, ADT is doing worse than 77.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.67
Quick Ratio 0.54
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 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. Growth

3.1 Past

  • ADT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.54%, which is quite good.
  • ADT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.53% yearly.
  • Looking at the last year, ADT shows a small growth in Revenue. The Revenue has grown by 5.20% in the last year.
  • Measured over the past years, ADT shows a decrease in Revenue. The Revenue has been decreasing by -0.90% on average per year.
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

  • The Earnings Per Share is expected to grow by 13.34% on average over the next years. This is quite good.
  • ADT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.24% yearly.
EPS Next Y22%
EPS Next 2Y14.39%
EPS Next 3Y13.34%
EPS Next 5YN/A
Revenue Next Year5.35%
Revenue Next 2Y4.47%
Revenue Next 3Y4.24%
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.
  • 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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9

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 8.78 indicates a reasonable valuation of ADT.
  • 86.67% of the companies in the same industry are more expensive than ADT, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 27.19. ADT is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 7.99, 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 92.00% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of ADT to the average of the S&P500 Index (28.06), we can say ADT is valued rather cheaply.
Industry RankSector Rank
PE 8.78
Fwd PE 7.99
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 88.00% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ADT is valued cheaply inside the industry as 92.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 7.96
EV/EBITDA 5.3
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

  • ADT's 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.
  • A more expensive valuation may be justified as ADT's earnings are expected to grow with 13.34% in the coming years.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y14.39%
EPS Next 3Y13.34%

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

6

5. Dividend

5.1 Amount

  • ADT has a Yearly Dividend Yield of 2.88%.
  • Compared to an average industry Dividend Yield of 0.41, ADT pays a better dividend. On top of this ADT pays more dividend than 94.67% of the companies listed 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 2.88%

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
ADT Yearly Dividends per shareADT Yearly Dividends per shareYearly Dividends per share 2016 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

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 2Y14.39%
EPS Next 3Y13.34%
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 0 500M -500M
ADT Dividend Payout.ADT Dividend Payout, showing the Payout Ratio.ADT Dividend Payout.PayoutRetained Earnings

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ADT INC

NYSE:ADT (2/17/2026, 11:25:09 AM)

7.635

-0.11 (-1.36%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-04
Earnings (Next)03-03
Inst Owners89.52%
Inst Owner Change-2.1%
Ins Owners1.32%
Ins Owner Change0.08%
Market Cap6.26B
Revenue(TTM)5.11B
Net Income(TTM)640.56M
Analysts75.56
Price Target9.67 (26.65%)
Short Float %4.11%
Short Ratio2.92
Dividend
Industry RankSector Rank
Dividend Yield 2.88%
Yearly Dividend0.2
Dividend Growth(5Y)-23%
DP29.94%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
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)-1.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.89%
EPS NY rev (1m)0%
EPS NY rev (3m)1.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
Industry RankSector Rank
PE 8.78
Fwd PE 7.99
P/S 1.22
P/FCF 7.96
P/OCF 3.18
P/B 1.71
P/tB N/A
EV/EBITDA 5.3
EPS(TTM)0.87
EY11.39%
EPS(NY)0.96
Fwd EY12.51%
FCF(TTM)0.96
FCFY12.57%
OCF(TTM)2.4
OCFY31.48%
SpS6.24
BVpS4.46
TBVpS-7.43
PEG (NY)0.4
PEG (5Y)N/A
Graham Number9.35
Profitability
Industry RankSector 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 RankSector 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 0.6
F-Score6
WACC7.62%
ROIC/WACC0.87
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%
EPS Next 2Y14.39%
EPS Next 3Y13.34%
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 Year5.35%
Revenue Next 2Y4.47%
Revenue Next 3Y4.24%
Revenue Next 5YN/A
EBIT growth 1Y7.55%
EBIT growth 3Y185.05%
EBIT growth 5Y29.39%
EBIT Next Year117.2%
EBIT Next 3Y33.03%
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.


Can you provide the valuation status for ADT INC?

ChartMill assigns a valuation rating of 9 / 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 6 / 10 and the dividend payout ratio is 29.94%.