ADT INC (ADT) Stock Fundamental Analysis
USA - NYSE:ADT - US00090Q1031 - Common Stock
8.7 USD
-0.04 (-0.46%)
ADT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 77 industry peers in the Diversified Consumer Services industry. ADT has an excellent profitability rating, but there are concerns on its financial health. ADT scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
ADT had positive earnings in the past year.
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.
In the past 5 years ADT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.90%, ADT is in the better half of the industry, outperforming 66.23% of the companies in the same industry.
ADT has a better Return On Equity (17.01%) than 83.12% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.00%, ADT is in the better half of the industry, outperforming 75.32% of the companies in the same industry.
ADT had an Average Return On Invested Capital over the past 3 years of 5.35%. This is below the industry average of 9.48%.
The last Return On Invested Capital (7.00%) for ADT is above the 3 year average (5.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 17.01% | ||
| ROIC | 7% |
ROA(3y)2.26%
ROA(5y)0.17%
ROE(3y)9.77%
ROE(5y)-0.4%
ROIC(3y)5.35%
ROIC(5y)3.49%
1.3 Margins
The Profit Margin of ADT (12.31%) is better than 75.32% of its industry peers.
ADT has a better Operating Margin (25.77%) than 94.81% of its industry peers.
ADT's Operating Margin has improved in the last couple of years.
ADT has a better Gross Margin (81.28%) than 94.81% of its industry peers.
In the last couple of years the Gross Margin of ADT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.77% | ||
| PM (TTM) | 12.31% | ||
| GM | 81.28% |
OM growth 3Y192.77%
OM growth 5Y30.57%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.32%
GM growth 5Y2.56%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ADT is creating some 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.
2.2 Solvency
ADT has an Altman-Z score of 0.58. This is a bad value and indicates that ADT is not financially healthy and even has some risk of bankruptcy.
ADT has a Altman-Z score (0.58) which is comparable to the rest of the industry.
The Debt to FCF ratio of ADT is 10.80, which is on the high side as it means it would take ADT, 10.80 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ADT (10.80) is better than 64.94% of its industry peers.
A Debt/Equity ratio of 1.84 is on the high side and indicates that ADT has dependencies on debt financing.
ADT has a worse Debt to Equity ratio (1.84) than 68.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 10.8 | ||
| Altman-Z | 0.58 |
ROIC/WACC1.02
WACC6.86%
2.3 Liquidity
A Current Ratio of 0.46 indicates that ADT may have some problems paying its short term obligations.
ADT has a worse Current ratio (0.46) than 84.42% of its industry peers.
A Quick Ratio of 0.37 indicates that ADT may have some problems paying its short term obligations.
ADT's Quick ratio of 0.37 is on the low side compared to the rest of the industry. ADT is outperformed by 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.27% over the past year.
The Earnings Per Share has been decreasing by -7.53% on average over the past years.
Looking at the last year, ADT shows a small growth in Revenue. The Revenue has grown by 4.22% in the last year.
ADT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.90% yearly.
EPS 1Y (TTM)27.27%
EPS 3Y93.99%
EPS 5Y-7.53%
EPS Q2Q%35.29%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y-2.64%
Revenue growth 5Y-0.9%
Sales Q2Q%6.8%
3.2 Future
The Earnings Per Share is expected to grow by 15.13% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.66% on average over the next years.
EPS Next Y20.51%
EPS Next 2Y15.87%
EPS Next 3Y15.13%
EPS Next 5YN/A
Revenue Next Year5.45%
Revenue Next 2Y4.89%
Revenue Next 3Y4.66%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.36, the valuation of ADT can be described as reasonable.
Based on the Price/Earnings ratio, ADT is valued cheaply inside the industry as 88.31% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.08. ADT is valued rather cheaply when compared to this.
ADT is valuated reasonably with a Price/Forward Earnings ratio of 8.88.
Based on the Price/Forward Earnings ratio, ADT is valued cheaply inside the industry as 93.51% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ADT to the average of the S&P500 Index (23.09), we can say ADT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 8.88 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADT indicates a rather cheap valuation: ADT is cheaper than 90.91% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ADT is valued cheaply inside the industry as 92.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.99 | ||
| EV/EBITDA | 5.66 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ADT may justify a higher PE ratio.
ADT's earnings are expected to grow with 15.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y15.87%
EPS Next 3Y15.13%
5. Dividend
5.1 Amount
ADT has a Yearly Dividend Yield of 2.53%. Purely for dividend investing, there may be better candidates out there.
ADT's Dividend Yield is rather good when compared to the industry average which is at 1.95. ADT pays more dividend than 96.10% of the companies in the same industry.
ADT's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
The dividend of ADT decreases each year by -23.00%.
ADT has paid a dividend for at least 10 years, which is 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
5.3 Sustainability
31.50% of the earnings are spent on dividend by ADT. This is a low number and sustainable payout ratio.
DP31.5%
EPS Next 2Y15.87%
EPS Next 3Y15.13%
NYSE:ADT (10/28/2025, 11:13:04 AM)
8.7
-0.04 (-0.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners77.69%
Inst Owner Change0.23%
Ins Owners1.32%
Ins Owner Change-1.26%
Market Cap7.23B
Revenue(TTM)5.06B
Net Income(TTM)622.53M
Analysts75.56
Price Target9.77 (12.3%)
Short Float %3.91%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend0.2
Dividend Growth(5Y)-23%
DP31.5%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.59%
Min EPS beat(2)9.32%
Max EPS beat(2)13.86%
EPS beat(4)4
Avg EPS beat(4)11.08%
Min EPS beat(4)5.33%
Max EPS beat(4)15.8%
EPS beat(8)7
Avg EPS beat(8)115.18%
EPS beat(12)10
Avg EPS beat(12)93.1%
EPS beat(16)10
Avg EPS beat(16)40.77%
Revenue beat(2)1
Avg Revenue beat(2)0.36%
Min Revenue beat(2)-0.16%
Max Revenue beat(2)0.88%
Revenue beat(4)3
Avg Revenue beat(4)0.62%
Min Revenue beat(4)-0.16%
Max Revenue beat(4)1.12%
Revenue beat(8)4
Avg Revenue beat(8)-4.61%
Revenue beat(12)5
Avg Revenue beat(12)-5.34%
Revenue beat(16)7
Avg Revenue beat(16)-6.01%
PT rev (1m)0%
PT rev (3m)3.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.37%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)3.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 8.88 | ||
| P/S | 1.43 | ||
| P/FCF | 9.99 | ||
| P/OCF | 3.64 | ||
| P/B | 1.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.66 |
EPS(TTM)0.84
EY9.66%
EPS(NY)0.98
Fwd EY11.27%
FCF(TTM)0.87
FCFY10.01%
OCF(TTM)2.39
OCFY27.49%
SpS6.09
BVpS4.4
TBVpS-7.36
PEG (NY)0.51
PEG (5Y)N/A
Graham Number9.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 17.01% | ||
| ROCE | 9.36% | ||
| ROIC | 7% | ||
| ROICexc | 7.02% | ||
| ROICexgc | 23.78% | ||
| OM | 25.77% | ||
| PM (TTM) | 12.31% | ||
| GM | 81.28% | ||
| FCFM | 14.31% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 10.8 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 93.37% | ||
| Cap/Sales | 25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.81% | ||
| Profit Quality | 116.28% | ||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 0.58 |
F-Score6
WACC6.86%
ROIC/WACC1.02
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)27.27%
EPS 3Y93.99%
EPS 5Y-7.53%
EPS Q2Q%35.29%
EPS Next Y20.51%
EPS Next 2Y15.87%
EPS Next 3Y15.13%
EPS Next 5YN/A
Revenue 1Y (TTM)4.22%
Revenue growth 3Y-2.64%
Revenue growth 5Y-0.9%
Sales Q2Q%6.8%
Revenue Next Year5.45%
Revenue Next 2Y4.89%
Revenue Next 3Y4.66%
Revenue Next 5YN/A
EBIT growth 1Y13.89%
EBIT growth 3Y185.05%
EBIT growth 5Y29.39%
EBIT Next Year118%
EBIT Next 3Y34.02%
EBIT Next 5Y25.29%
FCF growth 1Y51.53%
FCF growth 3Y76.31%
FCF growth 5Y4.03%
OCF growth 1Y6.63%
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.
What is the valuation status of ADT INC (ADT) stock?
ChartMill assigns a valuation rating of 9 / 10 to ADT INC (ADT). This can be considered as Undervalued.
Can you provide the profitability details for ADT INC?
ADT INC (ADT) has a profitability rating of 7 / 10.
Can you provide the financial health for ADT stock?
The financial health rating of ADT INC (ADT) is 2 / 10.
What is the earnings growth outlook for ADT INC?
The Earnings per Share (EPS) of ADT INC (ADT) is expected to grow by 20.51% in the next year.