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ADTRAN HOLDINGS INC (ADTN) Stock Fundamental Analysis

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

7.79  +0.13 (+1.7%)

Premarket: 7.75 -0.04 (-0.51%)

Fundamental Rating

3

Overall ADTN gets a fundamental rating of 3 out of 10. We evaluated ADTN against 49 industry peers in the Communications Equipment industry. ADTN may be in some trouble as it scores bad on both profitability and health. ADTN has a correct valuation and a medium growth rate. Finally ADTN also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

ADTN had negative earnings in the past year.
In the past year ADTN had a positive cash flow from operations.
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

With a Return On Assets value of -38.23%, ADTN is not doing good in the industry: 81.63% of the companies in the same industry are doing better.
The Return On Equity of ADTN (-335.44%) is worse than 89.80% of its industry peers.
Industry RankSector Rank
ROA -38.23%
ROE -335.44%
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's Gross Margin of 37.38% is in line compared 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 37.38%
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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3

2. Health

2.1 Basic Checks

ADTN does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ADTN has been increased compared to 1 year ago.
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

ADTN has an Altman-Z score of 0.43. 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 (0.43) which is comparable to the rest of the industry.
ADTN has a debt to FCF ratio of 4.75. This is a neutral value as ADTN would need 4.75 years to pay back of all of its debts.
ADTN has a Debt to FCF ratio (4.75) which is comparable to the rest of the industry.
ADTN has a Debt/Equity ratio of 1.41. This is a high value indicating a heavy dependency on external financing.
ADTN's Debt to Equity ratio of 1.41 is on the low side compared to the rest of the industry. ADTN is outperformed by 83.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.41
Debt/FCF 4.75
Altman-Z 0.43
ROIC/WACCN/A
WACC10.16%
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

ADTN has a Current Ratio of 2.08. This indicates that ADTN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.08, ADTN is in line with its industry, outperforming 53.06% of the companies in the same industry.
ADTN has a Quick Ratio of 1.16. 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 1.16, ADTN is in line with its industry, outperforming 40.82% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.08
Quick Ratio 1.16
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

ADTN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 75.97%, which is quite impressive.
ADTN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.70%.
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)75.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)-19.7%
Revenue growth 3Y17.9%
Revenue growth 5Y11.72%
Sales Q2Q%7.7%

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 92.00% on average per year.
ADTN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.23% yearly.
EPS Next Y171.73%
EPS Next 2Y92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.82%
Revenue Next 2Y11.23%
Revenue Next 3YN/A
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.
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 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 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.
A Price/Forward Earnings ratio of 35.03 indicates a quite expensive valuation of ADTN.
The rest of the industry has a similar Price/Forward Earnings ratio as ADTN.
ADTN's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.49.
Industry RankSector Rank
PE N/A
Fwd PE 35.03
ADTN Price Earnings VS Forward Price EarningsADTN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADTN is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ADTN is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 15.59
EV/EBITDA 65.93
ADTN Per share dataADTN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

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.
ADTN's earnings are expected to grow with 92.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y92%
EPS Next 3YN/A

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7

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 -24.88% 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.
Compared to an average industry Dividend Yield of 3.67, ADTN pays a better dividend. On top of this ADTN pays more dividend than 97.96% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, 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.
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 Years20
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 2Y92%
EPS Next 3YN/A
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 (5/1/2025, 8:44:08 PM)

Premarket: 7.75 -0.04 (-0.51%)

7.79

+0.13 (+1.7%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-26 2025-02-26/amc
Earnings (Next)05-07 2025-05-07/amc
Inst Owners89.08%
Inst Owner Change-0.62%
Ins Owners1.31%
Ins Owner Change10.26%
Market Cap622.89M
Analysts76.92
Price Target13.46 (72.79%)
Short Float %2.39%
Short Ratio1.64
Dividend
Industry RankSector Rank
Dividend Yield 6.65%
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)45.53%
Min EPS beat(2)-8.93%
Max EPS beat(2)100%
EPS beat(4)2
Avg EPS beat(4)2.85%
Min EPS beat(4)-161.44%
Max EPS beat(4)100%
EPS beat(8)3
Avg EPS beat(8)-150.75%
EPS beat(12)5
Avg EPS beat(12)-74.73%
EPS beat(16)9
Avg EPS beat(16)2.63%
Revenue beat(2)1
Avg Revenue beat(2)-0.78%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)0.06%
Revenue beat(4)1
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-1.91%
Max Revenue beat(4)0.06%
Revenue beat(8)1
Avg Revenue beat(8)-3.02%
Revenue beat(12)2
Avg Revenue beat(12)-2.54%
Revenue beat(16)3
Avg Revenue beat(16)-1.72%
PT rev (1m)0%
PT rev (3m)34.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.5%
EPS NY rev (1m)0%
EPS NY rev (3m)15.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.45%
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)2.23%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 35.03
P/S 0.68
P/FCF 15.59
P/OCF 6.04
P/B 4.63
P/tB N/A
EV/EBITDA 65.93
EPS(TTM)-0.31
EYN/A
EPS(NY)0.22
Fwd EY2.85%
FCF(TTM)0.5
FCFY6.41%
OCF(TTM)1.29
OCFY16.55%
SpS11.54
BVpS1.68
TBVpS-2.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -38.23%
ROE -335.44%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 37.38%
FCFM 4.33%
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 Turnover0.78
Health
Industry RankSector Rank
Debt/Equity 1.41
Debt/FCF 4.75
Debt/EBITDA 17.01
Cap/Depr 69.38%
Cap/Sales 6.84%
Interest Coverage N/A
Cash Conversion 924.64%
Profit Quality N/A
Current Ratio 2.08
Quick Ratio 1.16
Altman-Z 0.43
F-Score4
WACC10.16%
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)75.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y171.73%
EPS Next 2Y92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-19.7%
Revenue growth 3Y17.9%
Revenue growth 5Y11.72%
Sales Q2Q%7.7%
Revenue Next Year12.82%
Revenue Next 2Y11.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y41.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year32187.9%
EBIT Next 3YN/A
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