ADTRAN
Market Cap
US$798.8m
Last Updated
2021/03/08 00:37 UTC
Data Sources
Company Financials +
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
Rewards
Risk Analysis
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
| ADTN | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.9% | 1.2% | -0.4% |
| 30 Day | 2.6% | -5.1% | -2.9% |
| 90 Day | 13.0% | 5.9% | 5.0% |
| 1 Year | 116.0%110.0% | 25.2%22.0% | 39.1%36.2% |
| 3 Year | 10.5%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
2 weeks ago | Simply Wall St
Should You Use ADTRAN's (NASDAQ:ADTN) Statutory Earnings To Analyse It?1 month ago | Simply Wall St
Companies Like ADTRAN (NASDAQ:ADTN) Are In A Position To Invest In Growth2 months ago | Simply Wall St
Consider This Before Buying ADTRAN, Inc. (NASDAQ:ADTN) For The 2.5% DividendValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 15.5yrs | US$1.96m | 0.32% $ 2.6m | |
| Senior VP of Finance | 2yrs | US$647.26k | 0.030% $ 240.3k | |
| Chief Revenue Officer | 1.5yrs | US$653.51k | 0.035% $ 282.4k | |
| Senior Vice President of Research & Development | 7.17yrs | US$967.89k | 0.032% $ 257.3k | |
| Senior Vice President of Operations | 2yrs | no data | 0.0061% $ 49.0k | |
| Senior Vice President of Technology & Strategy | 0.083yr | no data | 0.0064% $ 50.8k | |
| Chief Information Officer | 3.17yrs | no data | 0.0015% $ 11.8k | |
| Vice President of Human Resources | no data | no data | no data | |
| Chief Technology Officer of The EMEA & APAC Regions | 6.42yrs | no data | no data | |
| Senior Vice President of Research & Development | 2.17yrs | no data | 0.014% $ 113.4k | |
| Vice President of Carrier Networks Sales | 25.17yrs | US$565.99k | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 15.5yrs | US$1.96m | 0.32% $ 2.6m | |
| Director Emeritus | 4.58yrs | US$180.55k | 0.13% $ 1.1m | |
| Independent Director | 3.83yrs | US$180.55k | 0.065% $ 523.0k | |
| Lead Independent Director | 5.83yrs | US$200.55k | 0.11% $ 864.7k | |
| Independent Director | 6.83yrs | US$186.80k | 0.090% $ 717.0k | |
| Independent Director | 14.08yrs | US$184.30k | 0.14% $ 1.1m | |
| Independent Director | 4.58yrs | US$183.05k | 0.073% $ 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ADTN | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Aug 1994 |
| ATN | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Aug 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/08 00:37 |
| End of Day Share Price | 2021/03/05 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.