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ADTRAN HOLDINGS INC (ADTN) Stock Fundamental Analysis

NASDAQ:ADTN - Nasdaq - US00486H1059 - Common Stock - Currency: USD

10.84  -0.69 (-5.98%)

After market: 10.82 -0.02 (-0.18%)

Fundamental Rating

2

Taking everything into account, ADTN scores 2 out of 10 in our fundamental rating. ADTN was compared to 51 industry peers in the Communications Equipment industry. ADTN has a bad profitability rating. Also its financial health evaluation is rather negative. ADTN does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

ADTN had negative earnings in the past year.
In the past year ADTN has reported a negative cash flow from operations.
In the past 5 years ADTN reported 4 times negative net income.
In the past 5 years ADTN reported 4 times negative operating cash flow.
ADTN Yearly Net Income VS EBIT VS OCF VS FCFADTN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -100M -200M

1.2 Ratios

The Return On Assets of ADTN (-14.91%) is worse than 74.00% of its industry peers.
ADTN's Return On Equity of -42.18% is on the low side compared to the rest of the industry. ADTN is outperformed by 70.00% of its industry peers.
Industry RankSector Rank
ROA -14.91%
ROE -42.18%
ROIC N/A
ROA(3y)-5.85%
ROA(5y)-5.36%
ROE(3y)-15.9%
ROE(5y)-12.2%
ROIC(3y)N/A
ROIC(5y)N/A
ADTN Yearly ROA, ROE, ROICADTN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -10 -20 -30 -40

1.3 Margins

Looking at the Gross Margin, with a value of 31.16%, ADTN is doing worse than 66.00% of the companies in the same industry.
In the last couple of years the Gross Margin of ADTN has declined.
ADTN does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 31.16%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-10.26%
GM growth 5Y-4.16%
ADTN Yearly Profit, Operating, Gross MarginsADTN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40

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3

2. Health

2.1 Basic Checks

ADTN does not have a ROIC to compare to the WACC, probably because it is not profitable.
ADTN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ADTN has more shares outstanding
The debt/assets ratio for ADTN is higher compared to a year ago.
ADTN Yearly Shares OutstandingADTN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
ADTN Yearly Total Debt VS Total AssetsADTN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2.2 Solvency

Based on the Altman-Z score of 0.99, we must say that ADTN is in the distress zone and has some risk of bankruptcy.
ADTN's Altman-Z score of 0.99 is in line compared to the rest of the industry. ADTN outperforms 52.00% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that ADTN is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.33, ADTN is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF N/A
Altman-Z 0.99
ROIC/WACCN/A
WACC9.46%
ADTN Yearly LT Debt VS Equity VS FCFADTN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 2.65 indicates that ADTN has no problem at all paying its short term obligations.
ADTN has a Current ratio of 2.65. This is in the better half of the industry: ADTN outperforms 68.00% of its industry peers.
ADTN has a Quick Ratio of 1.34. This is a normal value and indicates that ADTN is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.34, ADTN perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.65
Quick Ratio 1.34
ADTN Yearly Current Assets VS Current LiabilitesADTN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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3

3. Growth

3.1 Past

ADTN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -1650.00%.
ADTN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.05%.
ADTN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.77% yearly.
EPS 1Y (TTM)-1650%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%64.29%
Revenue 1Y (TTM)12.05%
Revenue growth 3Y31.4%
Revenue growth 5Y16.77%
Sales Q2Q%-16.39%

3.2 Future

Based on estimates for the next years, ADTN will show a very strong growth in Earnings Per Share. The EPS will grow by 32.35% on average per year.
Based on estimates for the next years, ADTN will show a decrease in Revenue. The Revenue will decrease by -1.67% on average per year.
EPS Next Y72.79%
EPS Next 2Y46.59%
EPS Next 3Y32.35%
EPS Next 5YN/A
Revenue Next Year-20.46%
Revenue Next 2Y-6.28%
Revenue Next 3Y-1.67%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
ADTN Yearly Revenue VS EstimatesADTN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
ADTN Yearly EPS VS EstimatesADTN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 -0.5 -1

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ADTN. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 56.49, which means the current valuation is very expensive for ADTN.
ADTN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ADTN is more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, ADTN is valued quite expensively.
Industry RankSector Rank
PE N/A
Fwd PE 56.49
ADTN Price Earnings VS Forward Price EarningsADTN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
ADTN Per share dataADTN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

ADTN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ADTN's earnings are expected to grow with 32.35% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y46.59%
EPS Next 3Y32.35%

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6

5. Dividend

5.1 Amount

ADTN has a Yearly Dividend Yield of 6.65%, which is a nice return.
Compared to an average industry Dividend Yield of 11.04, ADTN pays a better dividend. On top of this ADTN pays more dividend than 96.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, ADTN pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.65%

5.2 History

ADTN has been paying a dividend for at least 10 years, so it has a reliable track record.
ADTN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years20
ADTN Yearly Dividends per shareADTN Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 0.1 0.2 0.3

5.3 Sustainability

ADTN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-8.48%
EPS Next 2Y46.59%
EPS Next 3Y32.35%
ADTN Yearly Income VS Free CF VS DividendADTN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -100M -200M

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ADTRAN HOLDINGS INC

NASDAQ:ADTN (2/21/2025, 8:00:04 PM)

After market: 10.82 -0.02 (-0.18%)

10.84

-0.69 (-5.98%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)02-26 2025-02-26/amc
Inst Owners89.08%
Inst Owner Change-91.98%
Ins Owners1.31%
Ins Owner Change9.51%
Market Cap859.07M
Analysts78.57
Price Target11.73 (8.21%)
Short Float %1.23%
Short Ratio1.02
Dividend
Industry RankSector Rank
Dividend Yield 6.65%
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP-8.48%
Div Incr Years0
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-538.69%
Min EPS beat(2)-1024.87%
Max EPS beat(2)-52.51%
EPS beat(4)1
Avg EPS beat(4)-304.36%
Min EPS beat(4)-1024.87%
Max EPS beat(4)100%
EPS beat(8)3
Avg EPS beat(8)-113.52%
EPS beat(12)7
Avg EPS beat(12)2.55%
EPS beat(16)11
Avg EPS beat(16)47.15%
Revenue beat(2)0
Avg Revenue beat(2)-5.44%
Min Revenue beat(2)-7.35%
Max Revenue beat(2)-3.52%
Revenue beat(4)0
Avg Revenue beat(4)-4.91%
Min Revenue beat(4)-7.35%
Max Revenue beat(4)-2.56%
Revenue beat(8)1
Avg Revenue beat(8)-3.25%
Revenue beat(12)2
Avg Revenue beat(12)-1.91%
Revenue beat(16)2
Avg Revenue beat(16)-1.72%
PT rev (1m)17.35%
PT rev (3m)64.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.24%
EPS NY rev (3m)-7.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 56.49
P/S 0.75
P/FCF N/A
P/OCF N/A
P/B 1.45
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-1.4
EYN/A
EPS(NY)0.19
Fwd EY1.77%
FCF(TTM)-1.21
FCFYN/A
OCF(TTM)-0.67
OCFYN/A
SpS14.5
BVpS7.49
TBVpS-1.11
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -14.91%
ROE -42.18%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 31.16%
FCFM N/A
ROA(3y)-5.85%
ROA(5y)-5.36%
ROE(3y)-15.9%
ROE(5y)-12.2%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-10.26%
GM growth 5Y-4.16%
F-Score3
Asset Turnover0.68
Health
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 38.18%
Cap/Sales 3.75%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.65
Quick Ratio 1.34
Altman-Z 0.99
F-Score3
WACC9.46%
ROIC/WACCN/A
Cap/Depr(3y)32.96%
Cap/Depr(5y)38.16%
Cap/Sales(3y)2.14%
Cap/Sales(5y)1.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1650%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%64.29%
EPS Next Y72.79%
EPS Next 2Y46.59%
EPS Next 3Y32.35%
EPS Next 5YN/A
Revenue 1Y (TTM)12.05%
Revenue growth 3Y31.4%
Revenue growth 5Y16.77%
Sales Q2Q%-16.39%
Revenue Next Year-20.46%
Revenue Next 2Y-6.28%
Revenue Next 3Y-1.67%
Revenue Next 5YN/A
EBIT growth 1Y-173.04%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year748.34%
EBIT Next 3Y129.09%
EBIT Next 5YN/A
FCF growth 1Y-56.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-19.76%
OCF growth 3YN/A
OCF growth 5YN/A