ADTN

Adtran Holdings

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Technology

industry

Communication Equipment

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

05/06/26

Business Summary

ADTN operates in communication equipment, supplying networking infrastructure that enables broadband and data transport. The business generates cash by selling hardware and related solutions into telecom and enterprise networks, monetizing the continual need for faster and more reliable connectivity. Its moat is rooted in installed base relationships, technical integration within carrier networks, and switching costs tied to infrastructure upgrades. However, with a -28.50% operating margin and -7.70% ROIC, whatever competitive positioning exists is currently not translating into economic profit, making execution the defining variable.

VALUATION

P/E

-

Market Cap ($M USD)

$1,217

Forward P/E

19.9

PEG

1.3

PRICE TO SALES

1.1

PRICE TO BOOK

8.4

EV / EBITDA

16.5

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

-$0.52

Next Year EPS Growth Estimate

$0.76

Next Year Revenue Growth Estimate

9.30%

Return on Equity (ROE)

-28.50%

Operating Margin

-1.40%

Debt-to-Equity

1.7

Piotroski F-Score

5

Altman Z-Score

1.4

Return on Invested Capital (ROIC)

-7.70%%

Current Ratio

1.8

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At $1,217M in market cap, ADTN screens optically inexpensive on a 19.9 Forward P/E and 1.1 Price/Sales, but this is not a clean growth story — it is a stressed balance sheet story. The 1.3 PEG Forward implies only moderate growth relative to valuation, hardly a screaming bargain given a -28.50% operating margin and -7.70% ROIC. Most concerning is the Altman Z-Score of 1.4, which places the company firmly in financial distress territory, suggesting non-trivial balance sheet risk. This is not a premium compounder mispriced by the market; it is a cyclical, margin-impaired operator trading at a valuation that assumes stabilization but not failure.

AI Exposure / Tech Reliance

As a Communication Equipment company in the Technology sector, ADTN sits directly in the infrastructure layer that underpins AI data transmission and network expansion. AI-driven data growth structurally increases bandwidth and optical network demand, which should support long-term industry relevance. However, with a -28.50% operating margin, the issue is not demand exposure — it is execution and cost control within that tech cycle.

The Bull Case

A value-oriented GARP investor could justify ownership based on stabilization potential. The 19.9 Forward P/E paired with a 1.3 PEG Forward suggests earnings normalization expectations are already muted, leaving room for upside if margins recover even modestly. A Piotroski F-Score of 5 signals operational mediocrity but not collapse, while a 1.8 Current Ratio indicates adequate short-term liquidity. With Return on Equity at 9.30%, the company is still generating shareholder returns despite negative operating margins, implying non-operating or structural levers that could drive recovery. If management restores profitability, the valuation at 1.1 Price/Sales could rerate meaningfully.

The Bear Case

The bear case is far more visceral. A -28.50% operating margin and -7.70% ROIC indicate that core operations are destroying capital, not compounding it. The Altman Z-Score of 1.4 signals elevated financial distress risk, and the -1.40 Debt/Equity ratio suggests a highly unconventional or strained capital structure. EPS Next Year (Est.) of -$0.52 points to forward earnings deterioration, directly conflicting with the 19.9 Forward P/E narrative. When profitability is negative and balance sheet risk is elevated, a 1.3 PEG is irrelevant — survival, not growth optimization, becomes the key variable.

Market Sentiment & Smart Money

Short Interest %

10.60%

Analyst Consensus

1.88

Average Analyst Price Target

$15.00

Institutional Ownership %

94.50%

1-Year Beta

1.81

Insider Buying % (6 Mo)

2.20%%

Distance to 52-Week High

99.00%%

Distance to 52-Week Low

213.70%%