AIM:ADT

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AdEPT Technology Group

Executive Summary

AdEPT Technology Group plc, together with its subsidiaries, provides unified communication and IT services in the United Kingdom and internationally.


Snowflake Analysis

High growth potential and slightly overvalued.

Share Price & News

How has AdEPT Technology Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ADT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.9%

ADT

2.3%

GB Telecom

2.0%

GB Market


1 Year Return

-39.5%

ADT

-35.8%

GB Telecom

-12.8%

GB Market

Return vs Industry: ADT underperformed the UK Telecom industry which returned -35.8% over the past year.

Return vs Market: ADT underperformed the UK Market which returned -12.4% over the past year.


Shareholder returns

ADTIndustryMarket
7 Day0.9%2.3%2.0%
30 Day-1.8%4.7%5.7%
90 Day-27.8%-12.0%-8.2%
1 Year-38.6%-39.5%-31.0%-35.8%-8.6%-12.8%
3 Year-32.6%-36.9%-48.8%-57.6%-6.2%-17.6%
5 Year38.2%23.5%-62.6%-71.1%12.7%-12.5%

Price Volatility Vs. Market

How volatile is AdEPT Technology Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AdEPT Technology Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADT (£2.21) is trading below our estimate of fair value (£6)

Significantly Below Fair Value: ADT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ADT is poor value based on its PE Ratio (38.5x) compared to the Telecom industry average (31.7x).

PE vs Market: ADT is poor value based on its PE Ratio (38.5x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: ADT is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: ADT is overvalued based on its PB Ratio (3.4x) compared to the GB Telecom industry average (2.7x).


Next Steps

Future Growth

How is AdEPT Technology Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

25.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADT's forecast earnings growth (25% per year) is above the savings rate (1.2%).

Earnings vs Market: ADT's earnings (25% per year) are forecast to grow faster than the UK market (20.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ADT's revenue (4.3% per year) is forecast to grow faster than the UK market (3.7% per year).

High Growth Revenue: ADT's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ADT's Return on Equity is forecast to be high in 3 years time (39.7%)


Next Steps

Past Performance

How has AdEPT Technology Group performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADT has a large one-off loss of £1.2M impacting its September 30 2019 financial results.

Growing Profit Margin: ADT's current net profit margins (2.4%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: ADT's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: ADT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ADT had negative earnings growth (-64.5%) over the past year, making it difficult to compare to the Telecom industry average (9.8%).


Return on Equity

High ROE: ADT's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is AdEPT Technology Group's financial position?


Financial Position Analysis

Short Term Liabilities: ADT's short term assets (£20.6M) exceed its short term liabilities (£20.2M).

Long Term Liabilities: ADT's short term assets (£20.6M) do not cover its long term liabilities (£49.5M).


Debt to Equity History and Analysis

Debt Level: ADT's debt to equity ratio (273.4%) is considered high.

Reducing Debt: ADT's debt to equity ratio has increased from 46.5% to 273.4% over the past 5 years.

Debt Coverage: ADT's debt is not well covered by operating cash flow (16.9%).

Interest Coverage: ADT's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

What is AdEPT Technology Group's current dividend yield, its reliability and sustainability?

5.43%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ADT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ADT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ADT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ADT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ADT is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ADT's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Phil Race

1.33yrs

Tenure

UK£452,624

Compensation

Mr. Phil Race has been Executive Director of AdEPT Technology Group plc (formerly known as AdEPT Telecom plc) since December 10, 2018 and as its Chief Executive Officer since January 1, 2019. He served as  ...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD557.51K) is above average for companies of similar size in the UK market ($USD335.86K).

Compensation vs Earnings: Insufficient data to compare Phil's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Phil Race
CEO & Executive Director1.33yrsUK£452.62k0.042% £23.4k
John Swaite
Finance Director & Executive Director11.33yrsUK£212.84k0.31% £173.5k
Richard Burbage
Unified Communications Director & Executive Director3.83yrsUK£185.43kno data
Paul Lovett
COO & Directorno datano datano data

2.6yrs

Average Tenure

48yo

Average Age

Experienced Management: ADT's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Phil Race
CEO & Executive Director1.33yrsUK£452.62k0.042% £23.4k
John Swaite
Finance Director & Executive Director11.33yrsUK£212.84k0.31% £173.5k
Richard Burbage
Unified Communications Director & Executive Director3.83yrsUK£185.43kno data
Paul Lovett
COO & Directorno datano datano data
Ian Fishwick
Chairman1.33yrsUK£319.19k2.83% £1.6m
Roger Wilson
Deputy Chairman1.33yrsUK£70.26k1.75% £968.6k
Richard Bligh
Non-Executive Director0.83yrno datano data
Craig Wilson
Non Executive Director0.58yrno datano data

1.3yrs

Average Tenure

49yo

Average Age

Experienced Board: ADT's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.6%.


Top Shareholders

Company Information

AdEPT Technology Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AdEPT Technology Group plc
  • Ticker: ADT
  • Exchange: AIM
  • Founded: 2003
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: UK£55.316m
  • Shares outstanding: 25.03m
  • Website: https://www.adept.co.uk

Number of Employees


Location

  • AdEPT Technology Group plc
  • 77 Mount Ephraim
  • Tunbridge Wells
  • Kent
  • TN4 8BS
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADTAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPFeb 2006

Biography

AdEPT Technology Group plc, together with its subsidiaries, provides unified communication and IT services in the United Kingdom and internationally. It operates through two segments, Fixed Line Services and Managed Services. The company offers call and line rental, data connectivity, IP telephony, support, and maintenance services, as well as voice and cloud services. It also provides IT, equipment installation, managed, Wi-Fi, and IT and communications hardware products, as well as cyber security, business continuity, and professional products and services. In addition, the company designs, creates, and supports ICT solutions to schools and others in the education sector. The company was formerly known as Adept Telecom Plc and changed its name to AdEPT Technology Group plc in September 2019. AdEPT Technology Group plc was founded in 2003 and is headquartered in Tunbridge Wells, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 21:35
End of Day Share Price2020/05/29 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.