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ADT

DB:541
Snowflake Description

Fair value with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
541
DB
$3B
Market Cap
  1. Home
  2. DE
  3. Commercial Services
Company description

ADT Inc. provides security and automation solutions for homes and businesses in the United States and Canada. The last earnings update was 22 days ago. More info.


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  • ADT has significant price volatility in the past 3 months.
541 Share Price and Events
7 Day Returns
-6.3%
DB:541
-0.5%
DE Commercial Services
2.2%
DE Market
1 Year Returns
-34.9%
DB:541
-32%
DE Commercial Services
-17.2%
DE Market
541 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ADT (541) -6.3% -31% -40.9% -34.9% - -
DE Commercial Services -0.5% -22% -34% -32% -33.4% -44.1%
DE Market 2.2% -15.7% -24% -17.2% -23.3% -27.8%
1 Year Return vs Industry and Market
  • 541 underperformed the Commercial Services industry which returned -32% over the past year.
  • 541 underperformed the Market in Germany which returned -17.2% over the past year.
Price Volatility
541
Industry
5yr Volatility vs Market
Related Companies

Value

 Is ADT undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ADT to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ADT.

DB:541 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:541
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.61
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.607 (1 + (1- 21%) (297.84%))
1.693
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.69
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.693 * 5.44%)
8.82%

Discounted Cash Flow Calculation for DB:541 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ADT is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:541 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.82%)
2020 601.67 Analyst x3 552.90
2021 647.67 Analyst x3 546.93
2022 677.64 Est @ 4.63% 525.85
2023 698.80 Est @ 3.12% 498.32
2024 713.26 Est @ 2.07% 467.40
2025 722.76 Est @ 1.33% 435.23
2026 728.65 Est @ 0.81% 403.21
2027 731.95 Est @ 0.45% 372.21
2028 733.42 Est @ 0.2% 342.72
2029 733.59 Est @ 0.02% 315.02
Present value of next 10 years cash flows $4,459.00
DB:541 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $733.59 × (1 + -0.39%) ÷ (8.82% – -0.39%)
$7,933.37
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,933.37 ÷ (1 + 8.82%)10
$3,406.74
DB:541 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,459.00 + $3,406.74
$7,865.74
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,865.74 / 769.92
$10.22
DB:541 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:541 represents 0.90278x of NYSE:ADT
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.90278x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 10.22 x 0.90278
€9.22
Value per share (EUR) From above. €9.22
Current discount Discount to share price of €3.90
= -1 x (€3.90 - €9.22) / €9.22
57.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ADT is available for.
Intrinsic value
>50%
Share price is €3.9 vs Future cash flow value of €9.22
Current Discount Checks
For ADT to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ADT's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • ADT's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ADT's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ADT's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:541 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-0.57
NYSE:ADT Share Price ** NYSE (2020-03-31) in USD $4.32
Germany Commercial Services Industry PE Ratio Median Figure of 6 Publicly-Listed Commercial Services Companies 95.98x
Germany Market PE Ratio Median Figure of 398 Publicly-Listed Companies 16.76x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ADT.

DB:541 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ADT Share Price ÷ EPS (both in USD)

= 4.32 ÷ -0.57

-7.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ADT is loss making, we can't compare its value to the DE Commercial Services industry average.
  • ADT is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does ADT's expected growth come at a high price?
Raw Data
DB:541 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -7.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
12%per year
Europe Commercial Services Industry PEG Ratio Median Figure of 50 Publicly-Listed Commercial Services Companies 1.12x
Germany Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.18x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for ADT, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on ADT's assets?
Raw Data
DB:541 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $4.17
NYSE:ADT Share Price * NYSE (2020-03-31) in USD $4.32
Germany Commercial Services Industry PB Ratio Median Figure of 9 Publicly-Listed Commercial Services Companies 2.14x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.44x
DB:541 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ADT Share Price ÷ Book Value per Share (both in USD)

= 4.32 ÷ 4.17

1.04x

* Primary Listing of ADT.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ADT is good value based on assets compared to the DE Commercial Services industry average.
X
Value checks
We assess ADT's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. ADT has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is ADT expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ADT expected to grow at an attractive rate?
  • Unable to compare ADT's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare ADT's earnings growth to the Germany market average as it is expected to be loss making during the next 1-3 years.
  • ADT's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:541 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:541 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 12%
DB:541 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 2.2%
Germany Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 23.6%
Germany Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 2.7%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:541 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:541 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 5,469 -405 3
2021-12-31 5,339 1,654 -285 7
2020-12-31 5,153 1,613 -394 7
2020-04-01
DB:541 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 5,126 1,873 -424
2019-09-30 5,013 1,841 -502
2019-06-30 4,861 1,804 -556
2019-03-31 4,708 1,792 -518
2018-12-31 4,582 1,788 -609
2018-09-30 4,502 1,736 179
2018-06-30 4,436 1,811 352
2018-03-31 4,373 1,684 326
2017-12-31 4,316 1,592 343
2017-09-30 4,261 1,498 -381
2017-06-30 4,216 1,413 -410
2017-03-31 3,578 1,056 -497

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ADT is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • ADT's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:541 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from ADT Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:541 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 -0.53 -0.53 -0.53 1.00
2021-12-31 -0.38 -0.08 -0.60 5.00
2020-12-31 -0.52 -0.35 -0.66 5.00
2020-04-01
DB:541 Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -0.57
2019-09-30 -0.67
2019-06-30 -0.74
2019-03-31 -0.69
2018-12-31 -0.81
2018-09-30 0.25
2018-06-30 0.51
2018-03-31 0.49
2017-12-31 0.53
2017-09-30 -0.59
2017-06-30 -0.64
2017-03-31 -0.78

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ADT is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess ADT's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ADT has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has ADT performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ADT's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ADT does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare ADT's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare ADT's 1-year growth to the Europe Commercial Services industry average as it is not currently profitable.
Earnings and Revenue History
ADT's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ADT Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:541 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 5,125.66 -424.15 1,416.53
2019-09-30 5,012.82 -501.63 1,401.14
2019-06-30 4,860.57 -555.54 1,288.62
2019-03-31 4,708.29 -518.19 1,266.49
2018-12-31 4,581.67 -609.16 1,264.45
2018-09-30 4,501.76 178.50 1,191.28
2018-06-30 4,436.40 352.02 1,215.30
2018-03-31 4,372.72 326.07 1,178.42
2017-12-31 4,315.50 342.63 1,209.20
2017-09-30 4,261.12 -380.51 1,220.61
2017-06-30 4,215.67 -409.89 1,237.39
2017-03-31 3,578.44 -497.35 1,081.94
2016-12-31 2,949.77 -536.59 858.90
2015-12-31 549.28 -54.25 159.11
2014-12-31 466.56 -18.49 134.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if ADT has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • ADT used its assets less efficiently than the DE Commercial Services industry average last year based on Return on Assets.
  • It is difficult to establish if ADT improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess ADT's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ADT has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is ADT's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ADT's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ADT's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • ADT's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of ADT's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ADT Company Filings, last reported 3 months ago.

DB:541 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 3,184.37 9,701.71 48.74
2019-09-30 3,711.18 9,874.78 156.21
2019-06-30 3,889.86 9,729.53 43.05
2019-03-31 4,148.03 9,651.51 95.68
2018-12-31 4,224.81 9,980.41 369.70
2018-09-30 4,435.99 9,567.83 256.92
2018-06-30 4,661.84 10,306.44 344.29
2018-03-31 4,723.64 10,284.58 258.20
2017-12-31 3,433.11 10,810.47 122.90
2017-09-30 2,796.70 10,832.87 170.66
2017-06-30 2,839.83 10,814.81 63.99
2017-03-31 3,804.98 10,143.66 75.89
2016-12-31 3,804.98 10,097.94 75.89
2015-12-31 702.90 1,332.04 15.76
2014-12-31
  • ADT's level of debt (304.7%) compared to net worth is high (greater than 40%).
  • Unable to establish if ADT's debt level has increased without past 5-year debt data.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making ADT has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making ADT has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -51.5% per year.
X
Financial health checks
We assess ADT's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ADT has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is ADT's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.24%
Current annual income from ADT dividends. Estimated to be 2.89% next year.
If you bought €2,000 of ADT shares you are expected to receive €65 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ADT's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.65%).
  • ADT's dividend is below the markets top 25% of dividend payers in Germany (4.87%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:541 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Germany Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 322 Stocks 3.8%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.6%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:541 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.11 2.00
2021-12-31 0.13 5.00
2020-12-31 0.13 5.00
2020-04-01
DB:541 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-03-10 0.140 3.227
2020-03-05 0.140 2.481
2019-11-12 0.140 1.906
2019-08-06 0.140 2.350
2019-05-07 0.140 2.268
2019-03-11 0.140 2.127
2018-11-08 0.140 1.914
2018-11-07 0.140 1.808
2018-08-09 0.140 1.663
2018-08-08 0.140 1.565
2018-05-09 0.140 1.687
2018-03-15 0.140 1.623

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, ADT has been paying a dividend for less than 10 years.
  • ADT has only been paying a dividend for 2 years, and since then there has been no growth.
Current Payout to shareholders
What portion of ADT's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.5x coverage).
X
Income/ dividend checks
We assess ADT's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ADT afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ADT has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of ADT's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim DeVries
COMPENSATION $17,942,615
AGE 55
TENURE AS CEO 1.3 years
CEO Bio

Mr. James D. DeVries, also known as Jim, has been the President at ASG Intermediate Holding Corp. since September 2017. Mr. DeVries has been Chief Executive Officer of ADT Inc. since December 1, 2018 and President since September 2017. He serves as Executive Vice President of Protection One, Inc. Mr. DeVries served as The ADT Corporation’s Executive Vice President and Chief Operating Officer since May 2, 2016 until September 2017. Mr. DeVries served as Executive Vice President of Brand Operations at Allstate Insurance Company since December 2014 until May 2016, the second largest personal lines insurer in the United States. During his tenure at Allstate, Mr. DeVries led the operations organization, comprising approximately 7,000 employees in the United States, Northern Ireland, and India, and was responsible for, among other things, customer care centers, outbound and inbound phone sales, procurement, technical support, life underwriting and claims, real estate and administration, and fleet management. From March 2008 to December 2014, Mr. DeVries served as Executive Vice President and Chief Administrative Officer of Allstate, where has was accountable for, among other things, real estate and administration, human resources, and procurement. Prior to joining Allstate in 2008, Mr. DeVries served in various executive and management roles at Principal Financial Group, Ameritech, Quaker Oats Company, and Andrew Corporation. Mr. DeVries is a board member of Amsted Industries Inc., a diversified global manufacturer of industrial components serving primarily the railroad, vehicular and construction and building markets, and a past board member of the Human Resources Management Association of Chicago, the Chicago Public Library Foundation, and the Boys & Girls Clubs of Central Iowa. Mr. DeVries received a Bachelor’s degree from Trinity College, which is now known as Trinity International University, a master’s degree from Loyola University, and a Master of Business Administration from the Kellogg School of Management at Northwestern University.

CEO Compensation
  • Jim's compensation has increased whilst company is loss making.
  • Jim's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the ADT management team in years:

1.1
Average Tenure
51
Average Age
  • The average tenure for the ADT management team is less than 2 years, this suggests a new team.
Management Team

Jim DeVries

TITLE
CEO, President & Director
COMPENSATION
$18M
AGE
55
TENURE
1.3 yrs

Jeff Likosar

TITLE
Executive VP
COMPENSATION
$12M
AGE
47
TENURE
2.1 yrs

Don Young

TITLE
Executive VP of Field Operations & Chief Information Officer
COMPENSATION
$10M
AGE
54

Dan Bresingham

TITLE
Executive Vice President of Commercial
COMPENSATION
$10M
AGE
46

Jamie Rosand Haenggi

TITLE
Chief Customer Officer
COMPENSATION
$9M
AGE
49

Bob Kupbens

TITLE
President and Chief Innovation & Product Officer
TENURE
0.3 yrs

Jim Boyce

TITLE
President & Chief Business Development Officer
AGE
61
TENURE
0.1 yrs

Zachary Susil

TITLE
VP, Controller & Chief Accounting Officer
AGE
36
TENURE
1 yrs

Jason Smith

TITLE
Senior Vice President of Finance & Investor Relations

David Smail

TITLE
Executive VP
AGE
53
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the ADT board of directors in years:

4.3
Average Tenure
48
Average Age
  • The tenure for the ADT board of directors is about average.
Board of Directors

Marc Becker

TITLE
Chairman
AGE
47

Jim DeVries

TITLE
CEO, President & Director
COMPENSATION
$18M
AGE
55
TENURE
1.4 yrs

Matt Winter

TITLE
Independent Director
COMPENSATION
$193K
AGE
62
TENURE
2.1 yrs

Matt Nord

TITLE
Director
AGE
40
TENURE
4.3 yrs

Reed Rayman

TITLE
Director
AGE
33
TENURE
4.3 yrs

Eric Press

TITLE
Director
AGE
53
TENURE
4.3 yrs

Lee Solomon

TITLE
Director
AGE
47
TENURE
4.3 yrs

Stephanie Drescher

TITLE
Director
AGE
46
TENURE
3.3 yrs

David Ryan

TITLE
Director
AGE
49
TENURE
4.3 yrs

Tracey Griffin

TITLE
Independent Director
COMPENSATION
$114K
AGE
54
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess ADT's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ADT has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

ADT Inc. provides security and automation solutions for homes and businesses in the United States and Canada. It provides a range of fire detection, fire suppression, video surveillance, and access control systems to residential, commercial, and multi-site customers. The company primarily offers monitored security and automation solutions, including the installation and monitoring of security and premises automation systems designed to detect intrusion, control access, sense movement, smoke, fire, carbon monoxide, flooding, temperature, and other environmental conditions and hazards; and address personal emergencies such as injuries, medical emergencies, or incapacitation. It also provides interactive solutions that allow customers to use their smart phones, tablets, and laptops to arm and disarm their security systems, adjust lighting or thermostat levels, view real-time video of their premises, and program customizable schedules for the management of a range of smart home products. In addition, the company offers professional monitoring of third-party devices by enabling other companies to integrate solutions into its monitoring and billing platform. It provides its products under the ADT, ADT Pulse, Protection 1, ADT Commercial, and Blue by ADT names. As of December 31, 2019, ADT Inc. operated through a network of approximately 200 sales and service offices, 9 underwriter laboratories listed monitoring centers, 13 customer and field support locations, two national sales call centers, and two regional distribution centers. The company was formerly known as Prime Security Services Parent, Inc. and changed its name to ADT Inc. in September 2017. ADT Inc. was founded in 1874 and is headquartered in Boca Raton, Florida.

Details
Name: ADT Inc.
541
Exchange: DB
Founded: 1874
$3,026,723,003
769,923,434
Website: http://www.adt.com
Address: ADT Inc.
1501 Yamato Road,
Boca Raton,
Florida, 33431,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ADT Common Stock New York Stock Exchange US USD 19. Jan 2018
DB 541 Common Stock Deutsche Boerse AG DE EUR 19. Jan 2018
Number of employees
Current staff
Staff numbers
17,500
ADT employees.
Industry
Security and Alarm Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/01 09:30
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/03/31
Last earnings filing: 2020/03/10
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.