ADT INC (ADT) Fundamental Analysis & Valuation

NYSE:ADT • US00090Q1031

Current stock price

6.46 USD
-0.16 (-2.42%)
At close:
6.46 USD
0 (0%)
After Hours:

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

  • In the past year ADT was profitable.
  • ADT had a positive operating cash flow in the past year.
  • Of the past 5 years ADT 4 years were profitable.
  • 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 2025 0 500M -500M 1B 1.5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 3.77%, ADT is in line with its industry, outperforming 58.90% of the companies in the same industry.
  • ADT has a Return On Equity of 15.77%. This is in the better half of the industry: ADT outperforms 73.97% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 6.54%, ADT is in the better half of the industry, outperforming 67.12% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for ADT is below the industry average of 10.75%.
  • The last Return On Invested Capital (6.54%) for ADT is above the 3 year average (6.31%), which is a sign of increasing profitability.
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 76.71% of its industry peers.
  • ADT's Profit Margin has improved in the last couple of years.
  • ADT has a better Operating Margin (25.52%) than 95.89% of its industry peers.
  • In the last couple of years the Operating Margin of ADT has grown nicely.
  • With an excellent Gross Margin value of 80.83%, ADT belongs to the best of the industry, outperforming 94.52% 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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADT is destroying value.
  • ADT has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for ADT has been reduced compared to 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.
  • With a Altman-Z score value of 0.61, ADT perfoms like the industry average, outperforming 45.21% of the companies in the same industry.
  • The Debt to FCF ratio of ADT is 10.74, which is on the high side as it means it would take ADT, 10.74 years of fcf income to pay off all of its debts.
  • ADT has a Debt to FCF ratio of 10.74. This is in the better half of the industry: ADT outperforms 63.01% 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.
  • ADT's Debt to Equity ratio of 1.95 is on the low side compared to the rest of the industry. ADT is outperformed by 68.49% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.95
Debt/FCF 10.74
Altman-Z 0.61
ROIC/WACC0.82
WACC8%
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.
  • ADT has a Current ratio of 0.93. This is in the lower half of the industry: ADT underperforms 61.64% 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 68.49% 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

  • ADT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.29%, which is quite impressive.
  • The Earnings Per Share has been decreasing by -2.66% on average over the past years.
  • ADT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.70%.
  • Measured over the past years, ADT shows a decrease in Revenue. The Revenue has been decreasing by -0.71% on average per year.
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

  • Based on estimates for the next years, ADT will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.66% on average per year.
  • Based on estimates for the next years, ADT will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
EPS Next Y6.14%
EPS Next 2Y8.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.04%
Revenue Next 2Y1.39%
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.
  • 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 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 0.2 0.4 0.6 0.8 1

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8

4. ADT Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 7.18, the valuation of ADT can be described as very cheap.
  • Compared to the rest of the industry, the Price/Earnings ratio of ADT indicates a rather cheap valuation: ADT is cheaper than 90.41% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 24.88. ADT is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 6.76, the valuation of ADT can be described as very cheap.
  • 94.52% of the companies in the same industry are more expensive than ADT, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, ADT is valued rather cheaply.
Industry RankSector Rank
PE 7.18
Fwd PE 6.76
ADT Price Earnings VS Forward Price EarningsADT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • 90.41% of the companies in the same industry are more expensive than ADT, based on the Enterprise Value to EBITDA ratio.
  • 90.41% of the companies in the same industry are more expensive than ADT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.4
EV/EBITDA 4.87
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • ADT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.17
PEG (5Y)N/A
EPS Next 2Y8.66%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. ADT Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.32%, ADT has a reasonable but not impressive dividend return.
  • The stock price of ADT dropped by -20.64% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • Compared to an average industry Dividend Yield of 0.45, ADT pays a better dividend. On top of this ADT pays more dividend than 95.89% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, ADT pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.32%

5.2 History

  • The dividend of ADT is nicely growing with an annual growth rate of 9.54%!
  • 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)9.54%
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 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 2Y8.66%
EPS Next 3YN/A
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 (3/27/2026, 8:04:00 PM)

After market: 6.46 0 (0%)

6.46

-0.16 (-2.42%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)03-02
Earnings (Next)04-22
Inst Owners89.61%
Inst Owner Change-0.35%
Ins Owners1.32%
Ins Owner Change-0.65%
Market Cap5.30B
Revenue(TTM)5.13B
Net Income(TTM)595.95M
Analysts75.56
Price Target8.26 (27.86%)
Short Float %5.01%
Short Ratio2.91
Dividend
Industry RankSector Rank
Dividend Yield 3.32%
Yearly Dividend0.22
Dividend Growth(5Y)9.54%
DP31.34%
Div Incr Years1
Div Non Decr Years4
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)0%
PT rev (3m)-1.04%
EPS NQ rev (1m)-3.64%
EPS NQ rev (3m)-4.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.25%
Revenue NQ rev (1m)-3.33%
Revenue NQ rev (3m)-3.33%
Revenue NY rev (1m)-3.51%
Revenue NY rev (3m)-3.62%
Valuation
Industry RankSector Rank
PE 7.18
Fwd PE 6.76
P/S 1.03
P/FCF 7.4
P/OCF 2.81
P/B 1.4
P/tB N/A
EV/EBITDA 4.87
EPS(TTM)0.9
EY13.93%
EPS(NY)0.96
Fwd EY14.79%
FCF(TTM)0.87
FCFY13.51%
OCF(TTM)2.3
OCFY35.56%
SpS6.25
BVpS4.61
TBVpS-7.22
PEG (NY)1.17
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
WACC8%
ROIC/WACC0.82
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 Y6.14%
EPS Next 2Y8.66%
EPS Next 3YN/A
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 Year-0.04%
Revenue Next 2Y1.39%
Revenue Next 3Y2.25%
Revenue Next 5YN/A
EBIT growth 1Y6.2%
EBIT growth 3Y21.94%
EBIT growth 5Y42.91%
EBIT Next Year101.41%
EBIT Next 3Y28.28%
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.


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 7 / 10 and the dividend payout ratio is 31.34%.