NasdaqGS:ADTN

Stock Analysis Report

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.


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

ADTNIndustryMarket
7 Day14.1%5.8%2.4%
30 Day23.9%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

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

NamePositionTenureCompensationOwnership
Thomas Stanton
Chairman & CEO14.58yrsUS$2.00m0.25% $1.0m
Michael Foliano
Senior VP of Finance1.08yrsUS$606.95k0.014% $60.1k
James Wilson
Chief Revenue Officer13.67yrsUS$637.95k0.016% $67.6k
Eduard Scheiterer
Senior Vice President of Research & Development5.25yrsUS$1.01m0.012% $51.8k
Ronald Centis
Senior Vice President of Global Operations1.08yrsno data0.00073% $3.1k
Raymond Harris
Chief Information Officer2.25yrsno data0.023% $95.8k
Gary Bolton
Vice President of Global Marketing11.17yrsno datano data
Joia Thompson
Vice President of Human Resourcesno datano datano data
Ronan Kelly
Chief Technology Officer of The EMEA & APAC Regions5.5yrsno datano data
Daniel Whalen
Chief Product Officer0.58yrno data0.062% $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

NamePositionTenureCompensationOwnership
Thomas Stanton
Chairman & CEO14.58yrsUS$2.00m0.25% $1.0m
Roy Nichols
Director Emeritus3.67yrsUS$180.00k0.10% $422.4k
Gregory McCray
Independent Director2.92yrsUS$180.00k0.033% $139.3k
H. Huss
Lead Independent Director4.92yrsUS$195.00k0.076% $322.0k
Kathryn Walker
Independent Director5.92yrsUS$185.00k0.058% $243.7k
Balan Nair
Independent Director13.17yrsUS$187.50k0.10% $435.9k
Anthony Melone
Independent Director4.17yrsUS$180.00k0.041% $172.2k
Jacqueline Rice
Independent Director3.67yrsUS$180.00k0.041% $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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADTNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1994
ATNDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1994
ATNBRSE (Berne Stock Exchange)YesCommon StockCHCHFAug 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 02:42
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.