ADT

ADT

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Industrials

industry

Security & Protection Services

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/23/26

Business Summary

ADT generates cash through recurring monitoring contracts tied to residential and commercial security systems, creating predictable revenue streams layered on top of installation and equipment sales. The core moat is scale in monitoring infrastructure and customer relationships, which lowers churn and spreads fixed costs across a large subscriber base. Its operating margin of 15.80% reflects the leverage inherent in subscription-based monitoring once systems are installed. The business model thrives on long-term contracts, recurring billing, and incremental service upgrades, turning physical security hardware into ongoing cash flow rather than one-time sales.

VALUATION

P/E

9.9

Market Cap ($M USD)

$5,519

Forward P/E

7

PEG

5.7

PRICE TO SALES

1.2

PRICE TO BOOK

1.5

EV / EBITDA

4.9

5-Year Average P/E

DIVIDEND

Yield

3.30%

Annual Payout

$0.22

Payout Ratio

30.60%

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

9.50%

Financial Health & Profitability

Earnings Per Share

$0.72

Next Year EPS Growth Estimate

$0.96

Next Year Revenue Growth Estimate

3.00%

Return on Equity (ROE)

15.80%

Operating Margin

25.50%

Debt-to-Equity

2

Piotroski F-Score

8

Altman Z-Score

0.6

Return on Invested Capital (ROIC)

8.10%%

Current Ratio

0.9

Quick Ratio

Gainseekers Quantitative Analysis

Summary

ADT screens as statistically cheap but financially fragile. A trailing P/E of 9.9 and a Forward P/E of 7 suggest the market is pricing in either earnings durability or skepticism about sustainability, yet the PEG Forward of 5.7 signals that growth relative to valuation is not compelling. The real red flag is the Altman Z-Score of 0.6, which implies balance sheet stress and elevated financial risk despite a respectable 15.80% operating margin. This is a classic low-multiple equity where the valuation looks inexpensive on earnings, but the balance sheet risk and modest 3.00% ROE prevent it from being a clean value mispricing.

AI Exposure / Tech Reliance

Operating in Security & Protection Services, ADT sits in a segment that is increasingly shaped by AI-driven surveillance, predictive monitoring, and automation. The ability to integrate smart security systems and data-driven monitoring is critical in maintaining pricing power and operational leverage. However, resilience will depend less on pure AI innovation and more on execution efficiency, given its 15.80% operating margin and capital structure constraints.

The Bull Case

From a deep value or GARP lens, there are legitimate positives. A Piotroski F-Score of 8 signals strong fundamental momentum and improving financial quality, which is not typical for distressed equities. ROIC at 8.10% combined with a 15.80% operating margin shows the core business is generating real operating profitability relative to invested capital. The 9.9 P/E and 7 Forward P/E suggest earnings power is being discounted aggressively, while a 2 TTM Yield and 3.30% dividend provide tangible shareholder return support. With institutional ownership at $8.50 and a Consensus Rating of 8.70%, there is evidence that professional capital still sees underlying value.

The Bear Case

The structural concerns are serious. An Altman Z-Score of 0.6 and a Current Ratio of 0.9 point to balance sheet fragility and potential liquidity stress. Debt/Equity at 25.50% may not look extreme in isolation, but combined with a 3.00% ROE it signals inefficient capital structure utilization. The PEG Forward of 5.7 implies that growth is weak relative to valuation, and a Short % of Float at 9.50% shows meaningful skepticism in the market. When you add a Price/Sales of 1.2 and Price/Book of 1.5 to modest forward expectations, you’re not looking at a hyper-growth turnaround—you're looking at a leveraged operator that must execute flawlessly to justify even its discounted multiple.

Market Sentiment & Smart Money

Short Interest %

8.70%

Analyst Consensus

2.67

Average Analyst Price Target

$8.50

Institutional Ownership %

103.10%

1-Year Beta

0.88

Insider Buying % (6 Mo)

1.60%%

Distance to 52-Week High

75.30%%

Distance to 52-Week Low

107.70%%