ADT INC (ADT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADT - US00090Q1031 - Common Stock
8.095 USD
+0.04 (+0.56%)
ADT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year ADT was profitable.
In the past year ADT had a positive cash flow from operations.
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.
1.2 Ratios
The Return On Assets of ADT (4.01%) is better than 64.47% of its industry peers.
ADT has a better Return On Equity (17.51%) than 81.58% of its industry peers.
ADT's Return On Invested Capital of 6.65% is fine compared to the rest of the industry. ADT outperforms 69.74% of its industry peers.
ADT had an Average Return On Invested Capital over the past 3 years of 5.35%. This is below the industry average of 8.97%.
The 3 year average ROIC (5.35%) for ADT is below the current ROIC(6.65%), indicating increased profibility in the last year.
| 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 77.63% of its industry peers.
With an excellent Operating Margin value of 25.25%, ADT belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
ADT's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 80.92%, ADT belongs to the best of the industry, outperforming 93.42% of the companies in the same industry.
ADT's Gross Margin has improved in the last couple of years.
| 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 worse Altman-Z score (0.61) than 60.53% of its industry peers.
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.
The Debt to FCF ratio of ADT (9.92) is better than 63.16% 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.
With a Debt to Equity ratio value of 1.99, ADT is not doing good in the industry: 71.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | 9.92 | ||
| Altman-Z | 0.61 |
ROIC/WACC0.93
WACC7.17%
2.3 Liquidity
A Current Ratio of 0.67 indicates that ADT may have some problems paying its short term obligations.
ADT has a Current ratio of 0.67. This is in the lower half of the industry: ADT underperforms 78.95% of its industry peers.
A Quick Ratio of 0.54 indicates that ADT may have some problems paying its short term obligations.
ADT's Quick ratio of 0.54 is on the low side compared to the rest of the industry. ADT is outperformed by 81.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.54 |
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.
Measured over the past years, ADT shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.53% on average per year.
Looking at the last year, ADT shows a small growth in Revenue. The Revenue has grown by 5.20% in the last year.
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 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
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.30, the valuation of ADT can be described as very reasonable.
ADT's Price/Earnings ratio is rather cheap when compared to the industry. ADT is cheaper than 86.84% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. ADT is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.37, 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.
ADT is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 8.37 |
4.2 Price Multiples
ADT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ADT is cheaper than 88.16% of the companies in the same industry.
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 | 8.44 | ||
| EV/EBITDA | 5.41 |
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 2.71%.
Compared to an average industry Dividend Yield of 2.12, 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 comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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
ADT pays out 29.94% of its income as dividend. This is a sustainable payout ratio.
DP29.94%
EPS Next 2Y15.12%
EPS Next 3Y14.05%
NYSE:ADT (12/11/2025, 11:21:56 AM)
8.095
+0.04 (+0.56%)
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 Cap6.64B
Revenue(TTM)5.11B
Net Income(TTM)640.56M
Analysts75.56
Price Target9.77 (20.69%)
Short Float %4.2%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 8.37 | ||
| P/S | 1.3 | ||
| P/FCF | 8.44 | ||
| P/OCF | 3.37 | ||
| P/B | 1.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.41 |
EPS(TTM)0.87
EY10.75%
EPS(NY)0.97
Fwd EY11.95%
FCF(TTM)0.96
FCFY11.85%
OCF(TTM)2.4
OCFY29.7%
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
WACC7.17%
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.