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. ADV scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ADV does not seem to be growing, but still is valued expensively.

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1. Profitability

1.1 Basic Checks

In the past year ADV has reported negative net income.

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

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

Each year in the past 5 years ADV had a positive operating cash flow.

1.2 Ratios

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

ADV's Return On Equity of -3.82% is in line compared to the rest of the industry. ADV outperforms 58.33% of its industry peers.

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 7.29%.

		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

ADV's Operating Margin of 2.71% is in line compared to the rest of the industry. ADV outperforms 58.33% of its industry peers.

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

ADV's Gross Margin of 34.99% is on the low side compared to the rest of the industry. ADV is outperformed by 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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADV is destroying value.

Compared to 1 year ago, ADV has about the same amount of shares outstanding.

The number of shares outstanding for ADV has been increased compared to 5 years ago.

ADV has a better debt/assets ratio than last year.

2.2 Solvency

ADV has an Altman-Z score of 3.40. This indicates that ADV is financially healthy and has little risk of bankruptcy at the moment.

ADV's Altman-Z score of 3.40 is amongst the best of the industry. ADV outperforms 83.33% 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's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. ADV outperforms 62.50% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.24
Debt/FCF	N/A
Altman-Z	3.4

ROIC/WACC0.3

WACC7.21%

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 75.00% of the companies in the same industry.

A Quick Ratio of 1.73 indicates that ADV should not have too much problems paying its short term obligations.

The Quick ratio of ADV (1.73) is better than 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

The earnings per share for ADV have decreased strongly by -179.69% in the last year.

The Revenue for ADV has decreased by -13.82% in the past year. This is quite bad

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

ADV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 122.40% yearly.

Based on estimates for the next years, ADV will show a decrease in Revenue. The Revenue will decrease by -5.69% on average per year.

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.

With a Price/Forward Earnings ratio of 401.98, ADV can be considered very expensive at the moment.

Compared to the rest of the industry, the Price/Forward Earnings ratio of ADV indicates a slightly more expensive valuation: ADV is more expensive than 62.50% of the companies listed in the same industry.

The average S&P500 Price/Forward Earnings ratio is at 20.86. ADV is valued rather expensively when compared to this.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	401.98

4.2 Price Multiples

ADV's Enterprise Value to EBITDA is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	13.37

4.3 Compensation for Growth

A more expensive valuation may be justified as ADV's earnings are expected to grow with 122.40% in the coming years.

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

With a Yearly Dividend Yield of 2.56%, ADV has a reasonable but not impressive dividend return.

ADV's Dividend Yield is a higher than the industry average which is at 3.65.

ADV's Dividend Yield is comparable with the S&P500 average which is at 2.44.

		Industry Rank	Sector Rank
Dividend Yield	2.56%

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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Find the best dividend stocks

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ADTRAN NETWORKING SE

FRA:ADV (5/2/2025, 7:00:00 PM)

20.3

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)05-08 2025-05-08

Inst Owners28.66%

Inst Owner ChangeN/A

Ins OwnersN/A

Ins Owner ChangeN/A

Market Cap1.06B

Analysts42.86

Price Target17.34 (-14.58%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	2.56%

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)0%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	401.98
P/S	1.72
P/FCF	N/A
P/OCF	20.28
P/B	2.78
P/tB	6.02
EV/EBITDA	13.37

EPS(TTM)-0.28

EYN/A

EPS(NY)0.05

Fwd EY0.25%

FCF(TTM)-0.29

FCFYN/A

OCF(TTM)1

OCFY4.93%

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	3.4

F-Score4

WACC7.21%

ROIC/WACC0.3

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

More info and screens