A Business at a Glance
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ADT Inc.
ADT
$7.2B
Mkt Cap
$7.04
+3.23%
ADT Inc. (ADT) has a current P/E ratio of 10.5, compared to its historical median P/E of 13.2. The stock is currently considered Fair based on its historical valuation range.
ADT Inc. (ADT) has a 5-year average return on invested capital (ROIC) of 5.5%. This is below average and may indicate limited pricing power.
Yes, ADT Inc. (ADT) pays a dividend with a trailing twelve-month yield of 3.13%.
Based on historical P/E analysis, ADT Inc. (ADT) appears fair. The current P/E of 10.5 is 21% below its historical median of 13.2. The estimated fair value CAGR (P/E method) is 72.9%.
ADT Inc. (ADT) operates in the Services-Detective, Guard & Armored Car Services industry, within the Industrials sector.
ADT Inc. (ADT) reported annual revenue of $5.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
ADT Inc. (ADT) has a net profit margin of 11.6%. This is a healthy margin.
ITEM 1. BUSINESS. TABLE OF CONTENTS •Company Overview •Key Business Developments •Segment and Geographic Information •Products and Services •Our Market •Resources Material to our Business •Government Regulation and Other Regulatory Matters •Human Capital and Workplace Initiatives •Available Information COMPANY OVERVIEW Our Business ADT Inc., together with its wholly-owned subsidiaries (collectively, the “Company,” “we,” “our,” “us,” and “ADT”), is a leading provider of security, interactive, and smart home solutions serving residential and small business customers in the United States (“U.S.”). Our mission is to empower people to protect and connect what matters most through innovative offerings, unrivaled safety, and a premium experience because we believe that everyone deserves to feel safe. We are strategically evolving toward a platform-centric model focused on integrated home intelligence.
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Monitoring and related services | $4.35B | $4.59B | $4.18B | $4.29B | $4.35B | 42% |
Recurring monthly revenue | — | $3.94B | $4.07B | $4.18B | $4.22B | 41% |
Security installation, product, and other | $912M | $1.02B | $474M | $605M | $775M | 8% |
Installation revenue | — | $94M | $172M | $259M | $416M | 4% |
Amortization of deferred subscriber acquisition revenue | — | $235M | $302M | $346M | $358M | 3% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 5.1B | 5.1B | 4.9B | 4.7B | 4.4B | 4.2B |
| Net Income | 624M | 596M | 501M | 463M | 133M | -341M |
| EPS | $0.00 | - | - | - | - | - |
| Free Cash Flow | 1.9B | 1.7B | 1.7B | 1.5B | 1.7B | 1.5B |
| ROIC | 8.4% | 8.3% | 8.0% | 7.1% | 4.4% | -0.1% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 2.02 | 2.06 | 2.05 | 2.09 | 2.92 | 3.03 |
| Dividends/Share | $0.00 | $0.22 | $0.22 | $0.14 | $0.14 | - |
| Operating Income | 1.3B | 1.3B | 1.2B | 1.2B | 725M | -15M |
| Operating Margin | 25.6% | 25.5% | 24.7% | 25.3% | 16.5% | -0.4% |
| ROE | 16.4% | 15.7% | 13.2% | 12.9% | 4.0% | -10.8% |
| Shares Outstanding | 0M | - | - | - | - | - |
| Metric | 2016 | 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||
| Revenue | 2.9B | 4.3B | 4.6B | 5.1B | 5.3B | 4.2B | 4.4B | 4.7B | 4.9B | 5.1B | 5.1B |
| Gross Margin | N/A | 79.2% | 77.3% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 859M | 1.2B | 1.2B | 1.4B | 1.7B | 1.5B | 1.3B | 1.4B | 1.5B | 1.5B | 1.5B |
| EBIT | -229M | 282M | 278M | 196M | 41M | -15M | 725M | 1.2B | 1.2B | 1.3B | 1.3B |
| Op. Margin | -7.8% | 6.5% | 6.1% | 3.8% | 0.8% | -0.4% | 16.5% | 25.3% | 24.7% | 25.5% | 25.6% |
| Net Income | -537M | 343M | -609M | -424M | -632M | -341M | 133M | 463M | 501M | 596M | 624M |
| Net Margin | -18.2% | 7.9% | -13.3% | -8.3% | -11.9% | -8.1% | 3.0% | 10.0% | 10.2% | 11.6% | 12.1% |
| Non-Recurring | 54M | 65M | 91M | 81M | 120M | 0 | 189M | 496M | 0 | 0 | 0 |
| Returns on Capital | |||||||||||
| ROIC | -28.7% | N/A | 2.0% | 1.5% | 0.3% | -0.1% | 4.4% | 7.1% | 8.0% | 8.3% | 8.4% |
| ROE | N/A | N/A | -14.4% | -11.4% | -20.3% | -10.8% | 4.0% | 12.9% | 13.2% | 15.7% | 16.4% |
| ROA | -67.1% | N/A | -3.5% | -2.5% | -3.9% | -2.1% | 0.8% | 2.7% | 3.1% | 3.7% | 3.9% |
| Cash Flow | |||||||||||
| Op. Cash Flow | 618M | 1.6B | 1.8B | 1.9B | 1.4B | 1.6B | 1.9B | 1.7B | 1.9B | 1.9B | 2.1B |
| Free Cash Flow | 539M | 1.5B | 1.7B | 1.7B | 1.2B | 1.5B | 1.7B | 1.5B | 1.7B | 1.7B | 1.9B |
| Owner Earnings | -620M | -283M | -278M | -202M | -643M | -251M | 222M | 271M | 493M | 462M | 635M |
| CapEx | 78M | 131M | 127M | 159M | 157M | 168M | 177M | 176M | 164M | 176M | 179M |
| Maint. CapEx | 1.2B | 1.9B | 1.9B | 2.0B | 1.9B | 1.8B | 1.6B | 1.3B | 1.3B | 1.4B | 1.4B |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 1.2B | 1.9B | 1.9B | 2.0B | 1.9B | 1.8B | 1.6B | 1.3B | 1.3B | 1.4B | 1.4B |
| CapEx/OCF | N/A | N/A | 7.1% | 8.5% | 11.5% | 10.2% | 9.4% | 10.6% | 8.7% | 9.3% | 8.7% |
| Capital Allocation | |||||||||||
| Dividends Paid | 0 | 750M | 79M | 565M | 109M | 116M | 127M | 129M | 182M | 187M | 183M |
| Dividend Yield | N/A | N/A | 1.5% | 14.0% | 2.1% | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 150M | 4K | 0 | 1.2B | 0 | 241M | 607M | 326M |
| Buyback Yield | N/A | N/A | N/A | 3.0% | 0.0% | N/A | 16.4% | N/A | 3.7% | 8.4% | 0.0% |
| Stock-Based Comp | 4.6M | 11M | 135M | 86M | 96M | 61M | 67M | 51M | 49M | 55M | 48M |
| Debt Repayment | 1.4B | 725M | 700M | 3.8B | 3.0B | 1.2B | 605M | 3.0B | 1.2B | 3.0B | 3.0B |
| Balance Sheet | |||||||||||
| Net Debt | 6.0B | N/A | 9.4B | 9.8B | 9.3B | 9.7B | 9.5B | 7.8B | 7.6B | 7.7B | 7.5B |
| Cash & Equiv. | 76M | N/A | 363M | 49M | 205M | 24M | 257M | 15M | 96M | 81M | 175M |
| Long-Term Debt | 6.0B | N/A | 9.9B | 9.6B | 9.4B | 9.6B | 8.9B | 7.5B | 7.5B | 7.4B | 7.4B |
| Debt/Equity | N/A | N/A | 2.37 | 3.08 | 3.17 | 3.03 | 2.92 | 2.09 | 2.05 | 2.06 | 2.02 |
| Interest Coverage | -0.5 | 0.4 | 0.4 | 0.3 | 0.1 | -0.0 | 2.6 | 2.0 | 2.7 | 2.8 | 435.5 |
| Equity | N/A | N/A | 4.2B | 3.2B | 3.0B | 3.2B | 3.4B | 3.8B | 3.8B | 3.8B | 3.8B |
| Total Assets | 800M | N/A | 17.2B | 16.1B | 16.1B | 16.9B | 17.8B | 16.0B | 16.1B | 15.8B | 15.9B |
| Total Liabilities | N/A | N/A | 13.0B | 12.9B | 13.1B | 13.6B | 14.4B | 12.2B | 12.3B | 12.0B | 12.1B |
| Intangibles | N/A | N/A | N/A | 6.7B | 5.9B | 5.4B | 4.9B | 4.9B | 4.9B | 4.8B | 4.8B |
| Retained Earnings | N/A | N/A | -1.7B | -2.7B | -3.5B | -4.0B | -3.9B | -3.6B | -3.3B | -2.9B | -2.8B |
| Working Capital | N/A | N/A | -158M | -494M | -329M | -711M | -939M | -476M | -259M | -67M | -167M |
| Current Assets | N/A | N/A | 854M | 625M | 967M | 993M | 1.7B | 1.0B | 1.0B | 946M | 899M |
| Current Liabilities | N/A | N/A | 1.0B | 1.1B | 1.3B | 1.7B | 2.7B | 1.5B | 1.3B | 1.0B | 1.1B |
| Per Share Data | |||||||||||
| EPS | -0.84 | 0.53 | -0.81 | -0.57 | -0.82 | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Owner EPS | -0.97 | -0.44 | -0.37 | -0.27 | -0.83 | N/A | N/A | N/A | N/A | N/A | N/A |
| Book Value | N/A | N/A | 5.62 | 4.28 | 3.94 | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Cash Flow/Share | 0.97 | 2.46 | 2.38 | 2.52 | 1.77 | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Dividends/Share | 0.00 | 1.17 | 0.14 | 0.84 | 0.14 | N/A | 0.14 | 0.14 | 0.22 | 0.22 | 0.00 |
| Shares Out. | 638.8M | 646.5M | 752.0M | 744.1M | 771.0M | N/A | N/A | N/A | N/A | N/A | 0.0M |
| Valuation | |||||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | N/A | 55.2 | 13.4 | 13.0 | 12.1 | N/A |
| P/FCF | N/A | N/A | 2.2 | 3.0 | 4.5 | N/A | N/A | N/A | N/A | N/A | N/A |
| EV/EBIT | N/A | N/A | 47.8 | 74.8 | 360.0 | N/A | 37.1 | 12.2 | 11.8 | 11.5 | 5.7 |
| Price/Book | N/A | N/A | N/A | N/A | 1.8 | 2.0 | 2.2 | 1.6 | 1.7 | 1.9 | N/A |
| Price/Sales | N/A | N/A | 1.1 | 0.8 | 1.0 | 1.3 | 1.2 | 1.3 | 1.3 | 1.4 | N/A |
| FCF Yield | N/A | N/A | 45.7% | 33.9% | 22.0% | 23.0% | 23.4% | 23.8% | 26.3% | 23.6% | N/A |
| Market Cap | N/A | N/A | 3.6B | 5.1B | 5.5B | 6.4B | 7.3B | 6.2B | 6.5B | 7.2B | 0 |
| Avg. Price | N/A | N/A | 6.89 | 5.43 | 6.66 | 8.17 | 7.09 | 6.28 | 6.74 | 8.03 | 7.04 |
| Year-End Price | N/A | N/A | 4.83 | 6.80 | 7.14 | 7.76 | 8.28 | 6.45 | 6.78 | 8.14 | 7.04 |
ADT Inc. passes 3 of 9 quality checks, indicating weak fundamentals.
ADT Inc. trades at 10.5x trailing earnings, compared to its 15-year median P/E of 13.2x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 3.2x vs a median of 3.0x. The company's 5-year average ROIC is 5.5%. Total shareholder yield (dividends) is 3.1%. At current prices, the estimated annualized return to fair value is +0.4%.
ADT Inc. (ADT) generated $1.7 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ADT Inc. (ADT) has a debt-to-equity ratio of 2.06. This indicates higher leverage, which may increase financial risk.
ADT Inc. (ADT) has a return on equity (ROE) of 15.7%. This indicates the company generates strong returns for shareholders.
The Ledger Terminal provides 10 years of financial data for ADT Inc. (ADT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.