ADT INC (ADT) Stock Fundamental Analysis

NYSE:ADT • US00090Q1031

7.89 USD
+0.03 (+0.38%)
At close: Feb 19, 2026
7.9 USD
+0.01 (+0.13%)
After Hours: 2/19/2026, 4:40:42 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to ADT. ADT was compared to 75 industry peers in the Diversified Consumer Services industry. ADT has an excellent profitability rating, but there are concerns on its financial health. ADT is valued quite cheap, while showing a decent growth score. This is a good combination!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • ADT had positive earnings in the past year.
  • ADT had a positive operating cash flow in the past year.
  • In multiple years ADT reported negative net income over the last 5 years.
  • Each year in the past 5 years ADT had a positive operating cash flow.
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 0 500M -500M 1B 1.5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 4.01%, ADT is in the better half of the industry, outperforming 61.33% of the companies in the same industry.
  • ADT has a Return On Equity of 17.51%. This is amongst the best in the industry. ADT outperforms 81.33% of its industry peers.
  • ADT has a Return On Invested Capital of 6.65%. This is in the better half of the industry: ADT outperforms 66.67% of its industry peers.
  • ADT had an Average Return On Invested Capital over the past 3 years of 5.35%. This is significantly below the industry average of 10.88%.
  • The 3 year average ROIC (5.35%) for ADT is below the current ROIC(6.65%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.01%
ROE 17.51%
ROIC 6.65%
ROA(3y)2.26%
ROA(5y)0.17%
ROE(3y)9.77%
ROE(5y)-0.4%
ROIC(3y)5.35%
ROIC(5y)3.49%
ADT Yearly ROA, ROE, ROICADT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20

1.3 Margins

  • ADT has a Profit Margin of 12.53%. This is in the better half of the industry: ADT outperforms 76.00% of its industry peers.
  • ADT's Operating Margin of 25.25% is amongst the best of the industry. ADT outperforms 96.00% of its industry peers.
  • ADT's Operating Margin has improved in the last couple of years.
  • The Gross Margin of ADT (80.92%) is better than 94.67% of its industry peers.
  • ADT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 25.25%
PM (TTM) 12.53%
GM 80.92%
OM growth 3Y192.77%
OM growth 5Y30.57%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.32%
GM growth 5Y2.56%
ADT Yearly Profit, Operating, Gross MarginsADT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADT is destroying value.
  • The number of shares outstanding for ADT has been reduced compared to 1 year ago.
  • ADT has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for ADT has been reduced compared to a year ago.
ADT Yearly Shares OutstandingADT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 5B 10B 15B

2.2 Solvency

  • ADT has an Altman-Z score of 0.60. 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 (0.60) which is in line with its industry peers.
  • ADT has a debt to FCF ratio of 9.92. This is a negative value and a sign of low solvency as ADT would need 9.92 years to pay back of all of its debts.
  • ADT has a Debt to FCF ratio of 9.92. This is in the better half of the industry: ADT outperforms 65.33% of its industry peers.
  • A Debt/Equity ratio of 1.99 is on the high side and indicates that ADT has dependencies on debt financing.
  • With a Debt to Equity ratio value of 1.99, ADT is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.99
Debt/FCF 9.92
Altman-Z 0.6
ROIC/WACC0.87
WACC7.64%
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 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 0.67 indicates that ADT may have some problems paying its short term obligations.
  • The Current ratio of ADT (0.67) is worse than 77.33% of its industry peers.
  • A Quick Ratio of 0.54 indicates that ADT may have some problems paying its short term obligations.
  • ADT has a worse Quick ratio (0.54) than 77.33% of its industry peers.
Industry RankSector Rank
Current Ratio 0.67
Quick Ratio 0.54
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 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. Growth

3.1 Past

  • ADT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.54%, which is quite good.
  • Measured over the past years, ADT shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.53% on average per year.
  • The Revenue has been growing slightly by 5.20% in the past year.
  • The Revenue has been decreasing by -0.90% on average over the past years.
EPS 1Y (TTM)11.54%
EPS 3Y93.99%
EPS 5Y-7.53%
EPS Q2Q%15%
Revenue 1Y (TTM)5.2%
Revenue growth 3Y-2.64%
Revenue growth 5Y-0.9%
Sales Q2Q%4.34%

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 13.34% on average per year.
  • ADT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.24% yearly.
EPS Next Y22%
EPS Next 2Y14.39%
EPS Next 3Y13.34%
EPS Next 5YN/A
Revenue Next Year5.35%
Revenue Next 2Y4.47%
Revenue Next 3Y4.24%
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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 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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Find the best growth stocksShow best growing peers

9

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 9.07 indicates a reasonable valuation of ADT.
  • 85.33% of the companies in the same industry are more expensive than ADT, based on the Price/Earnings ratio.
  • ADT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.27.
  • The Price/Forward Earnings ratio is 8.26, which indicates a very decent valuation of ADT.
  • ADT's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADT is cheaper than 92.00% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.16, ADT is valued rather cheaply.
Industry RankSector Rank
PE 9.07
Fwd PE 8.26
ADT Price Earnings VS Forward Price EarningsADT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ADT is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, ADT is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 8.22
EV/EBITDA 5.34
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • ADT has a very decent profitability rating, which may justify a higher PE ratio.
  • ADT's earnings are expected to grow with 13.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y14.39%
EPS Next 3Y13.34%

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

6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.88%, ADT has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.41, ADT pays a better dividend. On top of this ADT pays more dividend than 94.67% of the companies listed in the same industry.
  • ADT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
Industry RankSector Rank
Dividend Yield 2.88%

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
ADT Yearly Dividends per shareADT Yearly Dividends per shareYearly Dividends per share 2016 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

  • ADT pays out 29.94% of its income as dividend. This is a sustainable payout ratio.
DP29.94%
EPS Next 2Y14.39%
EPS Next 3Y13.34%
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 0 500M -500M
ADT Dividend Payout.ADT Dividend Payout, showing the Payout Ratio.ADT Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

ADT INC

NYSE:ADT (2/19/2026, 4:40:42 PM)

After market: 7.9 +0.01 (+0.13%)

7.89

+0.03 (+0.38%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-04
Earnings (Next)03-03
Inst Owners89.52%
Inst Owner Change-2.1%
Ins Owners1.32%
Ins Owner Change0.08%
Market Cap6.47B
Revenue(TTM)5.11B
Net Income(TTM)640.56M
Analysts75.56
Price Target9.67 (22.56%)
Short Float %4.11%
Short Ratio2.92
Dividend
Industry RankSector Rank
Dividend Yield 2.88%
Yearly Dividend0.2
Dividend Growth(5Y)-23%
DP29.94%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.14%
Min EPS beat(2)6.41%
Max EPS beat(2)13.86%
EPS beat(4)4
Avg EPS beat(4)8.73%
Min EPS beat(4)5.33%
Max EPS beat(4)13.86%
EPS beat(8)7
Avg EPS beat(8)76.37%
EPS beat(12)10
Avg EPS beat(12)91.66%
EPS beat(16)11
Avg EPS beat(16)51.99%
Revenue beat(2)0
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.76%
Max Revenue beat(2)-0.16%
Revenue beat(4)2
Avg Revenue beat(4)0.27%
Min Revenue beat(4)-0.76%
Max Revenue beat(4)1.12%
Revenue beat(8)4
Avg Revenue beat(8)-1.87%
Revenue beat(12)5
Avg Revenue beat(12)-3.74%
Revenue beat(16)6
Avg Revenue beat(16)-6.11%
PT rev (1m)0%
PT rev (3m)-1.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.89%
EPS NY rev (1m)0%
EPS NY rev (3m)1.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
Industry RankSector Rank
PE 9.07
Fwd PE 8.26
P/S 1.27
P/FCF 8.22
P/OCF 3.28
P/B 1.77
P/tB N/A
EV/EBITDA 5.34
EPS(TTM)0.87
EY11.03%
EPS(NY)0.96
Fwd EY12.11%
FCF(TTM)0.96
FCFY12.16%
OCF(TTM)2.4
OCFY30.47%
SpS6.24
BVpS4.46
TBVpS-7.43
PEG (NY)0.41
PEG (5Y)N/A
Graham Number9.35
Profitability
Industry RankSector Rank
ROA 4.01%
ROE 17.51%
ROCE 8.9%
ROIC 6.65%
ROICexc 6.68%
ROICexgc 20.58%
OM 25.25%
PM (TTM) 12.53%
GM 80.92%
FCFM 15.39%
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 RankSector Rank
Debt/Equity 1.99
Debt/FCF 9.92
Debt/EBITDA 2.74
Cap/Depr 86.6%
Cap/Sales 23.16%
Interest Coverage 250
Cash Conversion 74.13%
Profit Quality 122.81%
Current Ratio 0.67
Quick Ratio 0.54
Altman-Z 0.6
F-Score6
WACC7.64%
ROIC/WACC0.87
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)11.54%
EPS 3Y93.99%
EPS 5Y-7.53%
EPS Q2Q%15%
EPS Next Y22%
EPS Next 2Y14.39%
EPS Next 3Y13.34%
EPS Next 5YN/A
Revenue 1Y (TTM)5.2%
Revenue growth 3Y-2.64%
Revenue growth 5Y-0.9%
Sales Q2Q%4.34%
Revenue Next Year5.35%
Revenue Next 2Y4.47%
Revenue Next 3Y4.24%
Revenue Next 5YN/A
EBIT growth 1Y7.55%
EBIT growth 3Y185.05%
EBIT growth 5Y29.39%
EBIT Next Year117.2%
EBIT Next 3Y33.03%
EBIT Next 5Y25.29%
FCF growth 1Y60.08%
FCF growth 3Y76.31%
FCF growth 5Y4.03%
OCF growth 1Y8.72%
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.


Can you provide the valuation status for ADT INC?

ChartMill assigns a valuation rating of 9 / 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 6 / 10 and the dividend payout ratio is 29.94%.