Fact based stock research
ADTRAN (NasdaqGS:ADTN)

US00486H1059

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

ADTRAN stock research in summary

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ANALYSIS: With an Obermatt Combined Rank of 63 (better than 63% compared with investment alternatives), ADTRAN (Communications Equipment, USA) shares have above-average financial characteristics compared with similar stocks. Shares of ADTRAN are low in value (priced high) with a consolidated Value Rank of 29 (worse than 71% of alternatives). But they show above-average growth (Growth Rank of 67) and are safely financed (Safety Rank of 73, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 63, is a buy recommendation based on ADTRAN's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company ADTRAN exhibits low value (Obermatt Value Rank of 29), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 67). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 73) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	29
Growth Rank	67
Safety Rank	73
Combined Rank	63

Country	USA
Industry	Communications Equipment
Index	NASDAQ
Size class	Medium

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: ADTRAN

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	55	75	100	29
GROWTH
GROWTH	68	53	23	67
SAFETY
SAFETY	47	100	73	73
SENTIMENT
SENTIMENT	n/a	79	16	^new
360° VIEW
360° VIEW	n/a	100	67	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better ADTRAN is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	55	75	100	29
GROWTH
GROWTH	68	53	23	67
SAFETY
SAFETY	47	100	73	73
COMBINED
COMBINED	58	98	87	63

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of ADTRAN the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 29 (worse than 71% compared with alternatives), ADTRAN shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for ADTRAN. Price-to-Sales (P/S) is 76, which means that the stock price compared with what market professionals expect for future sales is lower than for 76% of comparable companies, indicating a good value concerning ADTRAN's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 50% of alternatives (50% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 1 are lower than average (dividends are expected to be lower than 99% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 12, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 29, is a hold recommendation based on ADTRAN's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for ADTRAN may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	52	56	74	76
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	20	28	37	12
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	47	54	74	50
DIVIDEND YIELD
DIVIDEND YIELD	84	94	100	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	55	75	100	29

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of ADTRAN; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 67 (better than 67% compared with alternatives), ADTRAN shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for ADTRAN. Sales Growth has a rank of 56 which means that currently, professionals expect the company to grow more than 56% of its competitors. Both Profit Growth, with a rank of 83, and Stock Returns, with a rank of 63, are also above average. But Capital Growth only has a rank of 24, which means that, currently, professionals expect the company to grow its invested capital less than 76% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 67, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	44	67	4	56
PROFIT GROWTH
PROFIT GROWTH	19	31	10	83
CAPITAL GROWTH
CAPITAL GROWTH	n/a	27	99	24
STOCK RETURNS
STOCK RETURNS	94	65	23	63
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	68	53	23	67

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of ADTRAN.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 73 (better than 73% compared with alternatives), the company ADTRAN has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of ADTRAN is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for ADTRAN.Leverage is at 71, meaning the company has a below-average debt-to-equity ratio. It has less debt than 71% of its competitors.Refinancing is at a rank of 80, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 80% of its competitors. Liquidity is at 18, meaning that the company generates less profit to service its debt than 82% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 73 (better than 73% compared with alternatives), ADTRAN has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for ADTRAN more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	84	100	70	71
REFINANCING
REFINANCING	57	59	79	80
LIQUIDITY
LIQUIDITY	11	95	19	18
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	47	100	73	73

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of ADTRAN and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	80	26	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	9	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	63	27	^new
MARKET PULSE
MARKET PULSE	n/a	82	34	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	79	16	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for ADTRAN.
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