ADT INC (ADT) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:ADT • US00090Q1031

7.835 USD
+0.08 (+1.1%)
Last: Feb 5, 2026, 03:29 PM
Fundamental Rating

5

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 has a great profitability rating, there are quite some concerns on its financial health. ADT may be a bit undervalued, certainly considering the very reasonable score on growth


Dividend Valuation Growth Profitability Health

7

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.
  • ADT had a positive operating cash flow in each of the past 5 years.
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 60.53% of its industry peers.
  • ADT has a better Return On Equity (17.51%) than 78.95% of its industry peers.
  • ADT has a better Return On Invested Capital (6.65%) than 67.11% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ADT is below the industry average of 10.27%.
  • The 3 year average ROIC (5.35%) for ADT is below the current ROIC(6.65%), indicating increased profibility in the last year.
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

  • Looking at the Profit Margin, with a value of 12.53%, ADT is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
  • ADT's Operating Margin of 25.25% is amongst the best of the industry. ADT outperforms 94.74% of its industry peers.
  • In the last couple of years the Operating Margin of ADT has grown nicely.
  • ADT's Gross Margin of 80.92% is amongst the best of the industry. ADT outperforms 94.74% of its industry peers.
  • ADT's Gross Margin has improved in the last couple of years.
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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2

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
  • The debt/assets ratio for ADT has been reduced compared to a year ago.
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's Altman-Z score of 0.60 is in line compared to the rest of the industry. ADT outperforms 42.11% 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 64.47% of the companies in the same industry.
  • A Debt/Equity ratio of 1.99 is on the high side and indicates that ADT has dependencies on debt 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 RankSector Rank
Debt/Equity 1.99
Debt/FCF 9.92
Altman-Z 0.6
ROIC/WACC0.95
WACC7.03%
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

  • A Current Ratio of 0.67 indicates that ADT may have some problems paying its short term obligations.
  • ADT has a worse Current ratio (0.67) than 76.32% of its industry peers.
  • ADT has a Quick 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.
  • With a Quick ratio value of 0.54, ADT is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
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.
  • 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.
  • ADT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.20%.
  • 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

  • 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.
  • 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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Find the best growth stocksShow best growing peers

9

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 9.01, which indicates a very decent valuation of ADT.
  • 84.21% 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 28.25. ADT is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 8.20, the valuation of ADT can be described as very reasonable.
  • ADT's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADT is cheaper than 90.79% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of ADT to the average of the S&P500 Index (27.50), we can say ADT is valued rather cheaply.
Industry RankSector Rank
PE 9.01
Fwd PE 8.2
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

  • Based on the Enterprise Value to EBITDA ratio, ADT is valued cheaper than 85.53% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ADT is valued cheaply inside the industry as 94.74% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 8.16
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.
  • 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)0.41
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

5

5. Dividend

5.1 Amount

  • ADT has a Yearly Dividend Yield of 2.72%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.37, ADT pays a better dividend. On top of this ADT pays more dividend than 94.74% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, ADT pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.72%

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
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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Find the best dividend stocksShow peers with best dividend

ADT INC

NYSE:ADT (2/5/2026, 3:29:09 PM)

7.835

+0.08 (+1.1%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-04
Earnings (Next)02-25
Inst Owners89.52%
Inst Owner Change-3.77%
Ins Owners1.32%
Ins Owner Change0.08%
Market Cap6.42B
Revenue(TTM)5.11B
Net Income(TTM)640.56M
Analysts75.56
Price Target9.67 (23.42%)
Short Float %3.72%
Short Ratio4.1
Dividend
Industry RankSector Rank
Dividend Yield 2.72%
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)-0.82%
EPS NY rev (1m)0%
EPS NY rev (3m)1.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.1%
Valuation
Industry RankSector Rank
PE 9.01
Fwd PE 8.2
P/S 1.26
P/FCF 8.16
P/OCF 3.26
P/B 1.76
P/tB N/A
EV/EBITDA 5.3
EPS(TTM)0.87
EY11.1%
EPS(NY)0.96
Fwd EY12.19%
FCF(TTM)0.96
FCFY12.25%
OCF(TTM)2.4
OCFY30.68%
SpS6.24
BVpS4.46
TBVpS-7.43
PEG (NY)0.41
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
WACC7.03%
ROIC/WACC0.95
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%.