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ADT (ADT) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Industrials•Security & Protection Services
A
ExcellentMetricSide Score: 86/100
ProfitabilityProfit30/30
GrowthGrowth20/25
Balance SheetBalance16/25
Cash QualityCash20/20
Price & Volume
Market Cap $5.19B

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.

Moat Signals

Competitive analysis based on 33 quarters of fundamental data

Pricing Power

Moderate Moat

Operating margins are positive at ~26.2% on average, but show some variability — pricing power may be sensitive to market conditions.

Competitive Advantage

Moderate Moat

ROE averages 16.8% but has fluctuated — the competitive advantage may be cyclical or emerging.

Cash Generation

Strong Moat

Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.

Demand Durability

Strong Moat

TTM revenue has grown consistently (7 of 7 quarters up), with ~22.6% growth over the period. Strong demand durability.

Risk Signals

Data-driven red flags and warnings across 33 quarters

Low Risk

Margin Pressure

Healthy

Margins are stable or improving at ~25.6% — no sign of cost or pricing stress.

Earnings Quality

Healthy

FCF covers net income by 3.3x on average — earnings are well-supported by cash generation.

Leverage Risk

Healthy

D/E ratio is 1.9 — conservative capital structure with low financial risk.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Healthy

Free cash flow is consistently positive — the business self-funds without external capital reliance.

Share Dilution

Healthy

Shares decreased 10.4% — net buybacks are reducing shares outstanding and boosting per-share value.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$5.14B
3.7%
Q. Revenue
$1.28B
TTM EBITDA
$2.69B
0.3%
TTM Op. Income
$1.32B
1.3%
Q. Op. Income
$325.42M
TTM Net Income
$624.08M
13.5%
Q. Net Income
$168.37M
EPS
$0.21
Shares Out.
$759.72M
6.0%
$5.14B in TTM revenue grew 3.7% YoY, reaching $1.28B last quarter. TTM EBITDA of $2.69B and TTM operating income of $1.32B shows growth is flowing through. Net income of $624.08M TTM confirms the company is converting revenue into profit. Revenue is growing modestly — monitor for acceleration or deceleration.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin
52.5%
Op. Margin
25.5%
1.1%
Net Margin
13.2%
19.0%
Op. margin of 25.5% is up 0.3% YoY — cost efficiency is improving. Net margin at 13.2%.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
8.3x
P/S Ratio
1.0x
P/B Ratio
1.4x
At 8.3x P/E, the stock trades below market averages — potentially undervalued. P/S of 1.0x and P/B of 1.4x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$15.91B
Cash
$119.33M
Long-Term Debt
$7.36B
Book Value
$3.80B
D/E Ratio
1.9
Debt/EBITDA
11.0
With $15.91B in assets and $7.36B in long-term debt, the D/E of 1.9and book value of $3.80B — reflects moderate leverage — debt is manageable but worth monitoring.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$638.09M
Free Cash Flow
$589.16M
39.9%
FCF Margin
11.5%
FCF / Net Income
3.5
FCF of $589.16M on $638.09M in operating cash flow. The FCF / Net Income ratio of 0.9x means earnings are well backed by actual cash — high-quality earnings.

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