(ADT) ADT - Overview
Sector: Industrials | Industry: Security & Protection Services | Exchange: NYSE (USA) | Market Cap: 5.195m USD | Total Return: -12% in 12m
Avg Turnover: 81.5M
EPS Trend: 94.8%
Qual. Beats: 1
Rev. Trend: -9.8%
Qual. Beats: 1
Warnings
Altman Z'' -0.32 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
ADT Inc. is a provider of security, automation, and smart home solutions for residential and small business customers in the United States. The company’s core business model relies on recurring revenue from professional monitoring services, supported by a network of monitoring centers that respond to burglary, fire, and medical emergencies. Its product suite integrates hardware such as smart cameras and environmental sensors with software platforms like the ADT+ app for remote property management.
The specialized consumer services sector has transitioned toward DIY installation and interactive technology to compete with tech-native security entrants. ADT maintains its market position through a multi-channel distribution strategy involving direct sales, third-party dealers, and strategic retail partnerships. For more comprehensive data on this companys fundamentals, explore the tools available on ValueRay. Founded in 1874, the firm operates across diverse segments including single-family homes, apartments, and small commercial enterprises.
- Google partnership and smart home integration drive recurring monthly revenue growth
- High interest rates and housing market slowdown reduce new security system installations
- Shift toward DIY security solutions pressures traditional professional installation service margins
- Strategic divestitures of non-core commercial and solar business segments improve capital allocation
- Debt refinancing and leverage reduction efforts impact long-term corporate valuation and cash flow
| Net Income: 623.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 2.16 > 1.0 |
| NWC/Revenue: -3.27% < 20% (prev -5.22%; Δ 1.95% < -1%) |
| CFO/TA 0.13 > 3% & CFO 2.06b > Net Income 623.3m |
| Net Debt (7.57b) to EBITDA (2.88b): 2.63 < 3 |
| Current Ratio: 0.84 > 1.5 & < 3 |
| Outstanding Shares: last quarter (877.0m) vs 12m ago -5.30% < -2% |
| Gross Margin: 50.38% > 18% (prev 0.50%; Δ 4.99k% > 0.5%) |
| Asset Turnover: 32.38% > 50% (prev 31.43%; Δ 0.95% > 0%) |
| Interest Coverage Ratio: 3.23 > 6 (EBITDA TTM 2.88b / Interest Expense TTM 407.0m) |
| A: -0.01 (Total Current Assets 899.0m - Total Current Liabilities 1.07b) / Total Assets 15.9b |
| B: -0.17 (Retained Earnings -2.78b / Total Assets 15.9b) |
| C: 0.08 (EBIT TTM 1.32b / Avg Total Assets 15.9b) |
| D: -0.23 (Book Value of Equity -2.78b / Total Liabilities 12.1b) |
| Altman-Z'' = -0.32 = B |
| DSRI: 0.90 (Receivables 368.0m/395.3m, Revenue 5.14b/4.98b) |
| GMI: 1.00 (GM 50.38% / 50.29%) |
| AQI: 1.00 (AQ_t 0.93 / AQ_t-1 0.93) |
| SGI: 1.03 (Revenue 5.14b / 4.98b) |
| TATA: -0.09 (NI 623.3m - CFO 2.06b) / TA 15.9b) |
| Beneish M = -3.18 (Cap -4..+1) = AA |
As of May 24, 2026, the stock is trading at USD 6.97 with a total of 5,882,581 shares traded.
Over the past week, the price has changed by +2.05%,
over one month by -4.39%,
over three months by -9.30% and
over the past year by -12.02%.
ADT has received a consensus analysts rating of 3.60. Therefore, it is recommended to hold ADT.
- StrongBuy: 1
- Buy: 1
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 8.2 | 17.1% |
P/E Forward = 7.4683
P/S = 1.0107
P/B = 1.4278
Revenue TTM = 5.14b USD
EBIT TTM = 1.32b USD
EBITDA TTM = 2.88b USD
Long Term Debt = 7.36b USD (from longTermDebt, last quarter)
Short Term Debt = 309.0m USD (from shortTermDebt, last quarter)
Debt = 7.69b USD (from shortLongTermDebtTotal, last quarter) + Leases 19.3m
Net Debt = 7.57b USD (calculated: Debt 7.69b - CCE 119.0m)
Enterprise Value = 12.8b USD (5.19b + Debt 7.69b - CCE 119.0m)
Interest Coverage Ratio = 3.23 (Ebit TTM 1.32b / Interest Expense TTM 407.0m)
EV/FCF = 7.14x (Enterprise Value 12.8b / FCF TTM 1.79b)
FCF Yield = 14.00% (FCF TTM 1.79b / Enterprise Value 12.8b)
FCF Margin = 34.78% (FCF TTM 1.79b / Revenue TTM 5.14b)
Net Margin = 12.13% (Net Income TTM 623.3m / Revenue TTM 5.14b)
Gross Margin = 50.38% ((Revenue TTM 5.14b - Cost of Revenue TTM 2.55b) / Revenue TTM)
Gross Margin QoQ = 54.03% (prev 49.14%)
Tobins Q-Ratio = 0.80 (Enterprise Value 12.8b / Total Assets 15.9b)
Interest Expense / Debt = 5.29% (Interest Expense 407.0m / Debt 7.69b)
Taxrate = 25.55% (58.0m / 227.0m)
NOPAT = 979.9m (EBIT 1.32b * (1 - 25.55%))
Current Ratio = 0.84 (Total Current Assets 899.0m / Total Current Liabilities 1.07b)
Debt / Equity = 2.02 (Debt 7.69b / totalStockholderEquity, last quarter 3.80b)
Debt / EBITDA = 2.63 (Net Debt 7.57b / EBITDA 2.88b)
Debt / FCF = 4.23 (Net Debt 7.57b / FCF TTM 1.79b)
Total Stockholder Equity = 3.72b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.93% (Net Income 623.3m / Total Assets 15.9b)
RoE = 9.58% (Net Income TTM 623.3m / Total Stockholder Equity 6.51b)
RoCE = 9.49% (EBIT 1.32b / Capital Employed (Equity 6.51b + L.T.Debt 7.36b))
RoIC = 6.52% (NOPAT 979.9m / Invested Capital 15.0b)
WACC = 5.65% (E(5.19b)/V(12.9b) * Re(8.18%) + D(7.69b)/V(12.9b) * Rd(5.29%) * (1-Tc(0.26)))
Discount Rate = 8.18% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -4.56%
[DCF] Terminal Value 77.97% ; FCFF base≈1.65b ; Y1≈1.89b ; Y5≈2.78b
[DCF] Fair Price = 48.52 (EV 41.8b - Net Debt 7.57b = Equity 34.2b / Shares 705.8m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 94.80 | EPS CAGR: 27.55% | SUE: 1.15 | # QB: 1
Revenue Correlation: -9.83 | Revenue CAGR: -0.58% | SUE: 0.97 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.22 | Chg30d=-3.42% | Revisions=-50% | Analysts=5
EPS next Quarter (2026-09-30): EPS=0.23 | Chg30d=-0.18% | Revisions=+14% | Analysts=5
EPS current Year (2026-12-31): EPS=0.91 | Chg30d=+2.01% | Revisions=+33% | GrowthEPS=+2.7% | GrowthRev=+0.4%
EPS next Year (2027-12-31): EPS=0.97 | Chg30d=+0.89% | Revisions=+33% | GrowthEPS=+6.0% | GrowthRev=+2.5%
[Analyst] Revisions Ratio: -50%