ADTRAN NETWORKING SE(FRA:ADV) stock Fundamental Analysis

Fundamental Rating

ADV gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 24 industry peers in the Communications Equipment industry. While ADV seems to be doing ok healthwise, there are quite some concerns on its profitability. ADV has a expensive valuation and it also scores bad on growth.

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1. Profitability

1.1 Basic Checks

ADV had negative earnings in the past year.

In the past year ADV had a positive cash flow from operations.

ADV had positive earnings in 4 of the past 5 years.

ADV had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of ADV (-2.13%) is comparable to the rest of the industry.

ADV has a Return On Equity (-3.82%) which is comparable to the rest of the industry.

ADV's Return On Invested Capital of 2.19% is in line compared to the rest of the industry. ADV outperforms 54.17% of its industry peers.

The Average Return On Invested Capital over the past 3 years for ADV is in line with the industry average of 7.23%.

		Industry Rank	Sector Rank
ROA	-2.13%
ROE	-3.82%
ROIC	2.19%

ROA(3y)3.48%

ROA(5y)3.16%

ROE(3y)6.16%

ROE(5y)5.79%

ROIC(3y)5.72%

ROIC(5y)5%

1.3 Margins

With a Operating Margin value of 2.71%, ADV perfoms like the industry average, outperforming 58.33% of the companies in the same industry.

ADV's Operating Margin has declined in the last couple of years.

The Gross Margin of ADV (34.99%) is worse than 79.17% of its industry peers.

In the last couple of years the Gross Margin of ADV has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	2.71%
PM (TTM)	N/A
GM	34.99%

OM growth 3Y-19.55%

OM growth 5Y-1.93%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.2%

GM growth 5Y-0.68%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

ADV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.

ADV has about the same amout of shares outstanding than it did 1 year ago.

Compared to 5 years ago, ADV has more shares outstanding

The debt/assets ratio for ADV has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 3.39 indicates that ADV is not in any danger for bankruptcy at the moment.

ADV has a Altman-Z score of 3.39. This is amongst the best in the industry. ADV outperforms 87.50% of its industry peers.

ADV has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.

ADV has a better Debt to Equity ratio (0.24) than 66.67% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.24
Debt/FCF	N/A
Altman-Z	3.39

ROIC/WACC0.31

WACC6.96%

2.3 Liquidity

ADV has a Current Ratio of 2.34. This indicates that ADV is financially healthy and has no problem in meeting its short term obligations.

Looking at the Current ratio, with a value of 2.34, ADV is in the better half of the industry, outperforming 70.83% of the companies in the same industry.

ADV has a Quick Ratio of 1.73. This is a normal value and indicates that ADV is financially healthy and should not expect problems in meeting its short term obligations.

ADV has a Quick ratio of 1.73. This is in the better half of the industry: ADV outperforms 75.00% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.34
Quick Ratio	1.73

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

ADV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -179.69%.

ADV shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.82%.

The Revenue has been growing slightly by 4.10% on average over the past years.

EPS 1Y (TTM)-179.69%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-125.16%

Revenue 1Y (TTM)-13.82%

Revenue growth 3Y2.8%

Revenue growth 5Y4.1%

Sales Q2Q%-36.44%

3.2 Future

The Earnings Per Share is expected to grow by 122.40% on average over the next years. This is a very strong growth

The Revenue is expected to decrease by -5.69% on average over the next years.

EPS Next Y-650%

EPS Next 2Y112.13%

EPS Next 3Y122.4%

EPS Next 5YN/A

Revenue Next Year-30.65%

Revenue Next 2Y-12.66%

Revenue Next 3Y-5.69%

Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ADV. In the last year negative earnings were reported.

ADV is valuated quite expensively with a Price/Forward Earnings ratio of 400.00.

Based on the Price/Forward Earnings ratio, ADV is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.

ADV is valuated expensively when we compare the Price/Forward Earnings ratio to 21.72, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	400

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADV is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	13.31

4.3 Compensation for Growth

ADV's earnings are expected to grow with 122.40% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y112.13%

EPS Next 3Y122.4%

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5. Dividend

5.1 Amount

ADV has a Yearly Dividend Yield of 2.57%.

Compared to an average industry Dividend Yield of 3.58, ADV pays a bit more dividend than its industry peers.

Compared to an average S&P500 Dividend Yield of 2.39, ADV has a dividend comparable with the average S&P500 company.

		Industry Rank	Sector Rank
Dividend Yield	2.57%

5.2 History

Dividend Growth(5Y)N/A

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

DPN/A

EPS Next 2Y112.13%

EPS Next 3Y122.4%

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ADTRAN NETWORKING SE

FRA:ADV (3/21/2025, 7:00:00 PM)

20.2

0 (0%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupTechnology Hardware & Equipment

GICS IndustryCommunications Equipment

Earnings (Last)02-27 2025-02-27/amc

Earnings (Next)05-05 2025-05-05

Inst Owners28.66%

Inst Owner ChangeN/A

Ins OwnersN/A

Ins Owner ChangeN/A

Market Cap1.05B

Analysts42.86

Price Target17.34 (-14.16%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	2.57%

Yearly DividendN/A

Dividend Growth(5Y)N/A

DPN/A

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)N/A

Avg EPS beat(2)N/A

Min EPS beat(2)N/A

Max EPS beat(2)N/A

EPS beat(4)N/A

Avg EPS beat(4)N/A

Min EPS beat(4)N/A

Max EPS beat(4)N/A

EPS beat(8)N/A

Avg EPS beat(8)N/A

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)N/A

Avg Revenue beat(2)N/A

Min Revenue beat(2)N/A

Max Revenue beat(2)N/A

Revenue beat(4)N/A

Avg Revenue beat(4)N/A

Min Revenue beat(4)N/A

Max Revenue beat(4)N/A

Revenue beat(8)N/A

Avg Revenue beat(8)N/A

Revenue beat(12)N/A

Avg Revenue beat(12)N/A

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)0%

PT rev (3m)0%

EPS NQ rev (1m)N/A

EPS NQ rev (3m)N/A

EPS NY rev (1m)0%

EPS NY rev (3m)-275%

Revenue NQ rev (1m)N/A

Revenue NQ rev (3m)N/A

Revenue NY rev (1m)0%

Revenue NY rev (3m)-6.52%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	400
P/S	1.71
P/FCF	N/A
P/OCF	20.18
P/B	2.77
P/tB	5.99
EV/EBITDA	13.31

EPS(TTM)-0.28

EYN/A

EPS(NY)0.05

Fwd EY0.25%

FCF(TTM)-0.29

FCFYN/A

OCF(TTM)1

OCFY4.96%

SpS11.79

BVpS7.3

TBVpS3.37

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-2.13%
ROE	-3.82%
ROCE	3.11%
ROIC	2.19%
ROICexc	2.37%
ROICexgc	4.05%
OM	2.71%
PM (TTM)	N/A
GM	34.99%
FCFM	N/A

ROA(3y)3.48%

ROA(5y)3.16%

ROE(3y)6.16%

ROE(5y)5.79%

ROIC(3y)5.72%

ROIC(5y)5%

ROICexc(3y)7.1%

ROICexc(5y)6.14%

ROICexgc(3y)17.44%

ROICexgc(5y)15.25%

ROCE(3y)8.12%

ROCE(5y)7.1%

ROICexcg growth 3Y-38.42%

ROICexcg growth 5Y-19.29%

ROICexc growth 3Y-29.14%

ROICexc growth 5Y-8.59%

OM growth 3Y-19.55%

OM growth 5Y-1.93%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.2%

GM growth 5Y-0.68%

F-Score4

Asset Turnover0.9

Health

		Industry Rank	Sector Rank
Debt/Equity	0.24
Debt/FCF	N/A
Debt/EBITDA	1.09
Cap/Depr	99.3%
Cap/Sales	10.98%
Interest Coverage	4.68
Cash Conversion	61.69%
Profit Quality	N/A
Current Ratio	2.34
Quick Ratio	1.73
Altman-Z	3.39

F-Score4

WACC6.96%

ROIC/WACC0.31

Cap/Depr(3y)97.03%

Cap/Depr(5y)95.62%

Cap/Sales(3y)10.68%

Cap/Sales(5y)10.65%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-179.69%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-125.16%

EPS Next Y-650%

EPS Next 2Y112.13%

EPS Next 3Y122.4%

EPS Next 5YN/A

Revenue 1Y (TTM)-13.82%

Revenue growth 3Y2.8%

Revenue growth 5Y4.1%

Sales Q2Q%-36.44%

Revenue Next Year-30.65%

Revenue Next 2Y-12.66%

Revenue Next 3Y-5.69%

Revenue Next 5YN/A

EBIT growth 1Y-55.31%

EBIT growth 3Y-17.3%

EBIT growth 5Y2.09%

EBIT Next Year4200%

EBIT Next 3Y319.83%

EBIT Next 5YN/A

FCF growth 1Y-32.64%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-10.07%

OCF growth 3Y-27.12%

OCF growth 5Y-9.03%

ADTRAN NETWORKING SE (ADV.DE) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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