ADTRAN HOLDINGS INC (ADTN) Stock Fundamental Analysis
USA - NASDAQ:ADTN - US00486H1059 - Common Stock
9.5 USD
-0.08 (-0.84%)
9.3601 USD
-0.14 (-1.47%)
Overall ADTN gets a fundamental rating of 3 out of 10. We evaluated ADTN against 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
ADTN had negative earnings in the past year.
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 72.92% of its industry peers.
ADTN has a worse Return On Equity (-64.24%) than 75.00% 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 of 37.74%. This is comparable to the rest of the industry: ADTN outperforms 45.83% of its industry peers.
ADTN's Gross Margin has declined in the last couple of years.
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 | 37.74% |
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.
ADTN has more shares outstanding than it did 1 year ago.
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 0.58. 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 (0.58) is comparable to the rest of the industry.
The Debt to FCF ratio of ADTN is 3.42, which is a good value as it means it would take ADTN, 3.42 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ADTN (3.42) is comparable to the rest of the 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 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 3.42 | ||
| Altman-Z | 0.58 |
ROIC/WACCN/A
WACC10.43%
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 has a Current ratio of 1.96. This is comparable to the rest of the industry: ADTN outperforms 47.92% of its industry peers.
ADTN has a Quick Ratio of 1.19. This is a normal value and indicates that ADTN is financially healthy and should not expect problems in meeting 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 98.66% over the past year.
The Revenue for ADTN has decreased by -19.70% in the past year. This is quite bad
The Revenue has been growing by 11.72% on average over the past years. This is quite good.
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
Based on estimates for the next years, ADTN will show a very strong growth in Earnings Per Share. The EPS will grow by 57.52% on average per year.
ADTN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.57% yearly.
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
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
The Price/Earnings Ratio is negative for ADTN. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 19.94 indicates a rather expensive valuation of ADTN.
ADTN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADTN is cheaper than 68.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, ADTN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.94 |
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 81.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.67 | ||
| EV/EBITDA | 19.12 |
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.
A more expensive valuation may be justified as ADTN's earnings are expected to grow with 57.52% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y88.06%
EPS Next 3Y57.52%
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 3.59, 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 2Y88.06%
EPS Next 3Y57.52%
9.5
-0.08 (-0.84%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.97%
Inst Owner Change-1.27%
Ins Owners1.38%
Ins Owner Change-0.49%
Market Cap760.48M
Analysts75.71
Price Target12.24 (28.84%)
Short Float %2.04%
Short Ratio1.53
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)72%
EPS NY rev (1m)0%
EPS NY rev (3m)22.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.94 | ||
| P/S | 0.77 | ||
| P/FCF | 13.67 | ||
| P/OCF | 6.24 | ||
| P/B | 4.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.12 |
EPS(TTM)-0.02
EYN/A
EPS(NY)0.48
Fwd EY5.01%
FCF(TTM)0.69
FCFY7.32%
OCF(TTM)1.52
OCFY16.03%
SpS12.28
BVpS2.12
TBVpS-2.51
PEG (NY)N/A
PEG (5Y)N/A
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
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 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 | 0.58 |
F-Score4
WACC10.43%
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