ADTRAN NETWORKING SE(FRA:ADV) stock Fundamental Analysis

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to ADV. ADV was compared to 25 industry peers in the Communications Equipment industry. ADV scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ADV has a expensive valuation and it also scores bad on growth.

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1. Profitability

1.1 Basic Checks

In the past year ADV has reported negative net income.

In the past year ADV had a positive cash flow from operations.

ADV had positive earnings in 4 of the past 5 years.

In the past 5 years ADV always reported a positive cash flow from operatings.

1.2 Ratios

With a Return On Assets value of -2.13%, ADV perfoms like the industry average, outperforming 53.85% of the companies in the same industry.

ADV has a Return On Equity (-3.82%) which is in line with its industry peers.

The Return On Invested Capital of ADV (2.19%) is comparable to the rest of the industry.

ADV had an Average Return On Invested Capital over the past 3 years of 5.72%. This is in line with the industry average of 7.38%.

		Industry Rank	Sector Rank
ROA	-2.13%
ROE	-3.82%
ROIC	2.19%

ROA(3y)3.48%

ROA(5y)3.16%

ROE(3y)6.16%

ROE(5y)5.79%

ROIC(3y)5.72%

ROIC(5y)5%

1.3 Margins

The Operating Margin of ADV (2.71%) is comparable to the rest of the industry.

ADV's Operating Margin has declined in the last couple of years.

Looking at the Gross Margin, with a value of 34.99%, ADV is doing worse than 73.08% of the companies in the same industry.

In the last couple of years the Gross Margin of ADV has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	2.71%
PM (TTM)	N/A
GM	34.99%

OM growth 3Y-19.55%

OM growth 5Y-1.93%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.2%

GM growth 5Y-0.68%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

ADV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.

ADV has about the same amout of shares outstanding than it did 1 year ago.

ADV has more shares outstanding than it did 5 years ago.

The debt/assets ratio for ADV has been reduced compared to a year ago.

2.2 Solvency

ADV has an Altman-Z score of 3.39. This indicates that ADV is financially healthy and has little risk of bankruptcy at the moment.

With an excellent Altman-Z score value of 3.39, ADV belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.

A Debt/Equity ratio of 0.24 indicates that ADV is not too dependend on debt financing.

Looking at the Debt to Equity ratio, with a value of 0.24, ADV is in the better half of the industry, outperforming 69.23% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.24
Debt/FCF	N/A
Altman-Z	3.39

ROIC/WACC0.31

WACC6.96%

2.3 Liquidity

A Current Ratio of 2.34 indicates that ADV has no problem at all paying its short term obligations.

ADV has a better Current ratio (2.34) than 65.38% of its industry peers.

A Quick Ratio of 1.73 indicates that ADV should not have too much problems paying its short term obligations.

With a decent Quick ratio value of 1.73, ADV is doing good in the industry, outperforming 73.08% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.34
Quick Ratio	1.73

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

ADV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -179.69%.

The Revenue for ADV has decreased by -13.82% in the past year. This is quite bad

The Revenue has been growing slightly by 4.10% on average over the past years.

EPS 1Y (TTM)-179.69%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-125.16%

Revenue 1Y (TTM)-13.82%

Revenue growth 3Y2.8%

Revenue growth 5Y4.1%

Sales Q2Q%-36.44%

3.2 Future

ADV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 122.40% yearly.

Based on estimates for the next years, ADV will show a decrease in Revenue. The Revenue will decrease by -5.69% on average per year.

EPS Next Y-650%

EPS Next 2Y112.13%

EPS Next 3Y122.4%

EPS Next 5YN/A

Revenue Next Year-30.65%

Revenue Next 2Y-12.66%

Revenue Next 3Y-5.69%

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ADV. In the last year negative earnings were reported.

Based on the Price/Forward Earnings ratio of 400.00, the valuation of ADV can be described as expensive.

Compared to the rest of the industry, the Price/Forward Earnings ratio of ADV indicates a slightly more expensive valuation: ADV is more expensive than 65.38% of the companies listed in the same industry.

ADV's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.10.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	400

4.2 Price Multiples

ADV's Enterprise Value to EBITDA ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	13.31

4.3 Compensation for Growth

ADV's earnings are expected to grow with 122.40% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y112.13%

EPS Next 3Y122.4%

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5. Dividend

5.1 Amount

ADV has a Yearly Dividend Yield of 2.57%. Purely for dividend investing, there may be better candidates out there.

Compared to an average industry Dividend Yield of 3.51, ADV pays a bit more dividend than its industry peers.

Compared to an average S&P500 Dividend Yield of 2.33, ADV has a dividend comparable with the average S&P500 company.

		Industry Rank	Sector Rank
Dividend Yield	2.57%

5.2 History

Dividend Growth(5Y)N/A

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

DPN/A

EPS Next 2Y112.13%

EPS Next 3Y122.4%

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ADTRAN NETWORKING SE

FRA:ADV (3/7/2025, 7:00:00 PM)

20.2

0 (0%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupTechnology Hardware & Equipment

GICS IndustryCommunications Equipment

Earnings (Last)02-27 2025-02-27/amc

Earnings (Next)05-05 2025-05-05

Inst Owners28.66%

Inst Owner ChangeN/A

Ins OwnersN/A

Ins Owner ChangeN/A

Market Cap1.05B

Analysts42.86

Price Target17.34 (-14.16%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	2.57%

Yearly DividendN/A

Dividend Growth(5Y)N/A

DPN/A

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)N/A

Avg EPS beat(2)N/A

Min EPS beat(2)N/A

Max EPS beat(2)N/A

EPS beat(4)N/A

Avg EPS beat(4)N/A

Min EPS beat(4)N/A

Max EPS beat(4)N/A

EPS beat(8)N/A

Avg EPS beat(8)N/A

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)N/A

Avg Revenue beat(2)N/A

Min Revenue beat(2)N/A

Max Revenue beat(2)N/A

Revenue beat(4)N/A

Avg Revenue beat(4)N/A

Min Revenue beat(4)N/A

Max Revenue beat(4)N/A

Revenue beat(8)N/A

Avg Revenue beat(8)N/A

Revenue beat(12)N/A

Avg Revenue beat(12)N/A

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)0%

PT rev (3m)0%

EPS NQ rev (1m)N/A

EPS NQ rev (3m)N/A

EPS NY rev (1m)0%

EPS NY rev (3m)-275%

Revenue NQ rev (1m)N/A

Revenue NQ rev (3m)N/A

Revenue NY rev (1m)0%

Revenue NY rev (3m)-6.52%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	400
P/S	1.71
P/FCF	N/A
P/OCF	20.18
P/B	2.77
P/tB	5.99
EV/EBITDA	13.31

EPS(TTM)-0.28

EYN/A

EPS(NY)0.05

Fwd EY0.25%

FCF(TTM)-0.29

FCFYN/A

OCF(TTM)1

OCFY4.96%

SpS11.79

BVpS7.3

TBVpS3.37

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-2.13%
ROE	-3.82%
ROCE	3.11%
ROIC	2.19%
ROICexc	2.37%
ROICexgc	4.05%
OM	2.71%
PM (TTM)	N/A
GM	34.99%
FCFM	N/A

ROA(3y)3.48%

ROA(5y)3.16%

ROE(3y)6.16%

ROE(5y)5.79%

ROIC(3y)5.72%

ROIC(5y)5%

ROICexc(3y)7.1%

ROICexc(5y)6.14%

ROICexgc(3y)17.44%

ROICexgc(5y)15.25%

ROCE(3y)8.12%

ROCE(5y)7.1%

ROICexcg growth 3Y-38.42%

ROICexcg growth 5Y-19.29%

ROICexc growth 3Y-29.14%

ROICexc growth 5Y-8.59%

OM growth 3Y-19.55%

OM growth 5Y-1.93%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.2%

GM growth 5Y-0.68%

F-Score4

Asset Turnover0.9

Health

		Industry Rank	Sector Rank
Debt/Equity	0.24
Debt/FCF	N/A
Debt/EBITDA	1.09
Cap/Depr	99.3%
Cap/Sales	10.98%
Interest Coverage	4.68
Cash Conversion	61.69%
Profit Quality	N/A
Current Ratio	2.34
Quick Ratio	1.73
Altman-Z	3.39

F-Score4

WACC6.96%

ROIC/WACC0.31

Cap/Depr(3y)97.03%

Cap/Depr(5y)95.62%

Cap/Sales(3y)10.68%

Cap/Sales(5y)10.65%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-179.69%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-125.16%

EPS Next Y-650%

EPS Next 2Y112.13%

EPS Next 3Y122.4%

EPS Next 5YN/A

Revenue 1Y (TTM)-13.82%

Revenue growth 3Y2.8%

Revenue growth 5Y4.1%

Sales Q2Q%-36.44%

Revenue Next Year-30.65%

Revenue Next 2Y-12.66%

Revenue Next 3Y-5.69%

Revenue Next 5YN/A

EBIT growth 1Y-55.31%

EBIT growth 3Y-17.3%

EBIT growth 5Y2.09%

EBIT Next Year4200%

EBIT Next 3Y319.83%

EBIT Next 5YN/A

FCF growth 1Y-32.64%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-10.07%

OCF growth 3Y-27.12%

OCF growth 5Y-9.03%

ADTRAN NETWORKING SE (ADV.DE) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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