company background image
ADTN

ADTRANNasdaqGS:ADTN Stock Report

Market Cap

US$978.0m

7D

-2.5%

1Y

37.0%

Updated

03 Dec, 2021

Data

Company Financials +
ADTN fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance1/6
Financial Health6/6
Dividends3/6

ADTN Stock Overview

ADTRAN, Inc. provides networking and communications platforms and services for service providers, cable/multiple system operators, small- to medium-sized business, and distributed enterprises in the United States, Germany, Mexico, and internationally.

ADTRAN Competitors

Motorola Solutions

NYSE:MSI

US$41.9b

Juniper Networks

NYSE:JNPR

US$10.2b

AudioCodes

NasdaqGS:AUDC

US$1.1b

Inseego

NasdaqGS:INSG

US$649.7m

Price History & Performance

Summary of all time highs, changes and price drops for ADTRAN
Historical stock prices
Current Share PriceUS$20.09
52 Week HighUS$24.76
52 Week LowUS$13.70
Beta1.35
1 Month Change-0.89%
3 Month Change-2.24%
1 Year Change37.04%
3 Year Change67.42%
5 Year Change-10.31%
Change since IPO253.23%

Recent News & Updates

Oct 20
ADTRAN (NASDAQ:ADTN) Will Be Looking To Turn Around Its Returns

ADTRAN (NASDAQ:ADTN) Will Be Looking To Turn Around Its Returns

What financial metrics can indicate to us that a company is maturing or even in decline? More often than not, we'll see...

Sep 17

Adtran: Compelling ADVA Merger Presents Buying Opportunity

ADTRAN announces an all-stock merger with ADVA Optical Networking. The merger makes good strategic sense as it adds scale and distribution reach while also positioning the combined entity to capture market share post-Huawei phase-out. With the transaction also set to prove meaningfully accretive over time, I would accumulate on the post-announcement dip.

Shareholder Returns

ADTNUS CommunicationsUS Market
7D-2.5%1.4%-2.7%
1Y37.0%29.1%16.6%

Return vs Industry: ADTN exceeded the US Communications industry which returned 30.6% over the past year.

Return vs Market: ADTN exceeded the US Market which returned 19.4% over the past year.

Price Volatility

Is ADTN's price volatile compared to industry and market?
ADTN volatility
ADTN Average Weekly Movement4.5%
Communications Industry Average Movement6.4%
Market Average Movement6.1%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
19851,405Tom Stantonhttps://www.adtran.com

ADTRAN, Inc. provides networking and communications platforms and services for service providers, cable/multiple system operators, small- to medium-sized business, and distributed enterprises in the United States, Germany, Mexico, and internationally. The company operates through two segments, Network Solutions, and Services & Support. It offers fiber to the premises and fiber to the node (FTTN) multi-service access nodes (MSAN); fiber aggregation and FTTN MSAN; network management and subscriber services control and orchestration software; software defined networking -controlled programmable network elements; fiber to the distribution point units; optical line terminals and transport solutions; IP-based digital subscriber line access multiplexers; cabinet and outside plant enclosures and services; transceivers, cables, and other miscellaneous materials; and other products, software, and services.

ADTRAN Fundamentals Summary

How do ADTRAN's earnings and revenue compare to its market cap?
ADTN fundamental statistics
Market CapUS$977.98m
Earnings (TTM)US$1.67m
Revenue (TTM)US$538.98m

586.1x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADTN income statement (TTM)
RevenueUS$538.98m
Cost of RevenueUS$321.33m
Gross ProfitUS$217.64m
ExpensesUS$215.97m
EarningsUS$1.67m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.034
Gross Margin40.38%
Net Profit Margin0.31%
Debt/Equity Ratio0.0%

How did ADTN perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

1,044%

Payout Ratio

Valuation

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

586.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ADTN ($20.09) is trading above our estimate of fair value ($5.4)

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 (586.1x) compared to the US Communications industry average (29.2x).

PE vs Market: ADTN is poor value based on its PE Ratio (586.1x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: ADTN is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

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


Future Growth

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

111.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADTN's forecast earnings growth (111% per year) is above the savings rate (2%).

Earnings vs Market: ADTN's earnings (111% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: ADTN's revenue (12.7% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: ADTN's revenue (12.7% 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?

-41.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADTN has a large one-off gain of $3.1M impacting its September 30 2021 financial results.

Growing Profit Margin: ADTN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ADTN's earnings have declined by 41.4% 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 (22.8%).


Return on Equity

High ROE: ADTN's Return on Equity (0.5%) is considered low.


Financial Health

How is ADTRAN's financial position?


Financial Position Analysis

Short Term Liabilities: ADTN's short term assets ($349.5M) exceed its short term liabilities ($134.0M).

Long Term Liabilities: ADTN's short term assets ($349.5M) exceed its long term liabilities ($60.1M).


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


Dividend

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

1.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADTN's dividend (1.79%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: ADTN's dividend (1.79%) is low compared to the top 25% of dividend payers in the US market (3.61%).


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 (1043.6%), 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 well covered by earnings (34.1% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Tom Stanton (56 yo)

16.25yrs

Tenure

US$2,898,033

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 ($USD2.90M) is about average for companies of similar size in the US market ($USD2.36M).

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


Leadership Team

Experienced Management: ADTN's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: ADTN's board of directors are considered experienced (7.1 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 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$977.981m
  • Shares outstanding: 48.68m
  • Website: https://www.adtran.com

Number of Employees


Location

  • ADTRAN, Inc.
  • 901 Explorer Boulevard
  • Huntsville
  • Alabama
  • 35806-2807
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 23:56
End of Day Share Price2021/12/03 00:00
Earnings2021/09/30
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.