ADVA Optical Networking (ADV) AI Stock Analysis

• Market Cap: €1.12B
• Dividend Yield: 2.37%
• Average Volume (3M): 5.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: DE
• Employees: 2,077
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): N/A
• Shares Outstanding: 52,047,500
• 10 Day Avg. Volume: 4,837
• 30 Day Avg. Volume: 5,236
• PEG Ratio: -0.05
• Price to Book (P/B): 2.68
• Price to Sales (P/S): 2.37
• P/FCF Ratio: 19.85
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: €21.50 ▼(-1.83% Downside)

The overall stock score reflects mixed financial performance and technical analysis indicators. Significant challenges in profitability and revenue growth weigh heavily on the score, while positive cash flow management and current stock trends provide some optimism. The lack of earnings call data and corporate events means these factors do not influence the score.

ADVA Optical Networking Business Overview & Revenue Model

Company Description

Adtran Networks SE engages in the development, manufacture, and sale of optical and Ethernet-based networking solutions. Its products and services include scalable optical transport, carrier Ethernet access, and automated network management. The company was founded by Brian Protvia on January 20, 1994 and is headquartered in Munich, Germany.

How the Company Makes Money

ADVA Optical Networking generates revenue through multiple streams, primarily by selling its optical networking products and software solutions to telecommunications service providers, cloud operators, and enterprises. The company earns revenue from the direct sale of hardware, such as optical transport equipment, as well as from software licenses and subscription services that enhance network management and performance. Additionally, ADVA has established significant partnerships with major telecommunications operators and technology companies, which contribute to its revenue through joint ventures and collaborative projects. Furthermore, the company also benefits from ongoing maintenance and support contracts, which provide a steady income stream beyond the initial sale of its products.

ADVA Optical Networking Financial Statement Overview

Summary

ADVA Optical Networking demonstrates a mixed financial performance with significant challenges in profitability and revenue growth. Despite these challenges, a strong equity foundation and effective cash flow management contribute positively.

Income Statement

ADVA Optical Networking has shown fluctuating revenue trends with a significant revenue decline in 2024, leading to a negative net margin and EBIT margin. The company has struggled with profitability as evidenced by the negative net income and EBIT in the latest period, indicating ongoing challenges in achieving operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, suggesting a balanced approach to leverage. However, the decrease in stockholders' equity over recent years may signal potential financial instability. Despite these concerns, the equity ratio remains robust, reflecting a solid asset foundation.

Cash Flow

Cash flow generation has been relatively strong, with positive free cash flow in the latest year, indicating effective cash management. The operating cash flow to net income ratio is favorable, showing cash flow strength despite negative net income, which highlights the company's ability to generate cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	441.98M	438.08M	613.67M	712.11M	603.32M	564.96M
Gross Profit	152.87M	156.97M	219.49M	238.13M	218.56M	196.54M
EBITDA	22.10M	2.12M	73.86M	91.55M	118.48M	92.27M
Net Income	-66.18M	-62.70M	-14.51M	18.13M	59.22M	20.31M
Balance Sheet
Total Assets	616.30M	670.00M	657.82M	647.91M	601.52M	499.97M
Cash, Cash Equivalents and Short-Term Investments	36.55M	27.04M	30.55M	58.45M	108.99M	64.73M
Total Debt	68.69M	97.22M	96.89M	77.63M	72.82M	90.43M
Total Liabilities	270.47M	281.84M	279.83M	278.83M	261.61M	236.75M
Stockholders Equity	345.83M	388.17M	377.99M	369.08M	339.91M	263.22M
Cash Flow
Free Cash Flow	49.41M	52.35M	-30.62M	-58.32M	58.98M	38.76M
Operating Cash Flow	59.93M	63.05M	37.61M	14.84M	123.25M	97.14M
Investing Cash Flow	-72.21M	-81.38M	-64.03M	-73.08M	-64.27M	-58.35M
Financing Cash Flow	3.40M	12.56M	-161.00K	5.39M	-14.80M	-26.77M

ADVA Optical Networking Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.90
• 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 DE:ADV, the sentiment is Positive. The current price of 21.9 is above the 20-day moving average (MA) of 21.68, above the 50-day MA of 21.66, and above the 200-day MA of 20.63, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 63.13 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:ADV.

ADVA Optical Networking Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELG	79 Outperform	€1.54B	12.44	22.08%	0.99%	-5.55%	21.30%
AIXA	76 Outperform	€2.04B	21.61	10.99%	0.82%	-3.93%	-20.93%
COK	64 Neutral	€746.91M	40.14	3.09%	3.58%	-0.61%	-52.28%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
YSN	61 Neutral	€1.16B	36.45	24.42%	1.48%	12.26%	15.55%
S92	58 Neutral	€902.89M	-4.42	-53.73%	1.44%	-1.31%	-471.36%
ADV	56 Neutral	€1.12B	-37.78	―	2.37%	―	―