| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 5/6 |
| Past Performance | 0/6 |
| Financial Health | 2/6 |
| Dividends | 1/6 |
ADT Stock Overview
ADT Inc. provides security, automation, and smart home solutions to consumer and business customers in the United States.
ADT Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$6.59 |
| 52 Week High | US$11.18 |
| 52 Week Low | US$6.05 |
| Beta | 1.99 |
| 1 Month Change | -12.83% |
| 3 Month Change | -16.05% |
| 1 Year Change | -40.25% |
| 3 Year Change | 6.63% |
| 5 Year Change | n/a |
| Change since IPO | -46.81% |
Recent News & Updates
ADT (NYSE:ADT) Has Re-Affirmed Its Dividend Of US$0.035
The board of ADT Inc. ( NYSE:ADT ) has announced that it will pay a dividend on the 5th of July, with investors...
ADT (NYSE:ADT) Is Due To Pay A 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 July...
ADT (NYSE:ADT) Has Re-Affirmed Its Dividend Of US$0.035
ADT Inc. ( NYSE:ADT ) will pay a dividend of US$0.035 on the 5th of July. Based on this payment, the dividend yield...
Shareholder Returns
| ADT | US Consumer Services | US Market | |
|---|---|---|---|
| 7D | 4.6% | 3.5% | 6.3% |
| 1Y | -40.3% | -49.0% | -18.8% |
Return vs Industry: ADT exceeded the US Consumer Services industry which returned -48.8% over the past year.
Return vs Market: ADT underperformed the US Market which returned -18.4% over the past year.
Price Volatility
| ADT volatility | |
|---|---|
| ADT Average Weekly Movement | 6.4% |
| Consumer Services Industry Average Movement | 9.5% |
| Market Average Movement | 8.1% |
| 10% most volatile stocks in US Market | 16.7% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: ADT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: ADT's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1874 | 25,000 | Jim DeVries | https://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
| ADT fundamental statistics | |
|---|---|
| Market Cap | US$5.97b |
| Earnings (TTM) | -US$241.28m |
| Revenue (TTM) | US$5.55b |
1.1x
P/S Ratio-24.8x
P/E RatioIs ADT overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ADT income statement (TTM) | |
|---|---|
| Revenue | US$5.55b |
| Cost of Revenue | US$1.68b |
| Gross Profit | US$3.87b |
| Other Expenses | US$4.11b |
| Earnings | -US$241.28m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.27 |
| Gross Margin | 69.74% |
| Net Profit Margin | -4.35% |
| Debt/Equity Ratio | 298.3% |
How did ADT perform over the long term?
See historical performance and comparisonDividends
2.1%
Current Dividend Yield-49%
Payout RatioValuation
Is ADT undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation Score 5/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for ADT?
Other financial metrics that can be useful for relative valuation.
| What is ADT's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$5.97b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.9x |
| Enterprise Value/EBITDA | 7.8x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does ADT's PS Ratio compare to its peers?
| ADT PS Ratio vs Peers |
|---|
| Company | PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 2.9x | ||
TMX Terminix Global Holdings | 2.5x | 5.1% | US$5.1b |
HRB H&R Block | 2.2x | 5.5% | US$5.7b |
MCW Mister Car Wash | 4.3x | 9.6% | US$3.4b |
SCI Service Corporation International | 2.6x | 0.6% | US$10.9b |
ADT ADT | 1.1x | 9.1% | US$6.0b |
Price-To-Sales vs Peers: ADT is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (2.9x).
Price to Earnings Ratio vs Industry
How does ADT's PE Ratio compare vs other companies in the US Consumer Services Industry?
Price-To-Sales vs Industry: ADT is good value based on its Price-To-Sales Ratio (1.1x) compared to the US Consumer Services industry average (1.6x)
Price to Sales Ratio vs Fair Ratio
What is ADT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 1.1x |
| Fair PS Ratio | 3.4x |
Price-To-Sales vs Fair Ratio: ADT is good value based on its Price-To-Sales Ratio (1.1x) compared to the estimated Fair Price-To-Sales Ratio (3.4x).
Share Price vs Fair Value
What is the Fair Price of ADT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: ADT ($6.59) is trading below our estimate of fair value ($15.02)
Significantly Below Fair Value: ADT is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate ADT's PEG Ratio to determine if it is good value.
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Future Growth
How is ADT forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Future Growth Score
5/6Future Growth Score 5/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
108.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ADT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
Earnings vs Market: ADT is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: ADT is expected to become profitable in the next 3 years.
Revenue vs Market: ADT's revenue (9.1% per year) is forecast to grow faster than the US market (8.4% per year).
High Growth Revenue: ADT's revenue (9.1% 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 (27.6%)
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Past Performance
How has ADT performed over the past 5 years?
Past Performance Score
0/6Past Performance Score 0/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-17.0%
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 17% 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 Consumer Services industry (-10.4%).
Return on Equity
High ROE: ADT has a negative Return on Equity (-7.36%), as it is currently unprofitable.
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Financial Health
How is ADT's financial position?
Financial Health Score
2/6Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: ADT's short term assets ($1.1B) do not cover its short term liabilities ($1.6B).
Long Term Liabilities: ADT's short term assets ($1.1B) do not cover its long term liabilities ($12.2B).
Debt to Equity History and Analysis
Debt Level: ADT's net debt to equity ratio (297.8%) is considered high.
Reducing Debt: ADT's debt to equity ratio has increased from 266.2% to 298.3% 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 12.4% per year.
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Dividend
What is ADT current dividend yield, its reliability and sustainability?
Dividend Score
2/6Dividend Score 2/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
2.12%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ADT's dividend (2.12%) is higher than the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: ADT's dividend (2.12%) is low compared to the top 25% of dividend payers in the US market (4.23%).
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.
Earnings Payout to Shareholders
Earnings Coverage: ADT is paying a dividend but the company is unprofitable.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (321.2%), ADT's dividend payments are not well covered by cash flows.
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Management
How experienced are the management team and are they aligned to shareholders interests?
1.1yrs
Average management tenure
CEO
Jim DeVries (58 yo)
3.5yrs
Tenure
US$7,479,792
Compensation
Mr. James D. DeVries, also known as Jim, has been the President at ASG Intermediate Holding Corp. since September 2017. Mr. DeVries has been Chief Executive Officer of ADT Inc. since December 1, 2018 and P...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD7.48M) is about average for companies of similar size in the US market ($USD8.23M).
Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: ADT's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Members
Experienced Board: ADT's board of directors are considered experienced (5.4 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.
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: Specialized Consumer Services
- Sector: Consumer Services
- Implied Market Cap: US$5.973b
- Shares outstanding: 906.32m
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/27 00:00 |
| End of Day Share Price | 2022/06/27 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.