ADT INC (ADT) Fundamental Analysis & Valuation

NYSE:ADT • US00090Q1031

Current stock price

6.85 USD
+0.12 (+1.78%)
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.
  • In the past year ADT had a positive cash flow from operations.
  • 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

  • With a Return On Assets value of 3.77%, ADT perfoms like the industry average, outperforming 56.94% of the companies in the same industry.
  • With a decent Return On Equity value of 15.77%, ADT is doing good in the industry, outperforming 73.61% of the companies in the same industry.
  • ADT has a better Return On Invested Capital (6.54%) than 65.28% 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 15.36%.
  • 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 77.78% 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 94.44% 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 80.83%, ADT belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
  • 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.
  • ADT has less shares outstanding than it did 1 year ago.
  • ADT has less shares outstanding than it did 5 years ago.
  • ADT has a worse debt/assets ratio than last year.
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.
  • The Altman-Z score of ADT (0.61) is comparable to the rest of the industry.
  • 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.
  • ADT has a better Debt to FCF ratio (10.74) than 61.11% 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.
  • The Debt to Equity ratio of ADT (1.95) is worse than 70.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.95
Debt/FCF 10.74
Altman-Z 0.61
ROIC/WACC0.84
WACC7.83%
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.
  • The Current ratio of ADT (0.93) is worse than 62.50% of its industry peers.
  • A Quick Ratio of 0.73 indicates that ADT may have some problems paying its short term obligations.
  • The Quick ratio of ADT (0.73) is worse than 69.44% 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

  • The Earnings Per Share has grown by an impressive 23.29% 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.
  • The Revenue has been growing slightly by 4.70% in the past year.
  • ADT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.71% yearly.
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

  • The Earnings Per Share is expected to grow by 5.86% on average over the next years.
  • 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.
  • 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

  • ADT is valuated cheaply with a Price/Earnings ratio of 7.61.
  • ADT's Price/Earnings ratio is rather cheap when compared to the industry. ADT is cheaper than 84.72% of the companies in the same industry.
  • ADT is valuated cheaply when we compare the Price/Earnings ratio to 26.86, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 7.57, which indicates a rather cheap valuation of ADT.
  • Based on the Price/Forward Earnings ratio, ADT is valued cheaply inside the industry as 94.44% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of ADT to the average of the S&P500 Index (37.39), we can say ADT is valued rather cheaply.
Industry RankSector Rank
PE 7.61
Fwd PE 7.57
ADT Price Earnings VS Forward Price EarningsADT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ADT is valued cheaper than 87.50% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ADT is valued cheaper than 90.28% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.85
EV/EBITDA 4.91
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.
  • The decent profitability rating of ADT may justify a higher PE ratio.
PEG (NY)12.77
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 3.22%.
  • ADT's Dividend Yield is rather good when compared to the industry average which is at 0.44. ADT pays more dividend than 95.83% of the companies 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 3.22%

5.2 History

  • On average, the dividend of ADT grows each year by 9.54%, which is quite nice.
  • 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 (4/13/2026, 3:57:09 PM)

6.85

+0.12 (+1.78%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)03-02
Earnings (Next)05-06
Inst Owners89.63%
Inst Owner Change-0.02%
Ins Owners1.3%
Ins Owner Change-0.66%
Market Cap5.62B
Revenue(TTM)5.13B
Net Income(TTM)595.95M
Analysts74
Price Target8.33 (21.61%)
Short Float %4.57%
Short Ratio2.42
Dividend
Industry RankSector Rank
Dividend Yield 3.22%
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)-2.95%
Revenue NY rev (3m)-2.95%
Valuation
Industry RankSector Rank
PE 7.61
Fwd PE 7.57
P/S 1.1
P/FCF 7.85
P/OCF 2.98
P/B 1.49
P/tB N/A
EV/EBITDA 4.91
EPS(TTM)0.9
EY13.14%
EPS(NY)0.91
Fwd EY13.22%
FCF(TTM)0.87
FCFY12.74%
OCF(TTM)2.3
OCFY33.54%
SpS6.25
BVpS4.61
TBVpS-7.22
PEG (NY)12.77
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
WACC7.83%
ROIC/WACC0.84
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 7.61 and the Price/Book (PB) ratio is 1.49.


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.