(ADTN) ADTRAN - Overview
Sector: Technology | Industry: Communication Equipment | Exchange: NASDAQ (USA) | Market Cap: 1.172m USD | Total Return: 100.9% in 12m
Avg Turnover: 40.6M
Qual. Beats: 0
Rev. Trend: -45.4%
Qual. Beats: 0
Warnings
High Debt/EBITDA (173.3) with thin interest coverage (-0.9)
Interest Coverage Ratio -0.9 is critical
Altman Z'' -1.66 < 1.0 - financial distress zone
Tailwinds
Leader, Tailwind, Pullback Swing, Confidence
ADTRAN Holdings, Inc. (ADTN) is a Huntsville, Alabama-based provider of networking and communications hardware and software. The company operates through two primary segments: Network Solutions and Services & Support. Its portfolio includes optical transport systems, fiber access terminals, residential gateways, and software-as-a-service (SaaS) platforms like Mosaic One. ADTRAN serves a diverse client base ranging from global telecommunications service providers and cable operators to municipalities and small-to-medium businesses.
The company operates within the Communications Equipment sub-industry, a sector characterized by high research and development requirements to keep pace with evolving fiber-optic standards. ADTRAN utilizes a business model that integrates physical hardware sales with recurring revenue streams from managed services and software support. This hybrid approach aims to stabilize income as service providers transition from legacy copper infrastructure to high-speed XGS-PON technology.
Investors can evaluate the companys valuation metrics and historical performance trends by exploring the analytical tools available on ValueRay. ADTRAN maintains a significant international footprint with major operations in Germany and the United Kingdom, reflecting its 2022 merger with ADVA Optical Networking.
- Fiber broadband infrastructure spending cycles dictate core Network Solutions revenue
- Integration of Adva Optical acquisition impacts long-term operational margins
- Global service provider capital expenditure levels influence equipment demand
- Supply chain stabilization and inventory normalization affect quarterly cash flow
- Government subsidies for rural broadband expansion drive domestic sales growth
| Net Income: -35.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 0.52 > 1.0 |
| NWC/Revenue: 24.51% < 20% (prev 32.66%; Δ -8.15% < -1%) |
| CFO/TA 0.08 > 3% & CFO 99.3m > Net Income -35.7m |
| Current Ratio: 1.77 > 1.5 & < 3 |
| Outstanding Shares: last quarter (80.3m) vs 12m ago 0.99% < -2% |
| Gross Margin: 38.57% > 18% (prev 0.37%; Δ 3.82k% > 0.5%) |
| Asset Turnover: 94.37% > 50% (prev 79.14%; Δ 15.23% > 0%) |
| Interest Coverage Ratio: -0.88 > 6 (EBITDA TTM 895k / Interest Expense TTM 29.1m) |
| A: 0.23 (Total Current Assets 634.2m - Total Current Liabilities 359.2m) / Total Assets 1.19b |
| B: -0.62 (Retained Earnings -731.3m / Total Assets 1.19b) |
| C: -0.02 (EBIT TTM -25.7m / Avg Total Assets 1.19b) |
| D: -0.97 (Book Value of Equity -660.5m / Total Liabilities 678.5m) |
| Altman-Z'' = -1.66 = D |
| DSRI: 1.04 (Receivables 225.8m/182.8m, Revenue 1.12b/944.3m) |
| GMI: 0.97 (GM 38.57% / 37.41%) |
| AQI: 0.91 (AQ_t 0.36 / AQ_t-1 0.40) |
| SGI: 1.19 (Revenue 1.12b / 944.3m) |
| TATA: -0.11 (NI -35.7m - CFO 99.3m) / TA 1.19b) |
| Beneish M = -3.06 (Cap -4..+1) = AA |
As of May 25, 2026, the stock is trading at USD 15.67 with a total of 2,797,964 shares traded.
Over the past week, the price has changed by +5.10%,
over one month by -6.39%,
over three months by +53.33% and
over the past year by +100.90%.
ADTRAN has received a consensus analysts rating of 4.29. Therefore, it is recommended to buy ADTN.
- StrongBuy: 4
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 19.5 | 24.4% |
P/S = 1.0445
P/B = 8.5813
P/EG = 1.8607
Revenue TTM = 1.12b USD
EBIT TTM = -25.7m USD
EBITDA TTM = 895k USD
Long Term Debt = 218.4m USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 243.4m USD (corrected: LT Debt 218.4m + ST Debt none) + Leases 24.9m
Net Debt = 155.1m USD (calculated: Debt 243.4m - CCE 88.3m)
Enterprise Value = 1.33b USD (1.17b + Debt 243.4m - CCE 88.3m)
Interest Coverage Ratio = -0.88 (Ebit TTM -25.7m / Interest Expense TTM 29.1m)
EV/FCF = 22.78x (Enterprise Value 1.33b / FCF TTM 58.3m)
FCF Yield = 4.39% (FCF TTM 58.3m / Enterprise Value 1.33b)
FCF Margin = 5.19% (FCF TTM 58.3m / Revenue TTM 1.12b)
Net Margin = -3.18% (Net Income TTM -35.7m / Revenue TTM 1.12b)
Gross Margin = 38.57% ((Revenue TTM 1.12b - Cost of Revenue TTM 689.4m) / Revenue TTM)
Gross Margin QoQ = 39.49% (prev 39.01%)
Tobins Q-Ratio = 1.12 (Enterprise Value 1.33b / Total Assets 1.19b)
Interest Expense / Debt = 11.97% (Interest Expense 29.1m / Debt 243.4m)
Taxrate = 21.0% (US default 21%)
NOPAT = -20.3m (EBIT -25.7m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.77 (Total Current Assets 634.2m / Total Current Liabilities 359.2m)
Debt / Equity = 1.77 (Debt 243.4m / totalStockholderEquity, last quarter 137.5m)
Debt / EBITDA = 173.3 (Net Debt 155.1m / EBITDA 895k)
Debt / FCF = 2.66 (Net Debt 155.1m / FCF TTM 58.3m)
Total Stockholder Equity = 148.6m (last 4 quarters mean from totalStockholderEquity)
RoA = -3.00% (Net Income -35.7m / Total Assets 1.19b)
RoE = -4.06% (Net Income TTM -35.7m / Total Stockholder Equity 880.0m)
RoCE = -2.34% (EBIT -25.7m / Capital Employed (Equity 880.0m + L.T.Debt 218.4m))
RoIC = -2.76% (negative operating profit) (NOPAT -20.3m / Invested Capital 737.6m)
WACC = 12.87% (E(1.17b)/V(1.42b) * Re(13.58%) + D(243.4m)/V(1.42b) * Rd(11.97%) * (1-Tc(0.21)))
Discount Rate = 13.58% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 95.56 | Cagr: 1.01%
[DCF] Terminal Value 63.12% ; FCFF base≈56.0m ; Y1≈61.3m ; Y5≈77.2m
[DCF] Fair Price = 6.23 (EV 659.7m - Net Debt 155.1m = Equity 504.6m / Shares 81.0m; r=12.87% [WACC]; 5y FCF grow 10.95% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.20 | # QB: 0
Revenue Correlation: -45.37 | Revenue CAGR: -6.25% | SUE: 0.21 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.13 | Chg30d=+12.54% | Revisions=+25% | Analysts=6
EPS next Quarter (2026-09-30): EPS=0.15 | Chg30d=-0.88% | Revisions=+14% | Analysts=6
EPS current Year (2026-12-31): EPS=0.57 | Chg30d=+14.66% | Revisions=+25% | GrowthEPS=+149.3% | GrowthRev=+9.4%
EPS next Year (2027-12-31): EPS=0.77 | Chg30d=+1.02% | Revisions=+0% | GrowthEPS=+33.6% | GrowthRev=+9.0%
[Analyst] Revisions Ratio: +25%