Adt Inc Stock Buy Hold or Sell Recommendation
| ADT Stock | USD 7.27 0.05 0.69% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding ADT Inc is 'Strong Hold'. A buy or sell recommendation is an automated directive regarding whether to purchase or sell ADT Inc given historical horizon and risk tolerance. When we issue a 'buy' or 'sell' recommendation for ADT Inc, the advice is generated through an automated system that utilizes algorithms and statistical models.
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 unemployment.
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
 |  |
Strong Hold
Market Performance | Insignificant | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
ADT Trading Alerts and Improvement Suggestions
| ADT Inc has 7.94 B in debt with debt to equity (D/E) ratio of 3.1, meaning that the company heavily relies on borrowing funds for operations. ADT Inc has a current ratio of 0.5, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for ADT to invest in growth at high rates of return. | |
| ADT Inc has a frail financial position based on the latest SEC disclosures | |
| Over 97.0% of ADT shares are held by institutions such as insurance companies | |
| Latest headline from finance.yahoo.com: ADT shareholders have earned a 21 percent return over the last year |
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 | 0.13 | Value At Risk | -2.32 | Potential Upside | 2.06 | Standard Deviation | 2.65 |
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 Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change To Inventory | (60.8M) | (84.0M) | (67.4M) | 24.7M | 22.3M | 23.4M | |
| Change In Cash | 159M | (175M) | 341M | (243.6M) | (219.3M) | (208.3M) | |
| Free Cash Flow | 792M | 787M | 976M | 850.8M | 978.5M | 724.4M | |
| Depreciation | 1.9B | 1.9B | 1.7B | 1.4B | 1.6B | 1.6B | |
| Other Non Cash Items | 416M | 40M | 73M | 72.9M | 83.9M | 79.7M | |
| Capital Expenditures | 575M | 863M | 912M | 806.9M | 927.9M | 653.9M | |
| Net Income | (632M) | (341M) | 173M | 463.0M | 532.5M | 559.1M | |
| End Period Cash Flow | 208M | 33M | 374M | 129.9M | 149.4M | 169.8M | |
| Dividends Paid | 109M | 116M | 127M | 128.6M | 115.7M | 214.2M | |
| Investments | (1.1B) | (1.7B) | (1.5B) | (1.3B) | (1.2B) | (1.2B) |
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 Diversified Consumer Services 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 | 0.12 | |
β | Beta against Dow Jones | 0.14 | |
σ | Overall volatility | 2.73 | |
Ir | Information ratio | 0.04 |
ADT Volatility Alert
ADT Inc has relatively low volatility with skewness of 4.26 and kurtosis of 29.83. 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 | 0.004 | -0.31 |
| Return On Asset | 0.0409 | -0.14 |
| Profit Margin | 0.17 % | (1.27) % |
| Operating Margin | 0.26 % | (5.51) % |
| Current Valuation | 14.1 B | 16.62 B |
| Shares Outstanding | 836.27 M | 571.82 M |
| Shares Owned By Insiders | 1.20 % | 10.09 % |
| Shares Owned By Institutions | 97.48 % | 39.21 % |
| Number Of Shares Shorted | 21.65 M | 4.71 M |
| Price To Earning | 25.33 X | 28.72 X |
| Price To Book | 1.66 X | 9.51 X |
| Price To Sales | 1.26 X | 11.42 X |
| Revenue | 4.98 B | 9.43 B |
| Gross Profit | 4.09 B | 27.38 B |
| EBITDA | 2.04 B | 3.9 B |
| Net Income | 463.01 M | 570.98 M |
| Cash And Equivalents | 257 M | 2.7 B |
| Cash Per Share | 0.12 X | 5.01 X |
| Total Debt | 7.94 B | 5.32 B |
| Debt To Equity | 3.10 % | 48.70 % |
| Current Ratio | 0.51 X | 2.16 X |
| Book Value Per Share | 4.32 X | 1.93 K |
| Cash Flow From Operations | 1.66 B | 971.22 M |
| Short Ratio | 3.92 X | 4.00 X |
| Earnings Per Share | 0.01 X | 3.12 X |
| Target Price | 8.64 | |
| Number Of Employees | 14.3 K | 18.84 K |
| Beta | 1.52 | -0.15 |
| Market Capitalization | 6.48 B | 19.03 B |
| Total Asset | 15.96 B | 29.47 B |
| Retained Earnings | (3.62 B) | 9.33 B |
| Working Capital | (475.51 M) | 1.48 B |
| Current Asset | 399 M | 9.34 B |
Note: Acquisition by Jeffrey Likosar of 1231 shares of ADT subject to Rule 16b-3 [view details]
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.
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Additional Tools for ADT Stock Analysis
When running ADT's price analysis, check to measure ADT's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy ADT is operating at the current time. Most of ADT's value examination focuses on studying past and present price action to predict the probability of ADT's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ADT's price. Additionally, you may evaluate how the addition of ADT to your portfolios can decrease your overall portfolio volatility.