Adt (ADT) AI Stock Analysis

• Market Cap: $6.71B
• Dividend Yield: 2.76%
• Average Volume (3M): 18.26M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.84
• Revenue Growth: -5.44%
• EPS Growth: -16.05%
• Country: US
• Employees: 12,800
• Sector: Industrials
• Sector Strength: 75
• Industry: Security & Protection Services
• EPS (TTM): 0.58
• Shares Outstanding: 781,765,900
• 10 Day Avg. Volume: 17,556,160
• 30 Day Avg. Volume: 18,261,817
• PEG Ratio: 1.51
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.29
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.79
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $9.00
• Price Target Upside: 12.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

ADT's overall stock score reflects strong profitability and cash flow generation, alongside moderate valuation metrics. Despite high leverage, the company's operational resilience and strategic initiatives are positives. Technical indicators are neutral, and the earnings call highlighted robust financial performance with positive guidance.

Positive Factors

AI and Efficiency

AI deployment in call centers has led to increased efficiency and potential cost savings, with 90% of customer service chats processed by AI agents.

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

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

Negative Factors

EBITDA and Margins

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

Tariffs and Costs

Tariffs could lead to higher equipment costs, however ADT may be able to mitigate the impact via supplier negotiations, inventory management, buying forward, and even potentially implementing a tariff charge for new customers.

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 exhibits strong profitability metrics with improving EBIT and EBITDA margins. However, the high debt-to-equity ratio suggests potential financial risk, and revenue growth has been inconsistent. Cash flow generation is robust, supporting liquidity and operational efficiency.

Income Statement

The company has shown a consistent improvement in its EBIT and EBITDA margins, reaching 24.9% and 46.6% TTM (Trailing-Twelve-Months), respectively. The gross profit margin remains robust at 74.2% TTM. However, the revenue growth has been inconsistent, with a significant drop in 2022, and the net profit margin has fluctuated, although it improved to 11.1% TTM.

Balance Sheet

ADT's debt-to-equity ratio has decreased slightly but remains high, indicating a leveraged position. The return on equity improved to 15.2% TTM, reflecting better profitability. The equity ratio is relatively stable at 22.8% TTM, suggesting moderate financial leverage.

Cash Flow

Free cash flow growth is volatile, with a decline in the latest period, and the free cash flow to net income ratio is strong at 2.61 TTM, indicating solid cash conversion. The operating cash flow to net income ratio is 3.62, showing efficient cash generation from operations.

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: 8.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 8.02 is above the 20-day moving average (MA) of 7.90, above the 50-day MA of 7.80, and above the 200-day MA of 7.36, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 54.29 is Neutral, neither overbought nor oversold. The STOCH value of 74.35 is Neutral, 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
ALLE	78 Outperform	$11.81B	19.27	42.05%	1.43%	5.48%	16.27%
ADT	72 Outperform	$6.71B	13.72	16.26%	2.76%	-5.44%	-16.05%
NSSC	72 Outperform	$829.22M	17.46	29.13%	1.53%	5.14%	12.03%
BCO	71 Outperform	$3.86B	24.54	55.57%	1.08%	2.82%	95.64%
REZI	68 Neutral	$2.42B	23.07	3.83%	―	8.31%	-49.90%
Sector *	63 Neutral	$4.23B	11.54	5.34%	209.77%	4.14%	-9.49%
ARLO	61 Neutral	$1.02B	―	-29.88%	―	4.01%	-27.92%

Adt Corporate Events

ADT Reports Strong Q1 2025 Financial Performance

On April 24, 2025, ADT Inc. announced its first quarter results for 2025, showcasing strong financial performance with a 7% increase in total revenue to $1.3 billion and a record recurring monthly revenue of $360 million. The company reported a 28% rise in GAAP operating cash flows and a 105% increase in adjusted free cash flow, while returning $445 million to shareholders through share repurchases and dividends. ADT is on track to meet its full-year 2025 guidance, driven by solid growth in cash flow and earnings per share, alongside investments in expanding capabilities and customer base.

Spark’s Take on ADT Stock

According to Spark, TipRanks’ AI Analyst, ADT is a Outperform.

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.

To see Spark’s full report on ADT stock, click here.

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.