ADT Inc (ADT) Stock Analysis
Verdict: BUY
Strong FCF and aggressive insider buying signal deep value, but high debt leverage remains the ceiling on multiple expansion.
Investment score: 68/100
Analysis as of
Is ADT Inc stock worth reviewing? AI model thesis
ADT is currently a deep-value play supported by a 3.3% dividend and exceptional free cash flow generation. While the debt load is high ($7.7B), the transition back to a pure-play residential security model is improving profitability, evidenced by consecutive earnings surprises. Multi-insider buying at current levels provides a strong signal of a price floor.
7-factor investment score
- Valuation: 85/100 (weight 20%)
- Financial Health: 55/100 (weight 15%)
- Technical Momentum: 30/100 (weight 15%)
- Earnings Quality: 80/100 (weight 15%)
- Insider Sentiment: 95/100 (weight 10%)
- Analyst Consensus: 70/100 (weight 10%)
- Risk-Adjusted Return: 65/100 (weight 15%)
ADT Inc opportunities and risks
What speaks for ADT
- Massive Free Cash Flow Yield
What speaks against ADT
- Debt Maturity and Liquidity Constraints
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ADT | 8.8x | 1.0x | 4.3x | 50.4% | 12.1% | 36.1% |
| SCI | 15.5x | 2.2x | 11.7x | 26.2% | 14.5% | 6.5% |
| LLYVA | n/a | 5.5x | 15.6x | 34.8% | -18.2% | -1.0% |
| HRB | 6.6x | 1.2x | 5.6x | 54.5% | 18.9% | 16.0% |
| FTDR | 17.2x | 2.1x | 9.8x | 51.2% | 12.3% | 8.7% |
| DRVN | 14.9x | 1.1x | 15.4x | 45.0% | 7.5% | 5.6% |
| Peer median | 14.9x | 2.1x | 11.7x | 45.0% | 12.3% | 6.5% |
Frequently asked questions about ADT Inc (ADT)
Is ADT stock a good investment?
The cached TradeMates AI model rates ADT Inc as BUY with an investment score of 68/100. ADT is currently a deep-value play supported by a 3.3% dividend and exceptional free cash flow generation. While the debt load is high ($7.7B), the transition back to a pure-play residential security model is improving profitability, evidenced by consecutive earnings surprises. Multi-insider buying at current levels provides a strong signal of a price floor. This is algorithmic model output, not personal investment advice.
Is ADT stock a buy?
The TradeMates model verdict for ADT is BUY with an investment score of 68/100. Treat this as a model signal to review, not a personal buy recommendation.