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ADTRAN HOLDINGS INC (ADTN) Stock Fundamental Analysis

NASDAQ:ADTN - US00486H1059 - Common Stock

9.38 USD
-0.07 (-0.74%)
Last: 8/29/2025, 8:05:27 PM
9.38 USD
0 (0%)
After Hours: 8/29/2025, 8:05:27 PM
Fundamental Rating

3

ADTN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. Both the profitability and financial health of ADTN have multiple concerns. ADTN has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year ADTN has reported negative net income.
ADTN had a positive operating cash flow in the past year.
ADTN had negative earnings in 4 of the past 5 years.
In multiple years ADTN reported negative operating cash flow during the last 5 years.
ADTN Yearly Net Income VS EBIT VS OCF VS FCFADTN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M -200M -300M -400M

1.2 Ratios

With a Return On Assets value of -8.96%, ADTN is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
ADTN has a Return On Equity of -64.24%. This is in the lower half of the industry: ADTN underperforms 75.00% of its industry peers.
Industry RankSector 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
ADTN Yearly ROA, ROE, ROICADTN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -100 -200 -300

1.3 Margins

With a Gross Margin value of 37.74%, ADTN perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
ADTN's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for ADTN so they could not be analyzed.
Industry RankSector 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%
ADTN Yearly Profit, Operating, Gross MarginsADTN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40

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2

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
The number of shares outstanding for ADTN has been increased compared to 5 years ago.
The debt/assets ratio for ADTN is higher compared to a year ago.
ADTN Yearly Shares OutstandingADTN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
ADTN Yearly Total Debt VS Total AssetsADTN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

Based on the Altman-Z score of 0.58, we must say that ADTN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ADTN (0.58) is comparable to the rest of the 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.
The Debt to FCF ratio of ADTN (3.42) is comparable to the rest of the industry.
ADTN has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.12, ADTN is doing worse than 77.08% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.12
Debt/FCF 3.42
Altman-Z 0.58
ROIC/WACCN/A
WACC10.78%
ADTN Yearly LT Debt VS Equity VS FCFADTN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

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 (1.96) which is comparable to the rest of the industry.
A Quick Ratio of 1.19 indicates that ADTN should not have too much problems paying its short term obligations.
ADTN has a worse Quick ratio (1.19) than 62.50% of its industry peers.
Industry RankSector Rank
Current Ratio 1.96
Quick Ratio 1.19
ADTN Yearly Current Assets VS Current LiabilitesADTN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 98.66% over the past year.
Looking at the last year, ADTN shows a very negative growth in Revenue. The Revenue has decreased by -19.70% in the last year.
Measured over the past years, ADTN shows a quite strong growth in Revenue. The Revenue has been growing by 11.72% on average per year.
EPS 1Y (TTM)98.66%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)-19.7%
Revenue growth 3Y17.9%
Revenue growth 5Y11.72%
Sales Q2Q%17.29%

3.2 Future

ADTN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 57.52% yearly.
Based on estimates for the next years, ADTN will show a quite strong growth in Revenue. The Revenue will grow by 11.57% on average per year.
EPS Next Y152.71%
EPS Next 2Y88.06%
EPS Next 3Y57.52%
EPS Next 5YN/A
Revenue Next Year16.13%
Revenue Next 2Y12.23%
Revenue Next 3Y11.57%
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.
ADTN Yearly Revenue VS EstimatesADTN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M 1B
ADTN Yearly EPS VS EstimatesADTN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 -0.5 -1

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4

4. Valuation

4.1 Price/Earnings Ratio

ADTN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
ADTN is valuated rather expensively with a Price/Forward Earnings ratio of 19.69.
Based on the Price/Forward Earnings ratio, ADTN is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
ADTN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.72.
Industry RankSector Rank
PE N/A
Fwd PE 19.69
ADTN Price Earnings VS Forward Price EarningsADTN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -200 -400

4.2 Price Multiples

64.58% of the companies in the same industry are more expensive than ADTN, based on the Enterprise Value to EBITDA ratio.
ADTN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ADTN is cheaper than 77.08% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.5
EV/EBITDA 19.02
ADTN Per share dataADTN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

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 57.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y88.06%
EPS Next 3Y57.52%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.65%, ADTN is a good candidate for dividend investing.
ADTN's Dividend Yield is rather good when compared to the industry average which is at 3.80. ADTN pays more dividend than 97.92% of the companies in the same industry.
ADTN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 6.65%

5.2 History

ADTN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
ADTN Yearly Dividends per shareADTN Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 0.1 0.2 0.3

5.3 Sustainability

DP0%
EPS Next 2Y88.06%
EPS Next 3Y57.52%
ADTN Yearly Income VS Free CF VS DividendADTN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -100M -200M -300M -400M

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ADTRAN HOLDINGS INC

NASDAQ:ADTN (8/29/2025, 8:05:27 PM)

After market: 9.38 0 (0%)

9.38

-0.07 (-0.74%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)08-04 2025-08-04/amc
Earnings (Next)11-03 2025-11-03/amc
Inst Owners83.97%
Inst Owner Change-1.27%
Ins Owners1.38%
Ins Owner Change0.41%
Market Cap750.87M
Analysts75.71
Price Target12.24 (30.49%)
Short Float %2.45%
Short Ratio1.63
Dividend
Industry RankSector 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)0%
PT rev (3m)-9.09%
EPS NQ rev (1m)13.16%
EPS NQ rev (3m)-26.29%
EPS NY rev (1m)19.37%
EPS NY rev (3m)22.99%
Revenue NQ rev (1m)3.87%
Revenue NQ rev (3m)4.1%
Revenue NY rev (1m)3.62%
Revenue NY rev (3m)3.43%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 19.69
P/S 0.76
P/FCF 13.5
P/OCF 6.16
P/B 4.43
P/tB N/A
EV/EBITDA 19.02
EPS(TTM)-0.02
EYN/A
EPS(NY)0.48
Fwd EY5.08%
FCF(TTM)0.69
FCFY7.41%
OCF(TTM)1.52
OCFY16.24%
SpS12.28
BVpS2.12
TBVpS-2.51
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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
ROICexcg growth 3YN/A
ROICexcg 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 RankSector 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 0.58
F-Score4
WACC10.78%
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)98.66%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y152.71%
EPS Next 2Y88.06%
EPS Next 3Y57.52%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.7%
Revenue growth 3Y17.9%
Revenue growth 5Y11.72%
Sales Q2Q%17.29%
Revenue Next Year16.13%
Revenue Next 2Y12.23%
Revenue Next 3Y11.57%
Revenue Next 5YN/A
EBIT growth 1Y41.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year30089.1%
EBIT Next 3Y624.53%
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