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ADTRAN

Nasdaq:ADTN
Snowflake Description

Adequate balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ADTN
Nasdaq
$461M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

ADTRAN, Inc. provides networking and communications equipment worldwide. The last earnings update was 5 days ago. More info.


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ADTN Share Price and Events
7 Day Returns
4.9%
NasdaqGS:ADTN
4.7%
US Communications
0.9%
US Market
1 Year Returns
-31.8%
NasdaqGS:ADTN
1.1%
US Communications
10.5%
US Market
ADTN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ADTRAN (ADTN) 4.9% 6.5% -13.2% -31.8% -51.9% -49.6%
US Communications 4.7% 5.9% -3.8% 1.1% 42.8% 65.8%
US Market 0.9% 5.2% 5.4% 10.5% 40.1% 45%
1 Year Return vs Industry and Market
  • ADTN underperformed the Communications industry which returned 1.1% over the past year.
  • ADTN underperformed the Market in United States of America which returned 10.5% over the past year.
Price Volatility
ADTN
Industry
5yr Volatility vs Market

Value

 Is ADTRAN 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 ADTRAN 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 ADTRAN.

NasdaqGS:ADTN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-09-30) in USD $ 0.36
Payout Ratio Company Filings (2019-09-30) 4467.8%
Discount Rate (Cost of Equity) See below 10.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 NasdaqGS:ADTN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.131 (1 + (1- 21%) (9.62%))
1.248
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.25
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.248 * 5.96%)
10.17%

Discounted Cash Flow Calculation for NasdaqGS:ADTN using Dividend Discount Model Model

The calculations below outline how an intrinsic value for ADTRAN is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

NasdaqGS:ADTN Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= $0.36 / (10.17% - 2.73%)
$3.82
NasdaqGS:ADTN Discount to Share Price
Calculation Result
Value per share (USD) From above. $3.82
Current discount Discount to share price of $9.63
= -1 x ($9.63 - $3.82) / $3.82
-152.4%

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

  • The current share price of ADTRAN is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 ADTRAN's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ADTRAN's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ADTN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $-1.04
NasdaqGS:ADTN Share Price ** NasdaqGS (2019-11-08) in USD $9.63
United States of America Communications Industry PE Ratio Median Figure of 30 Publicly-Listed Communications Companies 24.34x
United States of America Market PE Ratio Median Figure of 2,915 Publicly-Listed Companies 18.21x

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

** Primary Listing of ADTRAN.

NasdaqGS:ADTN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ADTN Share Price ÷ EPS (both in USD)

= 9.63 ÷ -1.04

-9.24x

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

  • ADTRAN is loss making, we can't compare its value to the US Communications industry average.
  • ADTRAN is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does ADTRAN's expected growth come at a high price?
Raw Data
NasdaqGS:ADTN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -9.24x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
54.1%per year
United States of America Communications Industry PEG Ratio Median Figure of 19 Publicly-Listed Communications Companies 1.44x
United States of America Market PEG Ratio Median Figure of 2,014 Publicly-Listed Companies 1.47x

*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 ADTRAN, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on ADTRAN's assets?
Raw Data
NasdaqGS:ADTN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $8.26
NasdaqGS:ADTN Share Price * NasdaqGS (2019-11-08) in USD $9.63
United States of America Communications Industry PB Ratio Median Figure of 61 Publicly-Listed Communications Companies 1.85x
United States of America Market PB Ratio Median Figure of 5,041 Publicly-Listed Companies 1.74x
NasdaqGS:ADTN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ADTN Share Price ÷ Book Value per Share (both in USD)

= 9.63 ÷ 8.26

1.17x

* Primary Listing of ADTRAN.

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

  • ADTRAN is good value based on assets compared to the US Communications industry average.
X
Value checks
We assess ADTRAN'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 Communications 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 Communications industry average (and greater than 0)? (1 check)
  5. ADTRAN has a total score of 1/6, 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 ADTRAN 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
54.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ADTRAN expected to grow at an attractive rate?
  • Unable to compare ADTRAN'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 ADTRAN's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
  • ADTRAN's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ADTN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ADTN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 54.1%
NasdaqGS:ADTN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 0.2%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 12%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*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
NasdaqGS:ADTN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month 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.
NasdaqGS:ADTN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 546 20 -13 3
2020-12-31 506 -12 -21 7
2019-12-31 526 43 -49 7
2019-11-10
NasdaqGS:ADTN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 554 17 -50
2019-06-30 581 14 4
2019-03-31 552 19 -8
2018-12-31 529 55 -19
2018-09-30 516 -16 -22
2018-06-30 561 -10 -14
2018-03-31 617 -5 6
2017-12-31 667 -42 24
2017-09-30 703 36 43
2017-06-30 687 42 39
2017-03-31 665 35 37
2016-12-31 637 42 35

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ADTRAN is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • ADTRAN's revenue is expected to grow by 0.2% 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
NasdaqGS:ADTN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from ADTRAN Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ADTN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 -0.05 0.17 -0.27 2.00
2020-12-31 -0.03 0.27 -0.43 3.00
2019-12-31 -1.10 -1.02 -1.17 2.00
2019-11-10
NasdaqGS:ADTN Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 -1.04
2019-06-30 0.08
2019-03-31 -0.16
2018-12-31 -0.40
2018-09-30 -0.46
2018-06-30 -0.28
2018-03-31 0.13
2017-12-31 0.50
2017-09-30 0.88
2017-06-30 0.81
2017-03-31 0.76
2016-12-31 0.72

*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.
  • Unable to establish if ADTRAN will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess ADTRAN'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 United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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.
ADTRAN has a total score of 0/6, 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 ADTRAN 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 ADTRAN's growth in the last year to its industry (Communications).
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.
  • ADTRAN does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare ADTRAN's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare ADTRAN's 1-year growth to the US Communications industry average as it is not currently profitable.
Earnings and Revenue History
ADTRAN'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 ADTRAN Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ADTN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 554.36 -49.81 129.95 124.89
2019-06-30 580.61 3.91 129.06 124.38
2019-03-31 552.26 -7.76 127.00 124.12
2018-12-31 529.28 -19.34 123.87 124.55
2018-09-30 516.03 -22.01 124.29 123.19
2018-06-30 560.80 -13.70 128.65 126.90
2018-03-31 617.43 6.38 132.14 129.73
2017-12-31 666.90 23.84 135.23 130.67
2017-09-30 703.05 42.52 138.65 131.19
2017-06-30 686.83 39.04 137.65 129.57
2017-03-31 664.86 36.87 135.73 127.29
2016-12-31 636.78 35.23 131.69 124.91
2016-09-30 612.81 33.38 127.71 122.03
2016-06-30 602.00 28.03 124.01 122.63
2016-03-31 599.43 20.34 123.26 126.83
2015-12-31 600.06 18.65 123.54 129.88
2015-09-30 605.03 22.22 125.00 133.29
2015-06-30 609.85 26.48 127.42 134.05
2015-03-31 625.84 38.33 129.08 132.24
2014-12-31 630.01 44.62 131.96 132.26
2014-09-30 645.12 47.17 133.45 132.49
2014-06-30 659.63 52.05 133.81 131.71
2014-03-31 645.74 47.51 132.70 131.10
2013-12-31 641.74 45.79 129.37 131.06
2013-09-30 622.41 37.92 127.48 131.23
2013-06-30 607.13 30.98 128.79 134.27
2013-03-31 628.89 42.19 133.58 133.67
2012-12-31 620.61 47.26 134.52 125.95

*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 ADTRAN has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if ADTRAN has efficiently used its assets last year compared to the US Communications industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if ADTRAN 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 ADTRAN'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 Communications 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.
ADTRAN 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 ADTRAN'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 ADTRAN's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ADTRAN is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ADTRAN's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of ADTRAN'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 covered by short term assets, assets are 13.7x 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 ADTRAN Company Filings, last reported 1 month ago.

NasdaqGS:ADTN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 394.96 25.60 125.16
2019-06-30 445.98 25.60 137.71
2019-03-31 443.55 25.60 140.41
2018-12-31 446.28 24.60 108.75
2018-09-30 463.60 25.60 100.09
2018-06-30 459.63 25.60 106.39
2018-03-31 475.74 25.60 99.03
2017-12-31 497.91 25.60 102.56
2017-09-30 504.17 26.80 159.64
2017-06-30 483.36 26.80 136.13
2017-03-31 482.21 26.80 125.02
2016-12-31 479.52 26.80 123.08
2016-09-30 478.20 27.90 121.81
2016-06-30 473.72 27.90 121.78
2016-03-31 472.39 27.90 120.91
2015-12-31 480.16 27.90 118.95
2015-09-30 477.64 28.80 125.77
2015-06-30 495.40 28.80 141.34
2015-03-31 542.67 28.80 165.77
2014-12-31 549.01 28.80 120.36
2014-09-30 566.38 30.00 114.00
2014-06-30 572.06 30.00 104.83
2014-03-31 602.68 30.00 141.98
2013-12-31 604.61 46.20 164.06
2013-09-30 612.65 46.50 190.95
2013-06-30 609.69 46.00 190.14
2013-03-31 673.13 46.00 247.88
2012-12-31 692.41 46.00 228.94
  • ADTRAN's level of debt (6.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (5.3% vs 6.5% today).
  • Debt is well covered by operating cash flow (65.8%, greater than 20% of total debt).
  • Unable to confirm if the interest payments on ADTRAN's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess ADTRAN'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. ADTRAN has a total score of 4/6, 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 ADTRAN'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
3.74%
Current annual income from ADTRAN dividends. Estimated to be 3.74% next year.
If you bought $2,000 of ADTRAN shares you are expected to receive $75 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?
  • ADTRAN's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • ADTRAN's dividend is above the markets top 25% of dividend payers in United States of America (3.66%).
Upcoming dividend payment

Purchase ADTRAN before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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
NasdaqGS:ADTN 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
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1944 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

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

NasdaqGS:ADTN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.36 1.00
2020-12-31 0.36 2.00
2019-12-31 0.36 2.00
2019-11-10
NasdaqGS:ADTN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-11-05 0.360 3.826
2019-10-31 0.360 3.896
2019-09-20 0.360 3.546
2019-07-18 0.360 3.282
2019-05-07 0.360 2.267
2019-04-18 0.360 2.095
2019-02-28 0.360 2.482
2019-01-24 0.360 2.482
2018-11-06 0.360 2.985
2018-10-17 0.360 2.606
2018-08-03 0.360 2.101
2018-07-18 0.360 2.207
2018-04-18 0.360 2.412
2018-02-23 0.360 2.298
2018-01-17 0.360 2.207
2017-11-07 0.360 1.695
2017-10-18 0.360 1.690
2017-07-19 0.360 1.582
2017-05-03 0.360 1.782
2017-04-19 0.360 1.803
2017-02-24 0.360 1.732
2017-01-18 0.360 1.650
2016-10-19 0.360 1.736
2016-08-05 0.360 1.938
2016-07-13 0.360 1.989
2016-05-04 0.360 1.920
2016-04-13 0.360 1.842
2016-02-24 0.360 1.866
2016-01-20 0.360 1.959
2015-11-04 0.360 2.171
2015-10-14 0.360 2.408
2015-08-05 0.360 2.338
2015-07-15 0.360 2.210
2015-05-06 0.360 2.156
2015-04-22 0.360 2.210
2015-02-24 0.360 1.854
2015-01-21 0.360 1.607
2014-10-14 0.360 1.720
2014-07-15 0.360 1.655
2014-04-16 0.360 1.618
2014-01-22 0.360 1.413
2013-10-09 0.360 1.431
2013-07-08 0.360 1.385
2013-04-09 0.360 1.596
2013-01-15 0.360 1.737
2012-10-09 0.360 1.967
2012-07-10 0.360 1.764
2012-04-10 0.360 1.214
2012-01-17 0.360 1.073
2011-10-11 0.360 1.153
2011-07-12 0.360 1.184
2011-04-12 0.360 0.893
2011-01-18 0.360 0.829
2010-10-13 0.360 1.060
2010-07-14 0.360 1.109
2010-04-14 0.360 1.314
2010-01-20 0.360 1.490
2009-10-13 0.360 1.575
2009-07-15 0.360 1.516
2009-04-15 0.360 1.754
2009-01-21 0.360 2.295

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

  • Dividends per share have been stable in the past 10 years.
  • No dividend growth in 10 years.
Current Payout to shareholders
What portion of ADTRAN'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 not well covered by earnings (0.5x coverage).
X
Income/ dividend checks
We assess ADTRAN's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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 ADTRAN afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ADTRAN has a total score of 3/6, 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 ADTRAN'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
Tom Stanton
COMPENSATION $1,998,293
AGE 54
TENURE AS CEO 14.2 years
CEO Bio

Mr. Thomas R. Stanton, also known as Tom, has been the Chief Executive Officer of Adtran Inc. since September 10, 2005. Mr. Stanton serves as Director of Birmingham Branch of Federal Reserve Bank of Atlanta. He served as Senior Vice President of Adtran Inc., from 2001 to September 10, 2005 and General Manager of Carrier Networks from 1999 to September 10, 2005. Mr. Stanton served as Vice President and General Manager of Carrier Networks, a Division of ADTRAN Inc., from 1999 to 2001; Vice President of Carrier Networks Marketing from 1995 to 1999; Vice President of Marketing & Engineering of Transcrypt International Inc. since 1995; Senior Director, Marketing of E.F. Johnson Company, from 1994 to 1995; Director of Marketing, E.F. Johnson Company, from 1993 to 1994. Mr. Stanton has been Chairman of ADTRAN Inc. since April 27, 2007. He served as Chairman of the Federal Reserve Bank of Atlanta'sBirmingham Branch from January, 2013 until December, 2014. He has been Director of ADTRAN, Inc. since September 10, 2005. He has been an Independent Director of BancorpSouth, Inc. He has been an Independent Director of BancorpSouth Bank since October 28, 2015. He served as the Board of Directors for a number of technology companies, the Chamber of Commerce of Huntsville/Madison County and as Chairman for the Telecommunications Industry Association (TIA). He is also a Board member for the Economic Development Partnership of Alabama (EDPA). Mr. Stanton holds a Bachelor of Science degree in Computer Engineering from Auburn University.

CEO Compensation
  • Tom's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Tom's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

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

3.5
Average Tenure
54.5
Average Age
  • The tenure for the ADTRAN management team is about average.
Management Team

Tom Stanton

TITLE
Chairman & CEO
COMPENSATION
$2M
AGE
54
TENURE
14.2 yrs

Mike Foliano

TITLE
Senior VP of Finance
COMPENSATION
$607K
AGE
58
TENURE
0.7 yrs

Jay Wilson

TITLE
Chief Revenue Officer
COMPENSATION
$638K
AGE
48
TENURE
13.3 yrs

Ron Centis

TITLE
Senior Vice President of Global Operations
TENURE
0.7 yrs

Ray Harris

TITLE
Chief Information Officer
AGE
55
TENURE
1.8 yrs

Gary Bolton

TITLE
Vice President of Global Marketing
TENURE
10.8 yrs

Ronan Kelly

TITLE
Chief Technology Officer of The EMEA & APAC Regions
TENURE
5.1 yrs

Jeff McInnis

TITLE
Senior Vice President of Subscriber Solutions & Experience
TENURE
0.7 yrs

Dan Whalen

TITLE
Chief Product Officer
AGE
51
TENURE
0.2 yrs

Robert Fredrickson

TITLE
Vice President of Carrier Networks Sales
COMPENSATION
$566K
AGE
68
TENURE
23.8 yrs
Board of Directors Tenure

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

4.1
Average Tenure
57
Average Age
  • The tenure for the ADTRAN board of directors is about average.
Board of Directors

Tom Stanton

TITLE
Chairman & CEO
COMPENSATION
$2M
AGE
54
TENURE
12.6 yrs

H. Huss

TITLE
Lead Independent Director
COMPENSATION
$195K
AGE
68
TENURE
4.5 yrs

Kathryn Walker

TITLE
Independent Director
COMPENSATION
$185K
AGE
59
TENURE
5.5 yrs

Jackie Rice

TITLE
Independent Director
COMPENSATION
$180K
AGE
47
TENURE
3.3 yrs

Balan Nair

TITLE
Independent Director
COMPENSATION
$188K
AGE
53
TENURE
12.8 yrs

Tony Melone

TITLE
Independent Director
COMPENSATION
$180K
AGE
58
TENURE
3.8 yrs

Greg McCray

TITLE
Independent Director
COMPENSATION
$180K
AGE
56
TENURE
2.5 yrs

Roy Nichols

TITLE
Director Emeritus
COMPENSATION
$180K
AGE
80
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by ADTRAN individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
07. Nov 19 Buy Balan Nair Individual 07. Nov 19 07. Nov 19 10,000 $9.19 $91,883
17. Oct 19 Sell Roger Shannon Individual 16. Oct 19 16. Oct 19 -6,200 $9.71 $-60,227
25. Apr 19 Sell Roger Shannon Individual 23. Apr 19 23. Apr 19 -5,701 $17.65 $-100,597
25. Apr 19 Sell James Wilson Individual 23. Apr 19 23. Apr 19 -3,269 $17.61 $-57,554
X
Management checks
We assess ADTRAN'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. ADTRAN 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

It Might Be Better To Avoid ADTRAN, Inc.'s (NASDAQ:ADTN) Upcoming 0.8% Dividend

As a result, readers should always check whether ADTRAN has been able to grow its dividends, or if the dividend might be cut. … View our latest analysis for ADTRAN Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. … As ADTRAN's dividend was not well covered by either earnings or cash flow, we would be concerned that this dividend could be at risk over the long term.

Simply Wall St -

Does ADTRAN (NASDAQ:ADTN) Have A Healthy Balance Sheet?

What we care about is avoiding the permanent loss of capital.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. … ADTRAN boasts net cash, so it's fair to say it does not have a heavy debt load! … So taking that on face value, and considering the cash, we don't think its very risky in the near term.

Simply Wall St -

ADTRAN, Inc. (NASDAQ:ADTN) Insiders Have Been Selling

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for ADTRAN The Last 12 Months Of Insider Transactions At ADTRAN The Director Emeritus, Roy Nichols, made the biggest insider sale in the last 12 months. … In the last twelve months insiders netted US$395k for 21455 shares sold. … Insiders at ADTRAN Have Sold Stock Recently Over the last three months, we've seen significant insider selling at ADTRAN.

Simply Wall St -

Does The ADTRAN, Inc. (NASDAQ:ADTN) Share Price Fall With The Market?

In finance, Beta is a measure of volatility. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful.

Simply Wall St -

If You Had Bought ADTRAN (NASDAQ:ADTN) Stock Five Years Ago, You'd Be Sitting On A 36% Loss, Today

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Over five years ADTRAN's earnings per share dropped significantly, falling to a loss, with the share price also lower. … Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change.

Simply Wall St -

How Much Did ADTRAN, Inc.'s (NASDAQ:ADTN) CEO Pocket Last Year?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Tom Stanton's Compensation Compare With Similar Sized Companies. … is worth US$655m, and total annual CEO compensation is US$4.4m.

Simply Wall St -

Why ADTRAN, Inc. (NASDAQ:ADTN) Could Have A Place In Your Portfolio

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on ADTRAN, Inc. … (NASDAQ:ADTN) due to its excellent fundamentals in more than one area.

Simply Wall St -

A Look At The Intrinsic Value Of ADTRAN, Inc. (NASDAQ:ADTN)

by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

At US$14.04, Is It Time To Put ADTRAN, Inc. (NASDAQ:ADTN) On Your Watch List?

received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. … With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Today I will analyse the most recent data on ADTRAN’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Is ADTRAN, Inc. (NASDAQ:ADTN) Excessively Paying Its CEO?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Tom Stanton's Compensation Compare With Similar Sized Companies. … has a market cap of US$549m, and is paying total annual CEO compensation of US$4.4m.

Simply Wall St -

Company Info

Description

ADTRAN, Inc. provides networking and communications equipment worldwide. The company operates through two segments, Network Solutions and Services & Support. It offers access and aggregation solutions, including network management and subscriber services control and orchestration software within a SD-access architecture; SDN-controlled programmable network elements; fiber to the premises and fiber to the node (FTTN) multi-service access nodes (MSAN); fiber aggregation and FTTN MSAN; fiber to the distribution point optical network units; optical line terminals; optical networking edge aggregation; and IP digital subscriber line access multiplexers. The company offers cabinet and outside-plant enclosures and services; pluggable optical transceivers, cables, and other miscellaneous materials; and other products and services. In addition, it provides subscriber solutions and experience comprising SaaS management platforms; SmartOS software licensing for residential and enterprise gateway and Wi-Fi devices; broadband customer premise solutions, such as passive optical network and point-to-point Ethernet optical network terminals; radio frequency over glass micro nodes; residential and business gateways; Wi-Fi access points and related powering and switching infrastructure; enterprise session border controllers; carrier Ethernet services termination devices; voice over Internet protocol media gateways; and other products and services. Further, the company offers time division multiplexed and asynchronous transfer mode based aggregation systems and customer devices; HDSL, ADSL, and other technologies; and other products and services. Additionally, it provides planning, engineering, program management, maintenance, support, installation, commissioning, and implementation services. The company serves communications service providers, cable/ multiple system operators, and distributed enterprises. ADTRAN, Inc. was founded in 1985 and is headquartered in Huntsville, Alabama.

Details
Name: ADTRAN, Inc.
ADTN
Exchange: NasdaqGS
Founded: 1985
$460,567,490
47,826,323
Website: http://www.adtran.com
Address: ADTRAN, Inc.
901 Explorer Boulevard,
Huntsville,
Alabama, 35806,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ADTN Common Stock Nasdaq Global Select US USD 10. Aug 1994
DB ATN Common Stock Deutsche Boerse AG DE EUR 10. Aug 1994
Number of employees
Current staff
Staff numbers
1,900
ADTRAN employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/10 23:31
End of day share price update: 2019/11/08 00:00
Last estimates confirmation: 2019/11/05
Last earnings filing: 2019/11/05
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


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.