ADTRAN NETWORKING SE (ADV.DE) Stock Fundamental Analysis
FRA:ADV - Deutsche Boerse Ag - DE0005103006 - Common Stock - Currency: EUR
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.
1. Profitability
1.1 Basic Checks
ADV had negative earnings in the past year.
In the past year ADV had a positive cash flow from operations.
ADV had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ADV had a positive operating cash flow.
1.2 Ratios
ADV has a Return On Assets of -2.13%. This is comparable to the rest of the industry: ADV outperforms 52.00% of its industry peers.
ADV's Return On Equity of -3.82% is in line compared to the rest of the industry. ADV outperforms 52.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.19%, ADV is in line with its industry, outperforming 52.00% of the companies in the same 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 6.88%.
| 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
With a Operating Margin value of 2.71%, ADV perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
ADV's Operating Margin has declined in the last couple of years.
ADV's Gross Margin of 34.99% is on the low side compared to the rest of the industry. ADV is outperformed by 76.00% of its industry peers.
ADV's Gross Margin has been stable in the last couple of years.
| 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%
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.
Compared to 1 year ago, ADV has about the same amount of shares outstanding.
The number of shares outstanding for ADV has been increased compared to 5 years ago.
ADV has a better debt/assets ratio than last year.
2.2 Solvency
ADV has an Altman-Z score of 3.38. This indicates that ADV is financially healthy and has little risk of bankruptcy at the moment.
ADV has a Altman-Z score of 3.38. This is amongst the best in the industry. ADV outperforms 88.00% of its industry peers.
ADV has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
ADV has a Debt to Equity ratio of 0.24. This is in the better half of the industry: ADV outperforms 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.38 |
ROIC/WACC0.33
WACC6.67%
2.3 Liquidity
ADV has a Current Ratio of 2.34. This indicates that ADV is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.34, ADV is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
ADV has a Quick Ratio of 1.73. This is a normal value and indicates that ADV is financially healthy and should not expect problems in meeting its short term obligations.
ADV's Quick ratio of 1.73 is fine compared to the rest of the industry. ADV outperforms 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.73 |
3. Growth
3.1 Past
The earnings per share for ADV have decreased strongly by -179.70% in the last year.
The Revenue for ADV has decreased by -13.82% in the past year. This is quite bad
Measured over the past years, ADV shows a small growth in Revenue. The Revenue has been growing by 4.10% on average per year.
EPS 1Y (TTM)-179.7%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-125.12%
Revenue 1Y (TTM)-13.82%
Revenue growth 3Y2.8%
Revenue growth 5Y4.1%
Sales Q2Q%-36.44%
3.2 Future
The Earnings Per Share is expected to grow by 122.40% on average over the next years. This is a very strong growth
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.
4. Valuation
4.1 Price/Earnings Ratio
ADV reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 398.02 indicates a quite expensive valuation of ADV.
ADV's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ADV is more expensive than 64.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. ADV is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 398.02 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ADV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.25 |
4.3 Compensation for Growth
A more expensive valuation may be justified as ADV's earnings are expected to grow with 122.40% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y112.13%
EPS Next 3Y122.4%
5. Dividend
5.1 Amount
ADV has a Yearly Dividend Yield of 2.59%.
Compared to an average industry Dividend Yield of 3.61, ADV pays a bit more dividend than its industry peers.
ADV's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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%
ADTRAN NETWORKING SE
FRA:ADV (2/5/2025, 5:29:04 PM)
20.1
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners31.16%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.05B
Analysts42.86
Price Target17.34 (-13.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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)-275%
EPS NY rev (3m)-275%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-6.52%
Revenue NY rev (3m)-6.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 398.02 | ||
| P/S | 1.7 | ||
| P/FCF | N/A | ||
| P/OCF | 20.08 | ||
| P/B | 2.75 | ||
| P/tB | 5.96 | ||
| EV/EBITDA | 13.25 |
EPS(TTM)-0.28
EYN/A
EPS(NY)0.05
Fwd EY0.25%
FCF(TTM)-0.29
FCFYN/A
OCF(TTM)1
OCFY4.98%
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 | 3.38 |
F-Score4
WACC6.67%
ROIC/WACC0.33
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)-179.7%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-125.12%
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%