ADTRAN
Market Cap
US$421.2m
Last Updated
2020/04/08 02:42 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.
Risk Analysis
Dividend of 4.12% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Mediocre balance sheet unattractive dividend payer.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
14.1%
ADTN
5.8%
US Communications
2.4%
US Market
1 Year Return
-38.7%
ADTN
-24.9%
US Communications
-10.0%
US Market
Return vs Industry: ADTN underperformed the US Communications industry which returned -29.4% over the past year.
Return vs Market: ADTN underperformed the US Market which returned -15.9% over the past year.
Shareholder returns
| ADTN | Industry | Market | |
|---|---|---|---|
| 7 Day | 14.1% | 5.8% | 2.4% |
| 30 Day | 23.9% | 2.7% | -11.0% |
| 90 Day | -10.5% | -13.3% | -19.4% |
| 1 Year | -36.6%-38.7% | -23.2%-24.9% | -8.1%-10.0% |
| 3 Year | -51.8%-55.3% | 19.2%11.6% | 17.3%9.6% |
| 5 Year | -48.3%-54.0% | 46.6%30.1% | 36.1%21.1% |
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
1 week ago | Simply Wall St
Does The ADTRAN, Inc. (NASDAQ:ADTN) Share Price Tend To Follow The Market?3 weeks ago | Simply Wall St
Is Now The Time To Look At Buying ADTRAN, Inc. (NASDAQ:ADTN)?1 month ago | Simply Wall St
Health Check: How Prudently Does ADTRAN (NASDAQ:ADTN) Use Debt?Valuation
Is ADTRAN undervalued compared to its fair value and its price relative to the market?
1.11x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: ADTN ($8.73) is trading above our estimate of fair value ($4.66)
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 PE Ratio to the Communications industry average.
PE vs Market: ADTN 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 ADTN's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: ADTN is good value based on its PB Ratio (1.1x) compared to the US Communications industry average (1.3x).
Next Steps
Future Growth
How is ADTRAN forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
109.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ADTN is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: ADTN is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: ADTN is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: ADTN's revenue (2.4% per year) is forecast to grow slower than the US market (7% per year).
High Growth Revenue: ADTN's revenue (2.4% 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?
-53.4%
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 -53.4% 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 (-13.2%).
Return on Equity
High ROE: ADTN has a negative Return on Equity (-13.93%), as it is currently unprofitable.
Next Steps
Financial Health
How is ADTRAN's financial position?
Financial Position Analysis
Short Term Liabilities: ADTN's short term assets ($320.3M) exceed its short term liabilities ($112.7M).
Long Term Liabilities: ADTN's short term assets ($320.3M) exceed its long term liabilities ($52.0M).
Debt to Equity History and Analysis
Debt Level: ADTN's debt to equity ratio (6.5%) is considered satisfactory.
Reducing Debt: ADTN's debt to equity ratio has increased from 5.2% to 6.5% over the past 5 years.
Debt Coverage: ADTN's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if ADTN's interest payments on its debt are well covered by EBIT.
Balance Sheet
Next Steps
Dividend
What is ADTRAN's current dividend yield, its reliability and sustainability?
4.11%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ADTN's dividend (4.12%) is higher than the bottom 25% of dividend payers in the US market (2.07%).
High Dividend: ADTN's dividend (4.12%) is low compared to the top 25% of dividend payers in the US market (5.82%).
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: ADTN is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: ADTN is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.3yrs
Average management tenure
CEO
Tom Stanton (54yo)
14.58s
Tenure
US$1,998,293
Compensation
Mr. Thomas R. Stanton, also known as Tom, has been the Chief Executive Officer of Adtran Inc. since September 10, 2005. Mr. Stanton serves as Director of Birmingham Branch of Federal Reserve Bank of Atlant ...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD2.00M) is about average for companies of similar size in the US market ($USD2.30M).
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 | 14.58yrs | US$2.00m | 0.25% $1.0m | |
| Senior VP of Finance | 1.08yrs | US$606.95k | 0.014% $60.1k | |
| Chief Revenue Officer | 13.67yrs | US$637.95k | 0.016% $67.6k | |
| Senior Vice President of Research & Development | 5.25yrs | US$1.01m | 0.012% $51.8k | |
| Senior Vice President of Global Operations | 1.08yrs | no data | 0.00073% $3.1k | |
| Chief Information Officer | 2.25yrs | no data | 0.023% $95.8k | |
| Vice President of Global Marketing | 11.17yrs | no data | no data | |
| Vice President of Human Resources | no data | no data | no data | |
| Chief Technology Officer of The EMEA & APAC Regions | 5.5yrs | no data | no data | |
| Chief Product Officer | 0.58yr | no data | 0.062% $260.2k |
5.3yrs
Average Tenure
55yo
Average Age
Experienced Management: ADTN's management team is seasoned and experienced (5.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 14.58yrs | US$2.00m | 0.25% $1.0m | |
| Director Emeritus | 3.67yrs | US$180.00k | 0.10% $422.4k | |
| Independent Director | 2.92yrs | US$180.00k | 0.033% $139.3k | |
| Lead Independent Director | 4.92yrs | US$195.00k | 0.076% $322.0k | |
| Independent Director | 5.92yrs | US$185.00k | 0.058% $243.7k | |
| Independent Director | 13.17yrs | US$187.50k | 0.10% $435.9k | |
| Independent Director | 4.17yrs | US$180.00k | 0.041% $172.2k | |
| Independent Director | 3.67yrs | US$180.00k | 0.041% $172.2k |
4.5yrs
Average Tenure
57yo
Average Age
Experienced Board: ADTN's board of directors are considered experienced (4.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ADTN 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.
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$421.215m
- Shares outstanding: 48.08m
- Website: https://www.adtran.com
Number of Employees
Location
- ADTRAN, Inc.
- 901 Explorer Boulevard
- Huntsville
- Alabama
- 35806-2807
- 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 |
| ATN | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | 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 operates through Network Solutions and Services & Support segments. It offers network management and subscriber services control and orchestration software; SDN-controlled programmable network elements; fiber to the premises and fiber to the node (FTTN) multi-service access nodes (MSAN); fiber aggregation and FTTN MSAN; fiber to the distribution point optical network units; optical line terminals; optical networking edge aggregation; cabinet and outside-plant enclosures and services; pluggable optical transceivers, cables, and other miscellaneous materials; and other products and services. The company also provides cloud-based SaaS management platforms; SaaS platforms for subscriber and network analytics collection; SmartOS software licensing for residential gateway and Wi-Fi devices; broadband customer premise solutions and point-to-point Ethernet optical network terminals; radio frequency over glass micro nodes; residential gateway products and accessories; Wi-Fi access points, and associated powering and switching infrastructure; enterprise session border controller device platforms and software; carrier Ethernet services termination devices; and voice over Internet protocol network management and professional service. In addition, it offers planning, engineering, program management, maintenance, installation, and commissioning services. Further, the company offers time division multiplexed and asynchronous transfer mode based aggregation systems and customer devices; and high-bit-rate digital subscriber line, asymmetric digital subscriber line, and other technologies. ADTRAN, Inc. was founded in 1985 and is headquartered in Huntsville, Alabama.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/08 02:42 |
| End of Day Share Price | 2020/04/07 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.