ADT (Germany) Buy Hold or Sell Recommendation
| 541 Stock | EUR 6.50 0.05 0.76% |
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding ADT Inc is 'Hold'. Macroaxis provides ADT buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding ADT positions.
Check out ADT Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as ADT and provide practical buy, sell, or hold advice based on investors' constraints. ADT Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
ADT |
Execute ADT Buy or Sell Advice
The ADT recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on ADT Inc. Macroaxis does not own or have any residual interests in ADT Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute ADT's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Weak | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Quite High | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
ADT Trading Alerts and Improvement Suggestions
| ADT Inc has high likelihood to experience some financial distress in the next 2 years | |
| ADT Inc has accumulated 8.96 B in total debt with debt to equity ratio (D/E) of 3.3, implying the company greatly relies on financing operations through barrowing. ADT Inc has a current ratio of 0.65, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist ADT until it has trouble settling it off, either with new capital or with free cash flow. So, ADT's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like ADT Inc sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for ADT to invest in growth at high rates of return. When we think about ADT's use of debt, we should always consider it together with cash and equity. | |
| Over 92.0% of ADT shares are owned by institutions such as pension funds |
ADT Returns Distribution Density
The distribution of ADT's historical returns is an attempt to chart the uncertainty of ADT's future price movements. The chart of the probability distribution of ADT daily returns describes the distribution of returns around its average expected value. We use ADT Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of ADT returns is essential to provide solid investment advice for ADT.
| Mean Return | 0.04 | Value At Risk | -2.24 | Potential Upside | 2.38 | Standard Deviation | 2.60 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of ADT historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
ADT Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to ADT or Industrials sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that ADT's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a ADT stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.01 | |
β | Beta against Dow Jones | 0.59 | |
σ | Overall volatility | 2.66 | |
Ir | Information ratio | -0.0039 |
ADT Volatility Alert
ADT Inc has relatively low volatility with skewness of 3.73 and kurtosis of 24.37. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure ADT's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact ADT's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.ADT Fundamentals Vs Peers
Comparing ADT's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze ADT's direct or indirect competition across all of the common fundamentals between ADT and the related equities. This way, we can detect undervalued stocks with similar characteristics as ADT or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of ADT's fundamental indicators could also be used in its relative valuation, which is a method of valuing ADT by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare ADT to competition |
| Fundamentals | ADT | Peer Average |
| Return On Equity | -0.0124 | -0.31 |
| Return On Asset | 0.0199 | -0.14 |
| Current Valuation | 17.83 B | 16.62 B |
| Shares Outstanding | 858.72 M | 571.82 M |
| Shares Owned By Insiders | 1.10 % | 10.09 % |
| Shares Owned By Institutions | 92.33 % | 39.21 % |
| Price To Book | 2.75 X | 9.51 X |
| Price To Sales | 1.31 X | 11.42 X |
| Revenue | 6.39 B | 9.43 B |
| Gross Profit | 4.36 B | 27.38 B |
| EBITDA | 2.2 B | 3.9 B |
| Net Income | 173 M | 570.98 M |
| Cash And Equivalents | 122.55 M | 2.7 B |
| Cash Per Share | 0.15 X | 5.01 X |
| Total Debt | 8.96 B | 5.32 B |
| Debt To Equity | 3.30 % | 48.70 % |
| Current Ratio | 0.66 X | 2.16 X |
| Book Value Per Share | 3.55 X | 1.93 K |
| Cash Flow From Operations | 1.89 B | 971.22 M |
| Earnings Per Share | (0.04) X | 3.12 X |
| Target Price | 11.16 | |
| Number Of Employees | 30 | 18.84 K |
| Beta | 1.75 | -0.15 |
| Market Capitalization | 6.87 B | 19.03 B |
| Total Asset | 17.87 B | 29.47 B |
| Annual Yield | 0.02 % | |
| Net Asset | 17.87 B |
ADT Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as ADT . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About ADT Buy or Sell Advice
When is the right time to buy or sell ADT Inc? Buying financial instruments such as ADT Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having ADT in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in ADT Stock
When determining whether ADT Inc is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if ADT Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Adt Inc Stock. Highlighted below are key reports to facilitate an investment decision about Adt Inc Stock:Check out ADT Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.