ADTRAN HOLDINGS INC (ADTN) Stock Fundamental Analysis
USA - NASDAQ:ADTN - US00486H1059 - Common Stock
7.91 USD
-2.52 (-24.16%)
8.25 USD
+0.34 (+4.3%)
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 has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
ADTN had a positive operating cash flow in the past year.
ADTN had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: ADTN reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of ADTN (-8.96%) is worse than 70.83% of its industry peers.
ADTN has a worse Return On Equity (-64.24%) than 77.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.96% | ||
| ROE | -64.24% | ||
| 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
ADTN has a Gross Margin (37.74%) which is in line with its industry peers.
In the last couple of years the Gross Margin of ADTN has declined.
The Profit Margin and Operating Margin are not available for ADTN so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 37.74% |
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 0.51. This is a bad value and indicates that ADTN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.51, ADTN is doing worse than 62.50% of the companies in the same industry.
ADTN has a debt to FCF ratio of 3.42. This is a good value and a sign of high solvency as ADTN would need 3.42 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.42, ADTN is in line with its industry, outperforming 54.17% of the companies in the same industry.
A Debt/Equity ratio of 1.12 is on the high side and indicates that ADTN has dependencies on debt financing.
ADTN has a worse Debt to Equity ratio (1.12) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 3.42 | ||
| Altman-Z | 0.51 |
ROIC/WACCN/A
WACC9.91%
2.3 Liquidity
ADTN has a Current Ratio of 1.96. This is a normal value and indicates that ADTN is financially healthy and should not expect problems in meeting its short term obligations.
ADTN's Current ratio of 1.96 is in line compared to the rest of the industry. ADTN outperforms 47.92% of its industry peers.
A Quick Ratio of 1.19 indicates that ADTN should not have too much problems paying its short term obligations.
ADTN has a Quick ratio of 1.19. This is in the lower half of the industry: ADTN underperforms 64.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 105.71% over the past year.
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
ADTN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 61.40% yearly.
Based on estimates for the next years, ADTN will show a quite strong growth in Revenue. The Revenue will grow by 13.95% on average per year.
EPS Next Y150.81%
EPS Next 2Y87.76%
EPS Next 3Y61.4%
EPS Next 5YN/A
Revenue Next Year16.13%
Revenue Next 2Y12.18%
Revenue Next 3Y13.95%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 98.88, the valuation of ADTN can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ADTN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of ADTN to the average of the S&P500 Index (26.03), we can say ADTN is valued expensively.
ADTN is valuated correctly with a Price/Forward Earnings ratio of 16.73.
Based on the Price/Forward Earnings ratio, ADTN is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, ADTN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.88 | ||
| Fwd PE | 16.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADTN is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADTN indicates a rather cheap valuation: ADTN is cheaper than 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.38 | ||
| EV/EBITDA | 16.23 |
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 61.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.66
PEG (5Y)N/A
EPS Next 2Y87.76%
EPS Next 3Y61.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.65%, ADTN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.45, ADTN pays a better dividend. On top of this ADTN pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 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 2Y87.76%
EPS Next 3Y61.4%
7.91
-2.52 (-24.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.92%
Inst Owner Change1.37%
Ins Owners1.38%
Ins Owner Change-0.25%
Market Cap633.20M
Revenue(TTM)922.72M
Net Income(TTM)-108957000
Analysts76
Price Target12.92 (63.34%)
Short Float %9.07%
Short Ratio4.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.65% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)49.02%
Min EPS beat(2)-100%
Max EPS beat(2)198.04%
EPS beat(4)2
Avg EPS beat(4)47.28%
Min EPS beat(4)-100%
Max EPS beat(4)198.04%
EPS beat(8)3
Avg EPS beat(8)-120.99%
EPS beat(12)4
Avg EPS beat(12)-97.98%
EPS beat(16)8
Avg EPS beat(16)-6.79%
Revenue beat(2)1
Avg Revenue beat(2)-0.23%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)0.46%
Revenue beat(4)2
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-1.62%
Max Revenue beat(4)0.46%
Revenue beat(8)2
Avg Revenue beat(8)-1.98%
Revenue beat(12)3
Avg Revenue beat(12)-2.31%
Revenue beat(16)4
Avg Revenue beat(16)-1.62%
PT rev (1m)5.56%
PT rev (3m)5.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.07%
EPS NY rev (1m)0%
EPS NY rev (3m)15.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.88 | ||
| Fwd PE | 16.73 | ||
| P/S | 0.64 | ||
| P/FCF | 11.38 | ||
| P/OCF | 5.19 | ||
| P/B | 3.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.23 |
EPS(TTM)0.08
EY1.01%
EPS(NY)0.47
Fwd EY5.98%
FCF(TTM)0.69
FCFY8.79%
OCF(TTM)1.52
OCFY19.25%
SpS12.28
BVpS2.12
TBVpS-2.51
PEG (NY)0.66
PEG (5Y)N/A
Graham Number1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.96% | ||
| ROE | -64.24% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 37.74% | ||
| FCFM | 5.66% |
ROA(3y)-18.05%
ROA(5y)-11.04%
ROE(3y)-126.55%
ROE(5y)-76.29%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score4
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 3.42 | ||
| Debt/EBITDA | 4.31 | ||
| Cap/Depr | 72.98% | ||
| Cap/Sales | 6.74% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 275.99% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 0.51 |
F-Score4
WACC9.91%
ROIC/WACCN/A
Cap/Depr(3y)44.28%
Cap/Depr(5y)41.36%
Cap/Sales(3y)4.09%
Cap/Sales(5y)2.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)105.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%200%
EPS Next Y150.81%
EPS Next 2Y87.76%
EPS Next 3Y61.4%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.7%
Revenue growth 3Y17.9%
Revenue growth 5Y11.72%
Sales Q2Q%22.72%
Revenue Next Year16.13%
Revenue Next 2Y12.18%
Revenue Next 3Y13.95%
Revenue Next 5YN/A
EBIT growth 1Y41.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year31629.5%
EBIT Next 3Y626.1%
EBIT Next 5YN/A
FCF growth 1Y151.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y263.64%
OCF growth 3Y225.09%
OCF growth 5YN/A
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 of ADTRAN HOLDINGS INC (ADTN) stock?
ChartMill assigns a valuation rating of 5 / 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 are the PE and PB ratios of ADTRAN HOLDINGS INC (ADTN) stock?
The Price/Earnings (PE) ratio for ADTRAN HOLDINGS INC (ADTN) is 98.88 and the Price/Book (PB) ratio is 3.73.
What is the earnings growth outlook for ADTRAN HOLDINGS INC?
The Earnings per Share (EPS) of ADTRAN HOLDINGS INC (ADTN) is expected to grow by 150.81% in the next year.