ADTRAN HOLDINGS INC (ADTN)
US00486H1059 - Common Stock
Overall ADTN gets a fundamental rating of 3 out of 10. We evaluated ADTN against 54 industry peers in the Communications Equipment industry. Both the profitability and financial health of ADTN have multiple concerns. 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 negative operating cash flow in the past year.
In the past 5 years ADTN reported 4 times negative net income.
In the past 5 years ADTN reported 4 times negative operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -14.91%, ADTN is doing worse than 74.07% of the companies in the same industry.
The Return On Equity of ADTN (-42.18%) is worse than 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.91% | ||
| ROE | -42.18% | ||
| ROIC | N/A |
ROA(3y)-5.85%
ROA(5y)-5.36%
ROE(3y)-15.9%
ROE(5y)-12.2%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 31.16%, ADTN is doing worse than 72.22% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 31.16% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-10.26%
GM growth 5Y-4.16%
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.
ADTN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.71, we must say that ADTN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.71, ADTN perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
ADTN has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
ADTN has a worse Debt to Equity ratio (0.33) than 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.71 |
ROIC/WACCN/A
WACC9.86%
2.3 Liquidity
ADTN has a Current Ratio of 2.65. This indicates that ADTN is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.65, ADTN is doing good in the industry, outperforming 64.81% of the companies in the same industry.
ADTN has a Quick Ratio of 1.34. This is a normal value and indicates that ADTN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.34, ADTN is in line with its industry, outperforming 48.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.65 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
ADTN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -308.06%.
The Revenue has grown by 12.05% in the past year. This is quite good.
ADTN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.77% yearly.
EPS 1Y (TTM)-308.06%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-1008.33%
Revenue 1Y (TTM)12.05%
Revenue growth 3Y31.4%
Revenue growth 5Y16.77%
Revenue growth Q2Q-37.07%
3.2 Future
The Earnings Per Share is expected to grow by 52.66% on average over the next years. This is a very strong growth
ADTN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.40% yearly.
EPS Next Y88.7%
EPS Next 2Y52.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.79%
Revenue Next 2Y11.4%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 1.94 indicates a rather cheap valuation of ADTN.
ADTN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADTN is cheaper than 98.15% of the companies in the same industry.
ADTN is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 1.94 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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 52.66% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y52.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ADTN has a Yearly Dividend Yield of 7.88%, which is a nice return.
The stock price of ADTN dropped by -36.26% 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 17.33. ADTN pays more dividend than 98.15% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, ADTN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.88% |
5.2 History
ADTN has been paying a dividend for at least 10 years, so it has a reliable track record.
ADTN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years19
5.3 Sustainability
The earnings of ADTN are negative and hence is the payout ratio. ADTN will probably not be able to sustain this dividend level.
DP-8.48%
EPS Next 2Y52.66%
EPS Next 3YN/A
ADTRAN HOLDINGS INC
NASDAQ:ADTN (4/29/2024, 8:50:50 AM)
4.525
+0.1 (+2.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap356.12M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.88% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 1.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.91% | ||
| ROE | -42.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 31.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.65 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-308.06%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y88.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.05%
Revenue growth 3Y31.4%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y