Fetching financial data...
360investing
★ Watchlist

ADT Inc.

Data period: Annual Quarterly
NYSE · Industrials
ADT Inc.
ADT · Security & Protection Services
$6.83
▼ -0.08 (-1.16%)
Cached · 10 min
Overall Grade
C
Defensive
C
Enterprising
Profitability A
Gross Profit Margin 80.8%
Operating Margin 25.5%
Net Income Margin 11.6%
Fin. Health F
Years to Pay Off Debt 12.9 yrs
Working Capital vs Long-Term Debt -$7.4B
Working Capital -$67M
Valuation C
Margin of Safety 24.0%
Price-to-Book 1.28x
Cash Flow C
Free Cash Flow $1.3B
CapEx % of Net Income 95.9%
Owner Earnings $2.5B
Defensive — Graham's strict criteria (P/B, P/E, dividends, stability)  ·  Enterprising — Profitability & cash flow focused, accepts higher valuations for quality
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Market Cap $5.2B
Enterprise Value $13.0B
P/E (TTM) 8.99
Dividend Yield 3.18%
Exchange NYSE
Key Margins
Gross Profit 80.8%
Operating Margin 25.5%
Net Margin 11.6%
Company Info
Sector Industrials
Industry Security & Protection Services
Employees 12200
Country United States
Visit website
📖
Full Graham Analysis

Mr. Market is currently offering ADT Inc. at $6.83.

The business passes 6 of 7 of Graham's defensive criteria — a strong showing that few companies achieve.

At $6.83, the stock trades below its Graham Number of $8.98 — suggesting a margin of safety exists.

The margin of safety of 24.0% offers some protection but falls short of Graham's preferred 33% buffer.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock qualifies for Graham's Defensive investor — one seeking safety, stability, and freedom from effort.

About ADT Inc.

ADT Inc. provides security, interactive, and smart home solutions in the United States. The company offers burglar and life safety alarms, smart security cameras, smart home automation systems, and video surveillance systems to detect intrusion; control access; sense movement, smoke, fire, carbon monoxide, leaks, temperature, and other environmental conditions and hazards; and address personal medical emergencies, such as injuries or unanticipated falls. It also provides routine maintenance and installation services for upgraded or additional equipment; and personal emergency response system products and services to sustain independent living, detect when a fall occurs, and provide protection while on the go with geolocation capability. In addition, the company offers ADT+ app, an interactive technology platform; Trusted Neighbor, which allows customers to grant access to their homes through homeowner-authorized credentials and the ADT+ app; automation and smart home solutions, which allow for the remote monitoring and managing of spaces through smartphone applications, customized web portals, and touchscreen panels; and professionally installed and DIY security and smart home solutions. Further, it operates monitoring centers that provide professional and outsourced monitoring services; and field and call centers. The company sells its products under the ADT, ADT Pulse, and ADT+ brands. It serves the residential and small business security and automation markets comprising owners and renters of single-family homes, apartments, and small businesses owners through customer referrals, door-to-door activities, lead generation partners, retail and e-commerce channels, network of field sales and service offices, third-party independent dealers, and authorized dealers. 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.

Showing Key Metrics
Income Highlights
Metric 2025 2024 2023 2022 2021
Gross Profit % 80.8%▼ 82.7%▼ 83.8%▼ 84.1%• N/A
Operating Margin % 25.5%▲ 24.7%▼ 25.3%▲ 16.8%• N/A
Net Income % 11.6%▲ 10.2%▲ 10.0%▲ 3.0%• N/A
Diluted EPS 0.67▲ 0.52▲ 0.48▲ 0.19• N/A
Balance Sheet Highlights
Metric 2025 2024 2023 2022 2021
Total Assets $15.8B $16.1B $16.0B $17.8B N/A
Total Debt $7.7B▼ $7.7B▼ $7.8B▼ $9.8B• N/A
Working Capital -$67M▲ -$259M▲ -$476M▲ -$939M• N/A
Years to Pay Debt 12.90 15.38 16.90 74.06 N/A
Cash Flow Highlights
Metric 2025 2024 2023 2022 2021
Free Cash Flow $1.3B▲ $1.2B▲ $851M▼ $977M• N/A
Owner Earnings $2.5B $2.5B $2.7B $2.7B N/A
CapEx % of Net Income 95.9% 137.1% 174.3% 686.9% N/A
6/7
Graham Score
Defensive Investor
Meets Graham's strict criteria for conservative, low-risk investors.
Graham's Fair Value
$8.98
Margin of Safety
24.0%
Market Cap / Net Assets
1.3x
Net Assets: $3.8B
Warren's Owner Earnings
$2.5B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
6/7 — Defensive Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$5.1B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
0.93x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
✅
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
3.18%
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $0.19 to $0.67 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+252.6% EPS growth
vs > 33% EPS growth
✅
Moderate P/E Ratio
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
9.0x
vs P/E ≤ 15.0x
✅
Moderate Price-to-Book
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
1.28x P/B (P/E×P/B: 11.5)
vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $5.1B vs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 0.93x vs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data) vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
✅ Dividend Record — 3.18% vs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
✅ Earnings Growth — +252.6% EPS growth vs > 33% EPS growth
EPS grew from $0.19 to $0.67 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
✅ Moderate P/E Ratio — 9.0x vs P/E ≤ 15.0x
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
"The price-earnings ratio should be no more than 15 times average earnings."
✅ Moderate Price-to-Book — 1.28x P/B (P/E×P/B: 11.5) vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
"The price should not be more than 1½ times book value. P/E × P/B ≤ 22.5."
These metrics estimate what ADT Inc. is worth based on fundamentals — independent of what the market prices it at. Graham's Fair Value and NCAV are conservative floors. EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
$-15.72
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
$20.61
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
7.0%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric 2025 2024 2023 2022 2021
Capital Expenditure % of Net Income 95.9% 137.1% 174.3% 686.9% N/A
Repurchase of Capital Stock -$607M -$241M $0M -$1.2B N/A
Free Cash Flow $1.3B ▲ $1.2B ▲ $851M ▼ $977M • N/A •
Warren's Owner Earnings $2.5B $2.5B $2.7B $2.7B N/A
Peers & Industry
No auto-detected peers for Security & Protection Services. You can manually compare ADT against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
1.71%
Low — management has little skin in the game
Return on Equity (ROE)
15.8%
Excellent — management generates strong returns on equity
Return on Assets (ROA)
3.8%
Fair — average asset utilization
Share Buybacks (Latest Year)
$607M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-0.2% YoY
Debt is declining — management is deleveraging
Leadership Team
James David DeVries
CEO, President & Chairman
Age 61
Pay: $3,812,789
0.640% of net income
Jeffrey Likosar
CFO and President of Corporate Development & Transformation
Age 54
Pay: $2,031,612
0.341% of net income
Fawad Khalil Ahmad
Executive VP and Chief Operating & Customer Officer
Age 48
Pay: $1,664,505
0.279% of net income
Robert Dale
Senior Vice President of National Account Sales
Age 67
Top Institutional Holders
Institution % Owned Shares
State Farm Mutual Automobile Insurance Co 18.14% 133,333,333
Apollo Management Holdings, L.P. 13.88% 102,000,366
Blackrock Inc. 8.54% 62,757,465
Vanguard Portfolio Management LLC 6.23% 45,767,952
AQR Capital Management, LLC 6.11% 44,938,803
Dimensional Fund Advisors LP 5.43% 39,887,288
LSV Asset Management 4.05% 29,784,400
Vanguard Capital Management LLC 3.04% 22,316,573
⚠️ Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
1.07
Moderate volatility — moves slightly more than market
Short Interest
6.2% of float
Moderate short interest
Debt-to-Equity
2.04x
High leverage — significant financial risk
Current Ratio
0.84x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $6.25 Current: $6.83 High: $8.94
Currently at 22% of 52-week range

ADT Inc. (ADT) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's Fair Value: $8.98. Margin of safety: 24.0%. Gross profit margin: 80.8%. Operating margin: 25.5%. Net margin: 11.6%. Market cap: $5.2B. Sector: Industrials. Industry: Security & Protection Services. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett principles.

Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.

Data Sources & Methodology Privacy Policy