At the moment, the debt-to-equity of ADT Inc. (NYSE:ADT) is high, standing at 316.09, a figure that is higher than the 30.98 average recorded by the industry. This means that the company is currently holding a debt level at 9.57 B. ADT shares have a strong debt-to-equity ratio but their quick ratio which reads 0.50 is strong and might cause problems for them later in the future.
Even though there was a rise of +6.03% in revenue, the company failed to succeed in outperforming the industry average of 5.17%. For the most recent quarter, the net income has dropped by -279.73%. This weakness in their income has affected them and thus increased their earnings to $589.91 M. The sustained growth in their revenue has helped boost their earnings per share.
They have recorded a -250.65% declining earnings per share earnings.
Comparing them to other companies in the industry and the overall Services sector, the industry average is 8.18 while 14.15 is of the sector.
ADT total operating cash flow had dropped to $443.2 billion compared to $458.19 billion in the same quarter last year.
Comparing it to other companies in the sector, ADT Inc. ROE is above 14.15 that of both the sector average.
Added to that, this ratio has missed the industry net margin that stands at 5.34.
Analysts meanwhile rate ADT Inc. (NYSE:ADT) as a strong buy. Still some above discussed indicators of the $5.25B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the ADT shares to either perform positively or negatively when compared to other stocks. The primary strengths of ADT Inc. can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.