ADT INC (ADT) Stock Fundamental Analysis
USA - NYSE:ADT - US00090Q1031 - Common Stock
8.745 USD
-0.01 (-0.06%)
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. A decent growth rate in combination with a cheap valuation! Better keep an eye on ADT.
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.
In multiple years ADT reported negative net income over the last 5 years.
In the past 5 years ADT always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.90%, ADT is doing good in the industry, outperforming 66.23% of the companies in the same industry.
ADT has a better Return On Equity (17.01%) than 83.12% of its industry peers.
With a decent Return On Invested Capital value of 7.00%, ADT is doing good in the industry, outperforming 75.32% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ADT is below the industry average of 9.48%.
The 3 year average ROIC (5.35%) for ADT is below the current ROIC(7.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 17.01% | ||
| ROIC | 7% |
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
With a decent Profit Margin value of 12.31%, ADT is doing good in the industry, outperforming 75.32% of the companies in the same industry.
Looking at the Operating Margin, with a value of 25.77%, ADT belongs to the top of the industry, outperforming 94.81% 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 81.28%, ADT belongs to the top of the industry, outperforming 94.81% of the companies in the same industry.
ADT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.77% | ||
| PM (TTM) | 12.31% | ||
| GM | 81.28% |
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 just above the Cost of Capital (WACC), so ADT is still creating some 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.
ADT has a better debt/assets ratio than last year.
2.2 Solvency
ADT has an Altman-Z score of 0.58. This is a bad value and indicates that ADT is not financially healthy and even has some risk of bankruptcy.
ADT has a Altman-Z score (0.58) which is comparable to the rest of the industry.
ADT has a debt to FCF ratio of 10.80. This is a negative value and a sign of low solvency as ADT would need 10.80 years to pay back of all of its debts.
The Debt to FCF ratio of ADT (10.80) is better than 64.94% of its industry peers.
A Debt/Equity ratio of 1.84 is on the high side and indicates that ADT has dependencies on debt financing.
ADT has a worse Debt to Equity ratio (1.84) than 68.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 10.8 | ||
| Altman-Z | 0.58 |
ROIC/WACC1
WACC6.98%
2.3 Liquidity
A Current Ratio of 0.46 indicates that ADT may have some problems paying its short term obligations.
ADT has a Current ratio of 0.46. This is amonst the worse of the industry: ADT underperforms 84.42% of its industry peers.
ADT has a Quick Ratio of 0.46. 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 Quick ratio of 0.37 is on the low side compared to the rest of the industry. ADT is outperformed by 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.27% 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.
Looking at the last year, ADT shows a small growth in Revenue. The Revenue has grown by 4.22% in the last year.
ADT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.90% yearly.
EPS 1Y (TTM)27.27%
EPS 3Y93.99%
EPS 5Y-7.53%
EPS Q2Q%35.29%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y-2.64%
Revenue growth 5Y-0.9%
Sales Q2Q%6.8%
3.2 Future
ADT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.13% yearly.
ADT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.66% yearly.
EPS Next Y20.67%
EPS Next 2Y15.82%
EPS Next 3Y15.13%
EPS Next 5YN/A
Revenue Next Year5.49%
Revenue Next 2Y4.89%
Revenue Next 3Y4.66%
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 10.41.
Compared to the rest of the industry, the Price/Earnings ratio of ADT indicates a rather cheap valuation: ADT is cheaper than 88.31% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.57, ADT is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.93, the valuation of ADT can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ADT is valued cheaply inside the industry as 93.51% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ADT to the average of the S&P500 Index (23.09), we can say ADT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.41 | ||
| Fwd PE | 8.93 |
4.2 Price Multiples
90.91% of the companies in the same industry are more expensive than ADT, based on the Enterprise Value to EBITDA ratio.
92.21% 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 | 10.04 | ||
| EV/EBITDA | 5.66 |
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.
ADT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ADT's earnings are expected to grow with 15.13% in the coming years.
PEG (NY)0.5
PEG (5Y)N/A
EPS Next 2Y15.82%
EPS Next 3Y15.13%
5. Dividend
5.1 Amount
ADT has a Yearly Dividend Yield of 2.58%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.02, ADT pays a better dividend. On top of this ADT pays more dividend than 96.10% of the companies listed in the same industry.
ADT's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
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 31.50% of its income as dividend. This is a sustainable payout ratio.
DP31.5%
EPS Next 2Y15.82%
EPS Next 3Y15.13%
NYSE:ADT (10/23/2025, 3:05:06 PM)
8.745
-0.01 (-0.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners77.69%
Inst Owner Change0.12%
Ins Owners1.32%
Ins Owner Change-1.26%
Market Cap7.27B
Revenue(TTM)5.06B
Net Income(TTM)622.53M
Analysts75.56
Price Target9.77 (11.72%)
Short Float %3.57%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
Yearly Dividend0.2
Dividend Growth(5Y)-23%
DP31.5%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.59%
Min EPS beat(2)9.32%
Max EPS beat(2)13.86%
EPS beat(4)4
Avg EPS beat(4)11.08%
Min EPS beat(4)5.33%
Max EPS beat(4)15.8%
EPS beat(8)7
Avg EPS beat(8)115.18%
EPS beat(12)10
Avg EPS beat(12)93.1%
EPS beat(16)10
Avg EPS beat(16)40.77%
Revenue beat(2)1
Avg Revenue beat(2)0.36%
Min Revenue beat(2)-0.16%
Max Revenue beat(2)0.88%
Revenue beat(4)3
Avg Revenue beat(4)0.62%
Min Revenue beat(4)-0.16%
Max Revenue beat(4)1.12%
Revenue beat(8)4
Avg Revenue beat(8)-4.61%
Revenue beat(12)5
Avg Revenue beat(12)-5.34%
Revenue beat(16)7
Avg Revenue beat(16)-6.01%
PT rev (1m)0%
PT rev (3m)3.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)-1.28%
EPS NY rev (3m)3.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.41 | ||
| Fwd PE | 8.93 | ||
| P/S | 1.44 | ||
| P/FCF | 10.04 | ||
| P/OCF | 3.66 | ||
| P/B | 1.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.66 |
EPS(TTM)0.84
EY9.61%
EPS(NY)0.98
Fwd EY11.2%
FCF(TTM)0.87
FCFY9.96%
OCF(TTM)2.39
OCFY27.35%
SpS6.09
BVpS4.4
TBVpS-7.36
PEG (NY)0.5
PEG (5Y)N/A
Graham Number9.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 17.01% | ||
| ROCE | 9.36% | ||
| ROIC | 7% | ||
| ROICexc | 7.02% | ||
| ROICexgc | 23.78% | ||
| OM | 25.77% | ||
| PM (TTM) | 12.31% | ||
| GM | 81.28% | ||
| FCFM | 14.31% |
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 | 1.84 | ||
| Debt/FCF | 10.8 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 93.37% | ||
| Cap/Sales | 25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.81% | ||
| Profit Quality | 116.28% | ||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 0.58 |
F-Score6
WACC6.98%
ROIC/WACC1
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)27.27%
EPS 3Y93.99%
EPS 5Y-7.53%
EPS Q2Q%35.29%
EPS Next Y20.67%
EPS Next 2Y15.82%
EPS Next 3Y15.13%
EPS Next 5YN/A
Revenue 1Y (TTM)4.22%
Revenue growth 3Y-2.64%
Revenue growth 5Y-0.9%
Sales Q2Q%6.8%
Revenue Next Year5.49%
Revenue Next 2Y4.89%
Revenue Next 3Y4.66%
Revenue Next 5YN/A
EBIT growth 1Y13.89%
EBIT growth 3Y185.05%
EBIT growth 5Y29.39%
EBIT Next Year118%
EBIT Next 3Y34.02%
EBIT Next 5Y25.29%
FCF growth 1Y51.53%
FCF growth 3Y76.31%
FCF growth 5Y4.03%
OCF growth 1Y6.63%
OCF growth 3Y4.54%
OCF growth 5Y0.13%