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ADTRAN HOLDINGS INC (ADTN) Stock Fundamental Analysis

NASDAQ:ADTN - Nasdaq - US00486H1059 - Common Stock - Currency: USD

8.03  -0.13 (-1.59%)

Premarket: 7.99 -0.04 (-0.5%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to ADTN. ADTN was compared to 49 industry peers in the Communications Equipment industry. ADTN may be in some trouble as it scores bad on both profitability and health. ADTN is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

ADTN had negative earnings 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.
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

Looking at the Return On Assets, with a value of -38.73%, ADTN is doing worse than 81.63% of the companies in the same industry.
ADTN has a worse Return On Equity (-332.73%) than 87.76% of its industry peers.
Industry RankSector Rank
ROA -38.73%
ROE -332.73%
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

ADTN has a Gross Margin of 37.60%. This is comparable to the rest of the industry: ADTN outperforms 42.86% of 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 RankSector Rank
OM N/A
PM (TTM) N/A
GM 37.6%
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
Compared to 5 years ago, ADTN has more shares outstanding
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

ADTN has an Altman-Z score of 0.60. This is a bad value and indicates that ADTN is not financially healthy and even has some risk of bankruptcy.
ADTN has a Altman-Z score of 0.60. This is comparable to the rest of the industry: ADTN outperforms 51.02% of its industry peers.
ADTN has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.37, ADTN is not doing good in the industry: 81.63% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.37
Debt/FCF N/A
Altman-Z 0.6
ROIC/WACCN/A
WACC10.32%
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 2.02 indicates that ADTN has no problem at all paying its short term obligations.
The Current ratio of ADTN (2.02) is comparable to the rest of the industry.
ADTN has a Quick Ratio of 1.18. This is a normal value and indicates that ADTN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ADTN (1.18) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.02
Quick Ratio 1.18
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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4

3. Growth

3.1 Past

ADTN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 79.20%, which is quite impressive.
Looking at the last year, ADTN shows a very negative growth in Revenue. The Revenue has decreased by -19.70% in the last year.
The Revenue has been growing by 11.72% on average over the past years. This is quite good.
EPS 1Y (TTM)79.2%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%250%
Revenue 1Y (TTM)-19.7%
Revenue growth 3Y17.9%
Revenue growth 5Y11.72%
Sales Q2Q%9.54%

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 8.60% on average per year.
EPS Next Y142.86%
EPS Next 2Y87.23%
EPS Next 3Y57.52%
EPS Next 5YN/A
Revenue Next Year12.28%
Revenue Next 2Y10.7%
Revenue Next 3Y8.6%
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 decreasing.
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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3

4. Valuation

4.1 Price/Earnings Ratio

ADTN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 17.21, the valuation of ADTN can be described as rather expensive.
ADTN's Price/Forward Earnings is on the same level as the industry average.
ADTN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 17.21
ADTN Price Earnings VS Forward Price EarningsADTN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20 -20 -30

4.2 Price Multiples

ADTN's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 101.83
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 2Y87.23%
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.
The stock price of ADTN dropped by -24.03% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ADTN's Dividend Yield is rather good when compared to the industry average which is at 3.56. ADTN pays more dividend than 97.96% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ADTN pays a better dividend.
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 2Y87.23%
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 (5/30/2025, 8:00:00 PM)

Premarket: 7.99 -0.04 (-0.5%)

8.03

-0.13 (-1.59%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)08-04 2025-08-04/amc
Inst Owners89.08%
Inst Owner Change0.94%
Ins Owners1.31%
Ins Owner Change11.37%
Market Cap642.24M
Analysts76.92
Price Target13.46 (67.62%)
Short Float %2.89%
Short Ratio2.09
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)2
Avg EPS beat(2)149.02%
Min EPS beat(2)100%
Max EPS beat(2)198.04%
EPS beat(4)2
Avg EPS beat(4)31.92%
Min EPS beat(4)-161.44%
Max EPS beat(4)198.04%
EPS beat(8)4
Avg EPS beat(8)-95.99%
EPS beat(12)5
Avg EPS beat(12)-84.29%
EPS beat(16)9
Avg EPS beat(16)1.21%
Revenue beat(2)1
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)0.06%
Revenue beat(4)1
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-1.91%
Max Revenue beat(4)0.06%
Revenue beat(8)1
Avg Revenue beat(8)-2.36%
Revenue beat(12)2
Avg Revenue beat(12)-2.46%
Revenue beat(16)3
Avg Revenue beat(16)-1.71%
PT rev (1m)0%
PT rev (3m)14.78%
EPS NQ rev (1m)-140%
EPS NQ rev (3m)-135.05%
EPS NY rev (1m)-40.25%
EPS NY rev (3m)-30.77%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)1.59%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)1.74%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 17.21
P/S 0.55
P/FCF N/A
P/OCF N/A
P/B 4.62
P/tB N/A
EV/EBITDA 101.83
EPS(TTM)-0.26
EYN/A
EPS(NY)0.47
Fwd EY5.81%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS14.63
BVpS1.74
TBVpS-2.62
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -38.73%
ROE -332.73%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 37.6%
FCFM 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
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-ScoreN/A
Asset Turnover0.98
Health
Industry RankSector Rank
Debt/Equity 1.37
Debt/FCF N/A
Debt/EBITDA 26.48
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.02
Quick Ratio 1.18
Altman-Z 0.6
F-ScoreN/A
WACC10.32%
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)79.2%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%250%
EPS Next Y142.86%
EPS Next 2Y87.23%
EPS Next 3Y57.52%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.7%
Revenue growth 3Y17.9%
Revenue growth 5Y11.72%
Sales Q2Q%9.54%
Revenue Next Year12.28%
Revenue Next 2Y10.7%
Revenue Next 3Y8.6%
Revenue Next 5YN/A
EBIT growth 1Y41.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year28497.5%
EBIT Next 3Y623.92%
EBIT Next 5YN/A
FCF growth 1Y145.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y326.01%
OCF growth 3Y225.09%
OCF growth 5YN/A