ADTRAN (NasdaqGS:ADTN) - Share price, News & Analysis

ADTN fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	4/6
Past Performance	0/6
Financial Health	6/6
Dividends	2/6

ADTN Stock Overview

ADTRAN, Inc. provides networking and communications platforms, software, and services in the United States, Germany, the United Kingdom, Mexico, and internationally.

Rewards

Earnings are forecast to grow 101.37% per year

Risk Analysis

Dividend of 1.92% is not well covered by earnings or forecast to be in the next 3 years

ADTRAN Competitors

Motorola Solutions

NYSE:MSI

US$35.7b

Ubiquiti

NYSE:UI

US$15.3b

Juniper Networks

NYSE:JNPR

US$9.7b

Ciena

NYSE:CIEN

US$7.5b

Price History & Performance

Summary of all time highs, changes and price drops for ADTRAN
Historical stock prices
Current Share Price	US$18.77
52 Week High	US$24.76
52 Week Low	US$16.30
Beta	1.27
1 Month Change	3.47%
3 Month Change	-7.58%
1 Year Change	-6.62%
3 Year Change	19.25%
5 Year Change	-2.49%
Change since IPO	230.02%

Recent News & Updates

May 08

ADTRAN's (NASDAQ:ADTN) Dividend Will Be US$0.09

ADTRAN, Inc.'s ( NASDAQ:ADTN ) investors are due to receive a payment of US$0.09 per share on 2nd of June. This payment...

Shareholder Returns

	ADTN	US Communications	US Market
7D	4.6%	-6.6%	1.0%
1Y	-6.6%	-13.0%	-15.1%

Return vs Industry: ADTN exceeded the US Communications industry which returned -13.9% over the past year.

Return vs Market: ADTN exceeded the US Market which returned -13.2% over the past year.

Price Volatility

Is ADTN's price volatile compared to industry and market?
ADTN volatility
ADTN Average Weekly Movement	5.2%
Communications Industry Average Movement	7.3%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

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

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

About the Company

Founded	Employees	CEO	Website
1985	1,335	Tom Stanton	https://www.adtran.com

ADTRAN, Inc. provides networking and communications platforms, software, and services in the United States, Germany, the United Kingdom, Mexico, and internationally. It operates through two segments, Network Solutions, and Services & Support. The company offers fiber access and fiber to the node platforms; transceivers, cables, and other miscellaneous materials; passive optical network optical line terminals; fiber to the distribution point Gfast distribution point units; cabinet and outside plant enclosures and services; packet optical transports; fixed wireless access platforms; and network management and subscriber services, and control and orchestration software.

ADTRAN Fundamentals Summary

How do ADTRAN's earnings and revenue compare to its market cap?
ADTN fundamental statistics
Market Cap	US$921.99m
Earnings (TTM)	-US$10.66m
Revenue (TTM)	US$589.99m

1.6x

P/S Ratio

-86.5x

P/E Ratio

Is ADTN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADTN income statement (TTM)
Revenue	US$589.99m
Cost of Revenue	US$370.90m
Gross Profit	US$219.09m
Other Expenses	US$229.75m
Earnings	-US$10.66m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.22
Gross Margin	37.14%
Net Profit Margin	-1.81%
Debt/Equity Ratio	0.0%

How did ADTN perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

-165%

Payout Ratio

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

2.62x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: ADTN ($18.77) is trading above our estimate of fair value ($3.88)

Significantly Below Fair Value: ADTN is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: ADTN is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US Communications industry average.

PE vs Market: ADTN is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US market.

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: ADTN is overvalued based on its Price-To-Book Ratio (2.6x) compared to the US Communications industry average (1.6x).

Future Growth

How is ADTRAN forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

101.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADTN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: ADTN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ADTN's is expected to become profitable in the next 3 years.

Revenue vs Market: ADTN's revenue (13.1% per year) is forecast to grow faster than the US market (7.7% per year).

High Growth Revenue: ADTN's revenue (13.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if ADTN's Return on Equity is forecast to be high in 3 years time

Past Performance

How has ADTRAN performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-30.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ADTN is currently unprofitable.

Growing Profit Margin: ADTN is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: ADTN is unprofitable, and losses have increased over the past 5 years at a rate of 30.3% per year.

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

Earnings vs Industry: ADTN is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (38.2%).

Return on Equity

High ROE: ADTN has a negative Return on Equity (-3.03%), as it is currently unprofitable.

Financial Health

How is ADTRAN's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ADTN's short term assets ($402.1M) exceed its short term liabilities ($182.8M).

Long Term Liabilities: ADTN's short term assets ($402.1M) exceed its long term liabilities ($54.0M).

Debt to Equity History and Analysis

Debt Level: ADTN is debt free.

Reducing Debt: ADTN has no debt compared to 5 years ago when its debt to equity ratio was 5.6%.

Debt Coverage: ADTN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ADTN has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.92%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ADTN's dividend (1.92%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: ADTN's dividend (1.92%) is low compared to the top 25% of dividend payers in the US market (4.06%).

Stability and Growth of Payments

Stable Dividend: ADTN's dividends per share have been stable in the past 10 years.

Growing Dividend: ADTN's dividend payments have not increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: ADTN is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: ADTN is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure

CEO

Tom Stanton (56 yo)

16.67yrs

Tenure

US$4,515,356

Compensation

Mr. Thomas R. Stanton, also known as Tom, has been the Chief Executive Officer of ADTRAN Inc. since September 10, 2005. Mr. Stanton serves as Director of Birmingham Branch of Federal Reserve Bank of Atlant...

CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD4.52M) is about average for companies of similar size in the US market ($USD3.95M).

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

Leadership Team

Experienced Management: ADTN's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: ADTN's board of directors are seasoned and experienced ( 11.6 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31