ADI Global Distribution Inc. (ADIG) AI Stock Analysis
ADIG AI stock analysis summary
AI ResearchADI Global Distribution Inc. (ADIG) is a distributor of security, AV, and smart living equipment with a market capitalization of $1.18B. The company expanded annual revenue to $4.78B in FY2025, but generated a net loss of -$261.0M and negative free cash flow of -$576.0M. With a forward P/E of 9.8x, the shares trade at a discount to technology peers while carrying $714.0M in net debt.
- Market cap
- $1.18B
- Revenue (TTM)
- $4.88B
- P/E
- — fwd 9.8x
- 1Y return
- — S&P 500 16.8%
- Avg. target
- $26.40 70.5% vs last close
Bull case
- ADIG's forward P/E ratio of 9.8x trades at a substantial discount compared to the median of 18.8x for US-listed Technology peers.
- Consensus estimates project a return to profitability with EPS reaching $1.58 for the fiscal year ending December 31, 2026.
- Wall Street analysts maintain an average price target of $26.40, implying 70.5% upside over the last closing price of $15.48.
Bear case
- Annual net income turned negative, falling from $62.0M in FY2023 to a net loss of -$261.0M in FY2025.
- Free cash flow dropped sharply to -$576.0M in FY2025 as operating cash flow declined to -$522.0M.
- Year-over-year quarterly revenue growth slowed to 0.7% in the period ending June 30, 2026, trailing the peer median of 11.6%.
What ADI Global Distribution does
ADI Global Distribution Inc. operates as a distributor of security, AV, and smart living products across the United States and international markets. Founded in 1929 and based in Melville, New York, the company distributes video surveillance, power, automation, access control, AV, fire, intrusion, smart living, communications, and datacom and networking products.
Growth and profitability
Annual revenue grew at a 2-year CAGR of 15.8% from $3.57B in FY2023 to $4.78B in FY2025, reflecting 14.0% expansion in FY2025 after 17.6% growth in FY2024. Profitability has declined, with operating margin compressing from 5.6% in FY2023 to 3.7% in FY2025, and net income swinging from $62.0M in FY2023 to -$261.0M in FY2025. In the trailing twelve months ended June 30, 2026, revenue stood at $4.88B, but quarterly revenue growth slowed to 0.7% year-over-year, and diluted earnings per share were -$3.45.
Balance sheet and cash flow
As of June 30, 2026, the company held $531.0M in cash and short-term investments against $1.25B in total debt, resulting in net debt of $714.0M. Total assets stood at $4.64B and shareholders' equity was $2.46B, supporting a debt-to-equity ratio of 0.51 and a current ratio of 2.80. In FY2025, cash generation deteriorated to -$522.0M in operating cash flow and -$576.0M in free cash flow, while capital expenditures totaled $54.0M.
Valuation and performance
At $15.48 per share on October 16, 2026, ADIG traded near its 52-week low of $15.00 and well below its 52-week high of $30.99. The stock trades at a forward P/E of 9.8x, a price-to-sales of 0.2x, and an EV/EBITDA of 9.7x, each lower than the median of its US-listed Technology peers at 18.8x forward earnings, 2.8x sales, and 16.6x EV/EBITDA. The stock's price-to-book multiple stands at 0.6x against an enterprise value of $2.66B.
What analysts expect
Wall Street coverage includes 2 Strong Buy ratings, 0 Buy ratings, and 3 Hold ratings across 5 analysts. The mean price target of $26.40 represents a 70.5% premium to the last closing price of $15.48. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $4.97B and EPS of $1.58, followed by projected FY2027 revenue of $5.19B and EPS of $1.85, representing expected EPS growth of 17.1%.
Key risks and what to watch
- Net debt totaled $714.0M as of June 30, 2026, requiring ongoing cash generation to service $1.25B in total debt.
- Trailing twelve-month operating margin stands at 2.3%, well below the US-listed Technology peer median of 13.2%.
- A failure to meet the projected FY2026 EPS estimate of $1.58 could weigh on equity following -$3.45 in trailing twelve-month EPS.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ADIG AI stock analysis
This page is an AI-written research summary of ADI Global Distribution Inc. (ADIG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ADIG income statement, ADIG balance sheet, ADIG key metrics, ADIG analyst forecast, ADIG chart. See the ADIG stock overview for the latest quote and news.
ADIG AI stock analysis FAQ
What is ADIG's main business?
ADI Global Distribution Inc. distributes security, AV, fire, smart living, access control, and networking products to commercial and residential customers globally.
How does ADIG's valuation compare to its peers?
ADIG trades at a forward P/E of 9.8x and EV/EBITDA of 9.7x, both well below the median of its US-listed Technology peers at 18.8x and 16.6x, respectively.
What is the consensus analyst target for ADIG?
Analysts track a mean price target of $26.40, which is 70.5% above its closing price of $15.48 on October 16, 2026.
Does ADI Global Distribution pay a dividend?
ADIG does not currently report a dividend payment.