NasdaqGS:ADTN

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Executive Summary

ADTRAN, Inc. provides networking and communications equipment for service providers, cable/multiple system operators, and distributed enterprises in the United States and internationally. More Details


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has ADTRAN's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ADTN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ADTN's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-1.9%

ADTN

1.2%

US Communications

-0.4%

US Market


1 Year Return

110.0%

ADTN

22.0%

US Communications

36.2%

US Market

Return vs Industry: ADTN exceeded the US Communications industry which returned 22% over the past year.

Return vs Market: ADTN exceeded the US Market which returned 36.2% over the past year.


Shareholder returns

ADTNIndustryMarket
7 Day-1.9%1.2%-0.4%
30 Day2.6%-5.1%-2.9%
90 Day13.0%5.9%5.0%
1 Year116.0%110.0%25.2%22.0%39.1%36.2%
3 Year10.5%1.4%6.8%-0.1%48.4%39.0%
5 Year-2.8%-14.1%83.4%62.8%116.5%92.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

333.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ADTN ($16.53) is trading above our estimate of fair value ($2.91)

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


Price To Earnings Ratio

PE vs Industry: ADTN is poor value based on its PE Ratio (333.5x) compared to the US Communications industry average (33.3x).

PE vs Market: ADTN is poor value based on its PE Ratio (333.5x) compared to the US market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: ADTN is poor value based on its PEG Ratio (6.2x)


Price to Book Ratio

PB vs Industry: ADTN is good value based on its PB Ratio (2.1x) compared to the US Communications industry average (2.7x).


Next Steps

Future Growth

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

53.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADTN's forecast earnings growth (53.8% per year) is above the savings rate (2%).

Earnings vs Market: ADTN's earnings (53.8% per year) are forecast to grow faster than the US market (19.2% per year).

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

Revenue vs Market: ADTN's revenue (7.4% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: ADTN's revenue (7.4% 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


Next Steps

Past Performance

How has ADTRAN performed over the past 5 years?

-59.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADTN has a large one-off loss of $1.4M impacting its December 31 2020 financial results.

Growing Profit Margin: ADTN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ADTN's earnings have declined by 59.6% per year over the past 5 years.

Accelerating Growth: ADTN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ADTN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (10.8%).


Return on Equity

High ROE: ADTN's Return on Equity (0.6%) is considered low.


Next Steps

Financial Health

How is ADTRAN's financial position?


Financial Position Analysis

Short Term Liabilities: ADTN's short term assets ($317.4M) exceed its short term liabilities ($94.2M).

Long Term Liabilities: ADTN's short term assets ($317.4M) exceed its long term liabilities ($58.5M).


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 5.8%.

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


Next Steps

Dividend

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

2.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADTN's dividend (2.18%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: ADTN's dividend (2.18%) is low compared to the top 25% of dividend payers in the US market (3.64%).


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.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (726.6%), ADTN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ADTN's dividends in 3 years are forecast to be covered by earnings (65.5% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Tom Stanton (55 yo)

15.5yrs

Tenure

US$1,962,156

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 ($USD1.96M) is about average for companies of similar size in the US market ($USD2.21M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Stanton
Chairman & CEO15.5yrsUS$1.96m0.32%
$ 2.6m
Michael Foliano
Senior VP of Finance2yrsUS$647.26k0.030%
$ 240.3k
James Wilson
Chief Revenue Officer1.5yrsUS$653.51k0.035%
$ 282.4k
Eduard Scheiterer
Senior Vice President of Research & Development7.17yrsUS$967.89k0.032%
$ 257.3k
Ronald Centis
Senior Vice President of Operations2yrsno data0.0061%
$ 49.0k
Robert Conger
Senior Vice President of Technology & Strategy0.083yrno data0.0064%
$ 50.8k
Raymond Harris
Chief Information Officer3.17yrsno data0.0015%
$ 11.8k
Joia Thompson
Vice President of Human Resourcesno datano datano data
Ronan Kelly
Chief Technology Officer of The EMEA & APAC Regions6.42yrsno datano data
Marc Kimpe
Senior Vice President of Research & Development2.17yrsno data0.014%
$ 113.4k
Robert Fredrickson
Vice President of Carrier Networks Sales25.17yrsUS$565.99kno data

2.7yrs

Average Tenure

56.5yo

Average Age

Experienced Management: ADTN's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Stanton
Chairman & CEO15.5yrsUS$1.96m0.32%
$ 2.6m
Roy Nichols
Director Emeritus4.58yrsUS$180.55k0.13%
$ 1.1m
Gregory McCray
Independent Director3.83yrsUS$180.55k0.065%
$ 523.0k
H. Huss
Lead Independent Director5.83yrsUS$200.55k0.11%
$ 864.7k
Kathryn Walker
Independent Director6.83yrsUS$186.80k0.090%
$ 717.0k
Balan Nair
Independent Director14.08yrsUS$184.30k0.14%
$ 1.1m
Jacqueline Rice
Independent Director4.58yrsUS$183.05k0.073%
$ 582.0k

5.8yrs

Average Tenure

57yo

Average Age

Experienced Board: ADTN'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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ADTRAN, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ADTRAN, Inc.
  • Ticker: ADTN
  • Exchange: NasdaqGS
  • Founded: 1985
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$798.778m
  • Shares outstanding: 48.34m
  • Website: https://www.adtran.com

Number of Employees


Location

  • ADTRAN, Inc.
  • 901 Explorer Boulevard
  • Huntsville
  • Alabama
  • 35806
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADTNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1994
ATNDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1994

Biography

ADTRAN, Inc. provides networking and communications equipment for service providers, cable/multiple system operators, and distributed enterprises in the United States and internationally. The company opera...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/08 00:37
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
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.