ADT INC (ADT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADT - US00090Q1031 - Common Stock
8.25 USD
+0.11 (+1.35%)
8.25 USD
0 (0%)
Taking everything into account, ADT scores 5 out of 10 in our fundamental rating. ADT was compared to 76 industry peers in the Diversified Consumer Services industry. While ADT belongs to the best of the industry regarding profitability, 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
- 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.
- Each year in the past 5 years ADT had a positive operating cash flow.
1.2 Ratios
- ADT's Return On Assets of 4.01% is fine compared to the rest of the industry. ADT outperforms 61.84% of its industry peers.
- The Return On Equity of ADT (17.51%) is better than 80.26% of its industry peers.
- ADT has a Return On Invested Capital of 6.65%. This is in the better half of the industry: ADT outperforms 67.11% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ADT is below the industry average of 10.30%.
- 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 Profit Margin of 12.53%. This is in the better half of the industry: ADT outperforms 75.00% of its industry peers.
- ADT has a Operating Margin of 25.25%. This is amongst the best in the industry. ADT outperforms 94.74% of its industry peers.
- ADT's Operating Margin has improved in the last couple of years.
- ADT has a better Gross Margin (80.92%) than 94.74% 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.
- The number of shares outstanding for ADT has been increased compared to 5 years ago.
- ADT has a better debt/assets ratio than last year.
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 43.42% 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.
- Looking at the Debt to FCF ratio, with a value of 9.92, ADT is in the better half of the industry, outperforming 63.16% 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 has a Debt to Equity ratio of 1.99. This is in the lower half of the industry: ADT underperforms 69.74% 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 worse Current ratio (0.67) than 76.32% of its industry peers.
- A Quick Ratio of 0.54 indicates that ADT may have some problems paying its short term obligations.
- ADT has a worse Quick ratio (0.54) than 78.95% 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.
- The Earnings Per Share has been decreasing by -7.53% on average over the past years.
- ADT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.20%.
- The Revenue has been decreasing by -0.90% on average over the past years.
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 13.34% on average per year.
- The Revenue is expected to grow by 4.24% on average over the next years.
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.
- 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 9.48.
- 84.21% of the companies in the same industry are more expensive than ADT, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, ADT is valued rather cheaply.
- The Price/Forward Earnings ratio is 8.64, which indicates a very decent valuation of ADT.
- ADT's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADT is cheaper than 92.11% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.04. ADT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 8.64 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ADT is valued cheaply inside the industry as 82.89% of the companies are valued more expensively.
- 94.74% of the companies in the same industry are more expensive than ADT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.6 | ||
| 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.
- ADT has a very decent profitability rating, which may justify a higher PE ratio.
- ADT's earnings are expected to grow with 13.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y14.39%
EPS Next 3Y13.34%
5. Dividend
5.1 Amount
- ADT has a Yearly Dividend Yield of 2.67%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.31, ADT pays a better dividend. On top of this ADT pays more dividend than 96.05% of the companies listed in the same industry.
- ADT's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
5.2 History
- The dividend of ADT decreases each year by -23.00%.
- 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)-23%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
- ADT pays out 29.94% of its income as dividend. This is a sustainable payout ratio.
DP29.94%
EPS Next 2Y14.39%
EPS Next 3Y13.34%
8.25
+0.11 (+1.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-25 2026-02-25/amc
Inst Owners89.52%
Inst Owner Change-0.01%
Ins Owners1.32%
Ins Owner Change0.04%
Market Cap6.76B
Revenue(TTM)5.11B
Net Income(TTM)640.56M
Analysts75.56
Price Target9.67 (17.21%)
Short Float %4.28%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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)-1.04%
PT rev (3m)-1.04%
EPS NQ rev (1m)-0.89%
EPS NQ rev (3m)-1.94%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 8.64 | ||
| P/S | 1.32 | ||
| P/FCF | 8.6 | ||
| P/OCF | 3.43 | ||
| P/B | 1.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.42 |
EPS(TTM)0.87
EY10.55%
EPS(NY)0.96
Fwd EY11.58%
FCF(TTM)0.96
FCFY11.63%
OCF(TTM)2.4
OCFY29.14%
SpS6.24
BVpS4.46
TBVpS-7.43
PEG (NY)0.43
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%
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 5 / 10 and the dividend payout ratio is 29.94%.