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ADT

ADTNYSE:ADT Stock Report

Market Cap

US$7.1b

7D

0%

1Y

15.6%

Updated

21 Oct, 2021

Data

Company Financials +
ADT fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance0/6
Financial Health2/6
Dividends2/6

ADT Overview

ADT Inc. provides security, automation, and smart home solutions to consumer and business customers in the United States.

ADT Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ADT
Historical stock prices
Current Share PriceUS$8.54
52 Week HighUS$6.48
52 Week LowUS$11.78
Beta2.19
1 Month Change7.69%
3 Month Change-18.20%
1 Year Change15.56%
3 Year Change14.02%
5 Year Changen/a
Change since IPO-31.07%

Recent News & Updates

Oct 08
There Are Reasons To Feel Uneasy About ADT's (NYSE:ADT) Returns On Capital

There Are Reasons To Feel Uneasy About ADT's (NYSE:ADT) Returns On Capital

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Sep 28

ADT: Shares Still Offer Upside

ADT has fared well over the past several months, with shares rising and some cash flow figures improving. The company does have some problems, like with profitability and high leverage. But, on the whole, the company looks to be trading at a low price and valuable relationships should help it to continue growing.

Aug 22
ADT's (NYSE:ADT) Dividend Will Be US$0.035

ADT's (NYSE:ADT) Dividend Will Be US$0.035

The board of ADT Inc. ( NYSE:ADT ) has announced that it will pay a dividend on the 5th of October, with investors...

Aug 08
ADT (NYSE:ADT) Has Affirmed Its Dividend Of US$0.035

ADT (NYSE:ADT) Has Affirmed Its Dividend Of US$0.035

The board of ADT Inc. ( NYSE:ADT ) has announced that it will pay a dividend of US$0.035 per share on the 5th of...

Shareholder Returns

ADTUS Commercial ServicesUS Market
7D0%2.1%2.6%
1Y15.6%29.4%31.1%

Return vs Industry: ADT underperformed the US Commercial Services industry which returned 28.8% over the past year.

Return vs Market: ADT underperformed the US Market which returned 31.5% over the past year.

Price Volatility

Is ADT's price volatile compared to industry and market?
ADT volatility
ADT Beta2.19
Industry Beta1.03
Market Beta1

Stable Share Price: ADT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ADT's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
187420,500Jim DeVrieshttps://www.adt.com

ADT Inc. provides security, automation, and smart home solutions to consumer and business customers in the United States. It provides a range of fire detection, fire suppression, video surveillance, and access control systems to residential, commercial, and multi-site customers. The company primarily offers monitored security and automation solutions, including the installation and monitoring of security and premises automation systems designed to detect intrusion, control access, sense movement, smoke, fire, carbon monoxide, flooding, temperature, and other environmental conditions and hazards; and address personal emergencies, such as injuries, medical emergencies, or incapacitation.

ADT Fundamentals Summary

How do ADT's earnings and revenue compare to its market cap?
ADT fundamental statistics
Market CapUS$7.10b
Earnings (TTM)-US$398.90m
Revenue (TTM)US$5.22b

1.4x

P/S Ratio

-17.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADT income statement (TTM)
RevenueUS$5.22b
Cost of RevenueUS$1.49b
Gross ProfitUS$3.73b
ExpensesUS$4.13b
Earnings-US$398.90m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.48
Gross Margin71.38%
Net Profit Margin-7.64%
Debt/Equity Ratio339.2%

How did ADT perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

-28%

Payout Ratio

Valuation

Is ADT undervalued compared to its fair value and its price relative to the market?

22.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADT ($8.54) is trading below our estimate of fair value ($11.06)

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


Price To Earnings Ratio

PE vs Industry: ADT is unprofitable, so we can't compare its PE Ratio to the US Commercial Services industry average.

PE vs Market: ADT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ADT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ADT is good value based on its PB Ratio (2.5x) compared to the US Commercial Services industry average (2.7x).


Future Growth

How is ADT forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

71.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ADT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ADT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ADT's revenue (3.8% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: ADT's revenue (3.8% 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 (25%)


Past Performance

How has ADT performed over the past 5 years?

-19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADT is currently unprofitable.

Growing Profit Margin: ADT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ADT is unprofitable, and losses have increased over the past 5 years at a rate of 19.7% per year.

Accelerating Growth: Unable to compare ADT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ADT is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (33.8%).


Return on Equity

High ROE: ADT has a negative Return on Equity (-13.97%), as it is currently unprofitable.


Financial Health

How is ADT's financial position?


Financial Position Analysis

Short Term Liabilities: ADT's short term assets ($948.6M) do not cover its short term liabilities ($1.4B).

Long Term Liabilities: ADT's short term assets ($948.6M) do not cover its long term liabilities ($11.8B).


Debt to Equity History and Analysis

Debt Level: ADT's debt to equity ratio (339.2%) is considered high.

Reducing Debt: ADT's debt to equity ratio has increased from 253.6% to 339.2% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable ADT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ADT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 31.4% per year.


Dividend

What is ADT current dividend yield, its reliability and sustainability?

1.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADT's dividend (1.64%) is higher than the bottom 25% of dividend payers in the US market (1.28%).

High Dividend: ADT's dividend (1.64%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ADT has been paying a dividend for less than 10 years.

Growing Dividend: ADT has only been paying a dividend for 4 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: ADT is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: ADT's dividends in 3 years are forecast to be well covered by earnings (31.5% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Jim DeVries (58 yo)

2.83yrs

Tenure

US$14,142,293

Compensation

Mr. James D. DeVries, also known as Jim, has been the President at ASG Intermediate Holding Corp. since September 2017. Mr. DeVries has been Chief Executive Officer of ADT Inc. since December 1, 2018 and P...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD14.14M) is above average for companies of similar size in the US market ($USD6.29M).

Compensation vs Earnings: Jim's compensation has increased whilst the company is unprofitable.


Leadership Team

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


Board Members

Experienced Board: ADT's board of directors are considered experienced (5.8 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.2%.


Top Shareholders

Company Information

ADT Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: ADT Inc.
  • Ticker: ADT
  • Exchange: NYSE
  • Founded: 1874
  • Industry: Security and Alarm Services
  • Sector: Commercial Services
  • Market Cap: US$7.097b
  • Shares outstanding: 831.07m
  • Website: https://www.adt.com

Number of Employees


Location

  • ADT Inc.
  • 1501 Yamato Road
  • Boca Raton
  • Florida
  • 33431
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 22:50
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.