Adt (ADT) AI Stock Analysis

• Market Cap: $6.64B
• Dividend Yield: 2.91%
• Average Volume (3M): 13.62M
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.17
• Revenue Growth: -13.19%
• EPS Growth: 10.03%
• Country: US
• Employees: 14,300
• Sector: Industrials
• Sector Strength: 69
• Industry: Corporate Services
• EPS (TTM): 0.53
• Shares Outstanding: 821,758,700
• 10 Day Avg. Volume: 26,258,912
• 30 Day Avg. Volume: 13,621,036
• PEG Ratio: 1.47
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.35
• Price to Cash Flow (P/CF): 3.60
• P/FCF Ratio: 2.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.33
• Price Target Upside: 10.77% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

ADT's strong financial performance, combined with positive technical indicators and a compelling valuation, contribute to an overall favorable stock outlook. The company's strategic focus on growth and operational improvements, as highlighted in the earnings call, further strengthens its position. However, high leverage remains a key risk factor to monitor.

Positive Factors

Revenue Growth

Revenue growth of 7.4% came in ahead of expectations, driven by record-level recurring monthly revenue, improved pricing, and better retention rates.

Share Repurchase Program

A new $500 million share-repurchase program was announced, indicating confidence in the company's financial health and future prospects.

Negative Factors

Adjusted EBITDA and Margins

Adjusted EBITDA and margins were below expectations due to investments in innovation and long-term objectives.

Adt Business Overview & Revenue Model

Company Description

ADT Inc. is a leading provider of security, automation, and smart home solutions in the United States. The company operates in the security services sector, offering a wide range of products and services designed to protect homes and businesses. ADT's core offerings include professionally installed and monitored security systems, smart home automation, fire and life safety services, and commercial security solutions. With a focus on innovation and customer service, ADT aims to provide peace of mind to its customers through advanced security technologies and comprehensive monitoring services.

How the Company Makes Money

ADT makes money through a combination of product sales, installation charges, and subscription fees for monitoring services. The company's primary revenue stream comes from recurring monthly fees charged to customers for monitoring and maintaining security systems. This subscription model ensures a steady income stream and customer retention. Additionally, ADT generates revenue from the sale and installation of security equipment and smart home devices. The company also engages in strategic partnerships with technology providers and real estate developers to expand its service offerings and customer base. These partnerships can enhance its product portfolio and provide cross-selling opportunities, further contributing to its earnings.

Adt Financial Statement Overview

Summary

ADT demonstrates robust profitability and cash flow management, with a notable improvement in net income. However, the high leverage poses a potential risk, requiring careful management. Despite this, the company's financial position is strengthened by strong operational efficiencies and cash flow generation, positioning it well for future investments and debt reduction.

Income Statement

ADT shows strong profitability with a high gross profit margin, indicating efficient cost management. Net profit margin has improved, turning positive in 2024 after previous losses, showcasing a significant turnaround. Revenue growth is volatile, with a decline in recent years, but the EBIT and EBITDA margins have remained robust, reflecting operational efficiency.

Balance Sheet

ADT's debt-to-equity ratio indicates a high level of leverage, which could pose financial risks if not managed carefully. However, the return on equity has improved significantly, driven by the recent profitability increase. The equity ratio is relatively low, suggesting a heavy reliance on debt financing, which may limit financial flexibility.

Cash Flow

ADT's cash flow position is strong, with a significant increase in free cash flow, reflecting improved cash generation capabilities. The operating cash flow to net income ratio is healthy, indicating effective conversion of earnings to cash. The company has managed to maintain a positive free cash flow to net income ratio, supporting its ability to invest and reduce debt.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.90B	4.98B	6.39B	5.31B	5.32B
	Gross Profit
4.05B	3.97B	4.36B	3.76B	3.80B
	EBIT
1.21B	1.08B	560.00M	62.00M	170.00M
	EBITDA
2.60B	2.04B	2.37B	1.96B	1.94B
	Net Income Common Stockholders
501.05M	-166.97M	132.66M	-341.00M	-632.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
96.21M	14.62M	257.00M	24.00M	205.00M
	Total Assets
16.05B	15.96B	17.87B	16.89B	16.12B
	Total Debt
7.71B	7.94B	9.83B	9.69B	9.49B
	Net Debt
7.61B	7.81B	9.57B	9.67B	9.29B
	Total Liabilities
12.25B	12.18B	14.44B	13.64B	13.08B
	Stockholders Equity
3.80B	3.79B	3.43B	3.25B	3.04B
Cash Flow		Free Cash Flow
1.72B	850.84M	976.00M	787.00M	792.00M
	Operating Cash Flow
1.88B	1.66B	1.89B	1.65B	1.37B
	Investing Cash Flow
-1.30B	242.49M	-1.53B	-1.70B	-1.14B
	Financing Cash Flow
-515.36M	-2.14B	-15.00M	-128.00M	-70.00M

Adt Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADT, the sentiment is Positive. The current price of 7.52 is below the 20-day moving average (MA) of 7.61, above the 50-day MA of 7.43, and above the 200-day MA of 7.29, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 17.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADT.

Adt Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADT	78 Outperform	$6.64B	14.79	14.41%	2.91%	-13.19%	10.03%
JCI	75 Outperform	$50.82B	29.75	9.80%	1.92%	-4.53%	-14.72%
BCO	71 Outperform	$3.77B	24.00	55.57%	1.11%	2.82%	95.64%
ALLE	68 Neutral	$10.87B	18.47	42.39%	1.52%	3.33%	11.51%
Sector *	62 Neutral	$8.17B	12.83	0.26%	3.07%	3.83%	-16.44%
MAS	60 Neutral	$15.13B	19.69	-118.61%	1.60%	-1.74%	-6.91%
SWK	57 Neutral	$12.79B	45.82	3.22%	3.93%	-2.63%	―

Adt Corporate Events

ADT Announces COO Donald Young’s Retirement

On March 6, 2025, ADT Inc. announced that Donald Young, Executive Vice President and Chief Operating Officer, will retire from his position effective June 6, 2025. Mr. Young will transition to a special advisor role to assist with the transition of his responsibilities. As part of the transition agreement, he will receive compensation and benefits, including the vesting of restricted shares and eligibility for a prorated bonus. This transition is structured to ensure a smooth handover of duties and maintain continuity within the company’s operations.

ADT Board Members Retire Amid Governance Shift

On February 28, 2025, William M. Lewis, Jr. and Lee J. Solomon retired from ADT Inc.’s Board of Directors. Their retirement aligns with ADT’s transition away from being a ‘controlled company’ under NYSE rules, following a decrease in ownership by Apollo Global Management. This change necessitates a majority of independent directors on the board within a year. The retirements were not due to any disagreements with the company.

ADT Announces Dividend and Share Repurchase Plan

On February 27, 2025, ADT Inc. announced a dividend of $0.055 per share for its common stockholders, payable on April 3, 2025, and introduced a $500 million share repurchase plan effective until April 30, 2026. The company reported strong financial results for 2024, with significant growth in earnings and cash flow, record customer retention, and the successful rollout of the ADT+ platform. ADT’s strategic initiatives, such as the Trusted Neighbor service and partnerships like the one with State Farm, have positioned it as a leader in the security industry, enhancing shareholder value and customer satisfaction.

ADT Inc. Appoints Thomas Gartland to Board

On January 20, 2025, ADT Inc. appointed Thomas Gartland to its Board of Directors, effective January 21, 2025. Gartland, who is currently the chairman and CEO of Montway Auto Transport, brings a wealth of experience from his previous roles, including executive chairman of Scan Global Logistics and president of North America for Avis Budget Group. His appointment is expected to bolster ADT’s strategic growth and operational excellence as he joins the Audit Committee of the Board.