9.585 USD
+0.01 (+0.05%)
Taking everything into account, ADTN scores 3 out of 10 in our fundamental rating. ADTN was compared to 48 industry peers in the Communications Equipment industry. ADTN may be in some trouble as it scores bad on both profitability and health. ADTN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year ADTN was profitable.
- In the past year ADTN had a positive cash flow from operations.
- In the past 5 years ADTN reported 4 times negative net income.
- In multiple years ADTN reported negative operating cash flow during the last 5 years.
1.2 Ratios
- ADTN's Return On Assets of -7.28% is on the low side compared to the rest of the industry. ADTN is outperformed by 68.75% of its industry peers.
- ADTN's Return On Equity of -62.20% is on the low side compared to the rest of the industry. ADTN is outperformed by 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.28% | ||
| ROE | -62.2% | ||
| ROIC | N/A |
ROA(3y)-18.05%
ROA(5y)-11.04%
ROE(3y)-126.55%
ROE(5y)-76.29%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With a Gross Margin value of 37.97%, ADTN perfoms like the industry average, outperforming 43.75% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 37.97% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.23%
GM growth 5Y-2.07%
2. Health
2.1 Basic Checks
- ADTN does not have a ROIC to compare to the WACC, probably because it is not profitable.
- Compared to 1 year ago, ADTN has more shares outstanding
- ADTN has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for ADTN is higher compared to a year ago.
2.2 Solvency
- ADTN has an Altman-Z score of 0.65. This is a bad value and indicates that ADTN is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of ADTN (0.65) is worse than 62.50% of its industry peers.
- ADTN has a debt to FCF ratio of 8.08. This is a slightly negative value and a sign of low solvency as ADTN would need 8.08 years to pay back of all of its debts.
- The Debt to FCF ratio of ADTN (8.08) is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.54 is on the high side and indicates that ADTN has dependencies on debt financing.
- ADTN's Debt to Equity ratio of 1.54 is on the low side compared to the rest of the industry. ADTN is outperformed by 85.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 8.08 | ||
| Altman-Z | 0.65 |
ROIC/WACCN/A
WACC10.52%
2.3 Liquidity
- A Current Ratio of 1.96 indicates that ADTN should not have too much problems paying its short term obligations.
- ADTN has a Current ratio of 1.96. This is comparable to the rest of the industry: ADTN outperforms 45.83% of its industry peers.
- A Quick Ratio of 1.23 indicates that ADTN should not have too much problems paying its short term obligations.
- ADTN has a Quick ratio of 1.23. This is in the lower half of the industry: ADTN underperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
- ADTN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 105.71%, which is quite impressive.
- ADTN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.70%.
- ADTN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.72% yearly.
EPS 1Y (TTM)105.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%200%
Revenue 1Y (TTM)-19.7%
Revenue growth 3Y17.9%
Revenue growth 5Y11.72%
Sales Q2Q%22.72%
3.2 Future
- The Earnings Per Share is expected to grow by 60.13% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 12.62% on average over the next years. This is quite good.
EPS Next Y150.3%
EPS Next 2Y89.42%
EPS Next 3Y60.13%
EPS Next 5YN/A
Revenue Next Year17.09%
Revenue Next 2Y12.71%
Revenue Next 3Y12.62%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 119.81, ADTN can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as ADTN.
- ADTN is valuated expensively when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 19.47, ADTN is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, ADTN is valued a bit cheaper than 68.75% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, ADTN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 119.81 | ||
| Fwd PE | 19.47 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ADTN is valued a bit cheaper than the industry average as 72.92% of the companies are valued more expensively.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ADTN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.47 | ||
| EV/EBITDA | 14.85 |
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.
- ADTN's earnings are expected to grow with 60.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y89.42%
EPS Next 3Y60.13%
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 0.77, ADTN pays a better dividend. On top of this ADTN pays more dividend than 97.92% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, ADTN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.65% |
5.2 History
- ADTN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y89.42%
EPS Next 3Y60.13%
ADTRAN HOLDINGS INC / ADTN FAQ
Can you provide the ChartMill fundamental rating for ADTRAN HOLDINGS INC?
ChartMill assigns a fundamental rating of 3 / 10 to ADTN.
What is the valuation status for ADTN stock?
ChartMill assigns a valuation rating of 4 / 10 to ADTRAN HOLDINGS INC (ADTN). This can be considered as Fairly Valued.
Can you provide the profitability details for ADTRAN HOLDINGS INC?
ADTRAN HOLDINGS INC (ADTN) has a profitability rating of 1 / 10.
What is the valuation of ADTRAN HOLDINGS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ADTRAN HOLDINGS INC (ADTN) is 119.81 and the Price/Book (PB) ratio is 5.42.
Can you provide the financial health for ADTN stock?
The financial health rating of ADTRAN HOLDINGS INC (ADTN) is 2 / 10.