ScoreWhy is ADT, Inc. ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.62 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.62 times
- The company has been able to generate a Return on Equity (avg) of 8.94% signifying low profitability per unit of shareholders funds
2
Healthy long term growth as Operating profit has grown by an annual rate 42.17%
3
The company has declared Positive results for the last 3 consecutive quarters
- INTEREST COVERAGE RATIO(Q) Highest at 734.16
- OPERATING CASH FLOW(Y) Highest at USD 1,988.43 MM
- ROCE(HY) Highest at 17.13%
4
With ROCE of 11.00%, it has a fair valuation with a 1.30 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 9.86%, its profits have risen by 12.3% ; the PEG ratio of the company is 0.7
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to ADT, Inc. should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is ADT, Inc. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
ADT, Inc.
-20.23%
0.35
27.01%
S&P 500
15.36%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-0.71%
EBIT Growth (5y)
52.00%
EBIT to Interest (avg)
1.46
Debt to EBITDA (avg)
3.62
Net Debt to Equity (avg)
2.13
Sales to Capital Employed (avg)
0.43
Tax Ratio
24.13%
Dividend Payout Ratio
33.07%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
6.00%
ROE (avg)
8.94%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
1.40
EV to EBIT
9.83
EV to EBITDA
4.39
EV to Capital Employed
1.13
EV to Sales
2.51
PEG Ratio
0.35
Dividend Yield
380.80%
ROCE (Latest)
11.54%
ROE (Latest)
17.87%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 2,158.09 MM
ROCE(HY)
Highest at 17.2%
INVENTORY TURNOVER RATIO(HY)
Highest at 14.33 times
NET SALES(Q)
Highest at USD 1,312.29 MM
EPS(Q)
Highest at USD 0.2
-7What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 597.88
DIVIDEND PAYOUT RATIO(Y)
Lowest at 27.36%
DEBT-EQUITY RATIO
(HY)
Highest at 223.06 %
INTEREST(Q)
Highest at USD 123.23 MM
PRE-TAX PROFIT(Q)
Lowest at USD 230.28 MM
Here's what is working for ADT, Inc.
Operating Cash Flow
Highest at USD 2,158.09 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 1,312.29 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
EPS
Highest at USD 0.2
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Inventory Turnover Ratio
Highest at 14.33 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
Highest at USD 416.1 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for ADT, Inc.
Interest Coverage Ratio
Lowest at 597.88 and Fallen
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 123.23 MM
in the last five periods and Increased by 8.62% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Pre-Tax Profit
Lowest at USD 230.28 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Debt-Equity Ratio
Highest at 223.06 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Dividend Payout Ratio
Lowest at 27.36%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Non Operating Income
Highest at USD 0.15 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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