ADT Inc.

Valuation Analysis

About the Company

ADT Inc. provides security, interactive, and smart home solutions in the United States. The company offers burglar and life safety alarms, smart security cameras, smart home automation systems, and video surveillance systems to detect intrusion; control access; sense movement, smoke, fire, carbon monoxide, leaks, temperature, and other environmental conditions and hazards; and address personal medical emergencies, such as injuries or unanticipated falls. It also provides routine maintenance and installation services for upgraded or additional equipment; and personal emergency response system products and services to sustain independent living, detect when a fall occurs, and provide protection while on the go with geolocation capability. In addition, the company offers ADT+ app, an interact

ADT Inc. Stock at a Glance

ADT Inc. (ADT) is currently trading at $6.80 with a market capitalization of $5.2B. The trailing P/E ratio stands at 8.95x, with a forward P/E of 7.02x. The 52-week range spans from $6.25 to $8.94; the current price is 23.9% below the yearly high. Year-over-year revenue growth stands at +0.9%. The net profit margin stands at 12.14%.

💰 Dividend

ADT Inc. pays an annual dividend of $0.22 per share, representing a yield of 3.24%. The payout ratio stands at 28.95%.

📊 Analyst Rating

5 analysts rate ADT Inc. (ADT) on consensus: None. The average price target is $8.16, implying +20% from the current price. Analyst price targets range from $7.00 to $9.00.

ADT Inc.: The Investment Case in Detail

ADT Inc. (ADT) operates in the Industrials — specifically Security & Protection Services — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 26.4% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. With a gross margin near 80.82%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue growth has slowed to just 0.9%, which is below nominal GDP — the business is no longer outgrowing the broader economy. The debt-to-equity ratio of 204.43% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn.

Valuation in Context

The EV/EBITDA multiple of 4.77x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 7.02x is meaningfully below the trailing 8.95x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The dividend yield near 3.24% combined with a payout ratio of 28.95% leaves room for further hikes — a track record of consecutive raises is a strong income signal.
• The analyst consensus price target implies 20% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to market-like volatility, elevated short interest (6.73%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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