ADT Inc. (ADT) AI Stock Analysis

ADT Inc. is a provider of security, automation, and smart home solutions serving residential and business clients across the United States. It operates through three segments: Consumer and Small Business, Commercial, and Solar. The company's services include fire detection, fire suppression, video surveillance, and access control systems. Its monitored security solutions detect intrusion and monitor environmental hazards like smoke, fire, carbon monoxide, flooding, and temperature changes. ADT also offers automation tools allowing customers to remotely manage security, lights, thermostats, appliances, and cameras via smartphones or touchscreen panels, backed by continuous monitoring and maintenance services.

ADT's revenue stood at $5.31B in FY2021 before rising to $6.40B in FY2022. Revenue fell 27.2% to $4.65B in FY2023, then recovered to $4.90B in FY2024 and $5.13B in FY2025. Over the 5-year period from FY2020 to FY2025, revenue contracted at a CAGR of -0.7%. Net income improved from -$340.8M in FY2021 to $596.0M in FY2025, lifting net margin to 11.6%. For the trailing twelve months ended June 30, 2026, revenue totaled $5.16B with EPS of $0.73. In the latest quarter ended June 30, 2026, revenue grew 2.0% year-over-year and quarterly earnings rose 1.7%.

As of June 30, 2026, ADT held $4.0M in cash and short-term investments against $7.69B in total debt, resulting in net debt of $7.68B. Its current ratio was 0.69, and its debt-to-equity ratio stood at 2.21 based on shareholders' equity of $3.48B. During FY2025, ADT produced $1.89B in operating cash flow and $1.31B in free cash flow. Cash deployment included $572.0M for capital expenditures, $607.0M for share buybacks, and $187.0M in dividends paid.

ADT trades at a trailing P/E of 9.4x and a forward P/E of 6.3x, lower than the median of its US-listed Industrials peers of 24.8x and 17.2x, respectively. Its enterprise value to EBITDA ratio is 4.6x, compared to the peer median of 13.9x, and its price-to-sales ratio is 1.0x versus the peer median of 1.5x. Over the past year, ADT shares fell 16.9%, underperforming the 16.8% return of the S&P 500. Over five years, the stock dropped 8.0%, compared to an 83.0% gain for the benchmark.

ADT offers a forward annual dividend of $0.22 per share, which equals a dividend yield of 3.20%. Its payout ratio is 24.4%, and dividends are paid on a quarterly basis. The company has paid dividends for 9 consecutive years and achieved a 5-year annualized dividend growth rate of 9.5%. The most recent ex-dividend date was September 10, 2026.

Wall Street coverage consists of 2 Strong Buy, 0 Buy, 3 Hold, and 1 Sell ratings. The mean price target is $8.13, which is 18.3% above the last close of $6.87. For the fiscal year ending December 31, 2026, analysts expect EPS of $0.92 on revenue of $5.22B. ADT beat EPS estimates in 3 of the last 4 quarters, and its next earnings release is scheduled for November 3, 2026.

This page is an AI-written research summary of ADT Inc. (ADT). 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.

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