Adt (ADT) AI Stock Analysis

• Market Cap: $6.71B
• Dividend Yield: 2.69%
• Average Volume (3M): 7.28M
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.74
• Revenue Growth: 4.77%
• EPS Growth: -22.78%
• Country: US
• Employees: 12,800
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.23
• Shares Outstanding: 765,018,200
• 10 Day Avg. Volume: 5,871,818
• 30 Day Avg. Volume: 7,279,556
• PEG Ratio: 1.27
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 3.62
• Enterprise Value/Market Cap: 2.30
• Enterprise Value/Revenue: 3.02
• Enterprise Value/Gross Profit: 6.11
• Enterprise Value/Ebitda: 5.39
• 1Y Price Target: $9.00
• Price Target Upside: 10.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.87
• Revenue Forecast (FY): $5.16B

• Rating: 71 Outperform
• Price Target: $9.00 ▲(10.02% Upside)

ADT's overall stock score reflects a company with strong valuation and positive financial performance, despite high leverage risks. Technical analysis presents mixed signals, but strategic initiatives and solid earnings call sentiment contribute positively. Continued focus on debt management and operational efficiency will be key to sustaining growth.

Positive Factors

Revenue Growth

The 4% revenue growth indicates a positive trend in market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Generation

Strong cash flow generation enhances financial stability and provides the company with resources for reinvestment and debt reduction.

Product Innovation

New product launches like the ADT+ Alarm Range Extender demonstrate ADT's commitment to innovation, potentially driving future growth and customer retention.

Negative Factors

High Leverage

Significant leverage poses a risk to financial stability, potentially limiting flexibility in adverse economic conditions.

Increased Attrition Rate

Rising attrition rates can impact revenue consistency and customer lifetime value, challenging long-term growth.

Subscriber Growth Challenges

Declining subscriber additions may hinder revenue growth and market share expansion, affecting future business prospects.

Adt Business Overview & Revenue Model

Company Description

ADT Inc. provides security, automation, and smart home solutions to consumer and business customers in the United States. It provides a range of fire detection, fire suppression, video surveillance, and access control systems to residential, commercial, and multi-site customers. The company primarily offers monitored security and automation solutions, including the installation and monitoring of security and premises automation systems designed to detect intrusion, control access, sense movement, smoke, fire, carbon monoxide, flooding, temperature, and other environmental conditions and hazards; and address personal emergencies, such as injuries, medical emergencies, or incapacitation. It also provides interactive and smart home solutions that allow customers to use their smart phones, tablets, and laptops to arm and disarm their security systems, adjust lighting or thermostat levels, and view real-time video of their premises; and creates customized and automated schedules for managing lights, thermostats, appliances, garage doors, cameras, and other connected devices, as well as offers monitoring and maintenance services. The company offers its products under the ADT, ADT Pulse, Protection 1, ADT Commercial, and Blue by ADT names. It operates through a network of approximately 250 sales and service offices, as well as three regional distribution centers, which are supported by 17 multi-use sales, customer, and field support locations housing its nine UL-listed monitoring centers and four national sales centers. The company was formerly known as Prime Security Services Parent, Inc. and changed its name to ADT Inc. in September 2017. ADT Inc. was founded in 1874 and is headquartered in Boca Raton, Florida.

How the Company Makes Money

ADT generates revenue primarily through subscription-based monitoring services, which provide customers with 24/7 security monitoring. The company charges a monthly fee for these services, which can vary based on the specific features and level of service chosen by the customer. Additionally, ADT earns revenue from the sale and installation of security equipment, including cameras, alarms, and smart home devices. Upselling and cross-selling of additional services, such as home automation and video monitoring, also contribute to the company's earnings. Strategic partnerships with companies in technology and home services sectors further enhance ADT's revenue opportunities, allowing for bundled offerings and expanded market reach.

Adt Financial Statement Overview

Summary

ADT's financial performance shows a positive trajectory with improvements in profitability and cash flow generation. The company has managed to grow revenues and enhance margins, although high leverage remains a concern. Continued focus on reducing debt and maintaining cash flow will be crucial for sustaining financial health.

Income Statement

ADT has shown a consistent improvement in revenue growth, with a TTM increase of 1.67% compared to the previous year. The gross profit margin is strong at 74.58%, indicating efficient cost management. The net profit margin has improved significantly to 12.30% in the TTM, reflecting enhanced profitability. However, the historical volatility in net profit margin and negative margins in earlier years highlight potential risks.

Balance Sheet

ADT's balance sheet shows a high debt-to-equity ratio of 2.14 in the TTM, indicating significant leverage, which could pose financial risks. The return on equity has improved to 16.62%, showcasing better utilization of equity. However, the equity ratio remains low, suggesting a reliance on debt financing.

Cash Flow

The company has demonstrated a healthy free cash flow growth rate of 10.65% in the TTM, indicating strong cash generation. The operating cash flow to net income ratio is close to 1, suggesting efficient conversion of earnings into cash. However, the free cash flow to net income ratio has decreased, pointing to potential challenges in maintaining cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.11B	4.90B	4.65B	5.17B	5.31B	5.31B
Gross Profit	2.52B	2.48B	2.38B	2.20B	1.72B	1.79B
EBITDA	2.86B	2.80B	2.69B	2.52B	2.25B	1.94B
Net Income	640.56M	501.05M	-166.97M	132.66M	-340.82M	-632.19M
Balance Sheet
Total Assets	15.98B	16.05B	15.96B	17.87B	16.89B	16.12B
Cash, Cash Equivalents and Short-Term Investments	63.00M	204.06M	14.62M	257.00M	24.00M	205.00M
Total Debt	7.81B	7.81B	7.84B	9.83B	9.69B	9.52B
Total Liabilities	12.32B	12.25B	12.18B	14.44B	13.64B	13.08B
Stockholders Equity	3.66B	3.80B	3.79B	3.43B	3.25B	3.04B
Cash Flow
Free Cash Flow	1.69B	1.72B	850.84M	976.00M	787.00M	792.00M
Operating Cash Flow	1.97B	1.88B	1.66B	1.89B	1.65B	1.37B
Investing Cash Flow	-1.18B	-1.30B	242.49M	-1.53B	-1.70B	-1.14B
Financing Cash Flow	-822.34M	-515.36M	-2.14B	-15.00M	-128.45M	-70.00M

Adt Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADT, the sentiment is Neutral. The current price of 8.18 is above the 20-day moving average (MA) of 8.10, below the 50-day MA of 8.41, and below the 200-day MA of 8.24, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 72.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ADT.

Adt Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	78 Outperform	$1.47B	33.63	25.03%	1.28%	-2.28%	-9.94%
ALLE	72 Outperform	$13.69B	21.53	36.41%	1.23%	6.87%	13.53%
ADT	71 Outperform	$6.71B	11.68	17.24%	2.69%	4.77%	-22.78%
BCO	71 Outperform	$4.85B	29.54	61.95%	0.86%	3.07%	48.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ARLO	59 Neutral	$1.54B	412.22	3.80%	―	-2.83%	―
REZI	51 Neutral	$5.06B	―	-20.90%	―	15.45%	-488.24%

Adt Corporate Events

ADT Reports Q3 2025 Financial Results with Revenue Growth

On November 4, 2025, ADT Inc. announced its third-quarter 2025 financial results, highlighting a 4% increase in total revenue to $1.3 billion and a 1% rise in recurring monthly revenue to $362 million. The company also reported a GAAP income from continuing operations of $144 million, reflecting a $11 million increase from the previous year. ADT’s strategic initiatives, including share repurchases, refinancing transactions, and the launch of new products like the ADT+ Alarm Range Extender, are aimed at strengthening its market position and delivering long-term value to stakeholders.

ADT Secures $325 Million Term Loan for Flexibility

On October 24, 2025, ADT Inc.’s subsidiaries entered into an amendment to their existing credit agreement, resulting in the incurrence of $300 million in incremental term B-2 loans. These funds, along with proceeds from a note offering and cash on hand, were used to fully redeem $1.3 billion of second-priority senior secured notes. Additionally, on October 28, 2025, ADT’s subsidiaries secured a $325 million term loan to be used for general corporate purposes, including debt repayment. This strategic financial maneuvering aims to optimize ADT’s debt structure and improve its financial flexibility, potentially enhancing its market positioning and stakeholder confidence.

ADT Completes $1 Billion Senior Secured Notes Offering

On October 15, 2025, ADT Security Corporation, a subsidiary of ADT Inc., completed a $1.0 billion offering of first-priority senior secured notes due in 2033. The proceeds will be used to redeem $1.3 billion of existing second-priority notes and cover related expenses, impacting the company’s financial structure by optimizing its debt obligations.

ADT Announces New $300M Loan Facility Plan

On September 25, 2025, ADT Inc. announced plans to market a new $300 million incremental first lien senior secured term B-2 loan facility, expected to mature in 2032. The proceeds, along with additional debt and cash, will be used to redeem $1.3 billion of outstanding second-priority senior secured notes due 2028. The redemption is contingent on successful marketing and completion of new long-term indebtedness by October 25, 2025.