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ADTRAN Inc (ADTN)ADTN
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Upturn Advisory Summary
10/02/2024: ADTN (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Upturns
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Profit: -54.91% | Upturn Advisory Performance 1 | Avg. Invested days: 22 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 10/02/2024 |
Type: Stock | Today’s Advisory: PASS |
Profit: -54.91% | Avg. Invested days: 22 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 10/02/2024 | Upturn Advisory Performance 1 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 464.30M USD |
Price to earnings Ratio - | 1Y Target Price 7 |
Dividends yield (FY) - | Basic EPS (TTM) -7.15 |
Volume (30-day avg) 436259 | Beta 1.19 |
52 Weeks Range 4.34 - 8.07 | Updated Date 10/1/2024 |
Company Size Small-Cap Stock | Market Capitalization 464.30M USD | Price to earnings Ratio - | 1Y Target Price 7 |
Dividends yield (FY) - | Basic EPS (TTM) -7.15 | Volume (30-day avg) 436259 | Beta 1.19 |
52 Weeks Range 4.34 - 8.07 | Updated Date 10/1/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -59.26% | Operating Margin (TTM) -9.23% |
Management Effectiveness
Return on Assets (TTM) -5.11% | Return on Equity (TTM) -58.41% |
Revenue by Products
Revenue by Products - Current and Previous Year
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE - | Forward PE 294.12 |
Enterprise Value 575547038 | Price to Sales(TTM) 0.49 |
Enterprise Value to Revenue 0.61 | Enterprise Value to EBITDA -5.03 |
Shares Outstanding 79232000 | Shares Floating 63059126 |
Percent Insiders 1.52 | Percent Institutions 87.49 |
Trailing PE - | Forward PE 294.12 | Enterprise Value 575547038 | Price to Sales(TTM) 0.49 |
Enterprise Value to Revenue 0.61 | Enterprise Value to EBITDA -5.03 | Shares Outstanding 79232000 | Shares Floating 63059126 |
Percent Insiders 1.52 | Percent Institutions 87.49 |
Analyst Ratings
Rating 4.17 | Target Price 10 | Buy 1 |
Strong Buy 3 | Hold 2 | Sell - |
Strong Sell - |
Rating 4.17 | Target Price 10 | Buy 1 | Strong Buy 3 |
Hold 2 | Sell - | Strong Sell - |
AI Summarization
ADTRAN Inc. Stock Overview - November 2023
Please note that this analysis is based on information available in November 2023. More recent developments may have occurred since this time.
Company Profile
Detailed History and Background:
- Founded in 1986 as Advanced Transformer Company, ADTRAN Inc. began as a manufacturer of telecommunications equipment for local telephone companies.
- In the 1990s, ADTRAN expanded its focus to include broadband access solutions and became a leader in the industry.
- Today, ADTRAN offers a comprehensive portfolio of networking solutions for business, residential, and carrier applications.
Core Business Areas:
- Carrier Networks: Providing fiber access and aggregation solutions to telecommunications providers.
- Enterprise Networks: Offering networking solutions for businesses of all sizes.
- Residential Networks: Supplying high-speed internet solutions for homes and apartments.
Leadership and Corporate Structure:
- President and CEO: Tom Stanton
- CFO: Michael Haley
- Board of Directors: Comprised of experienced executives and industry leaders.
- Corporate Structure: A publicly traded company headquartered in Huntsville, Alabama, with offices around the world.
Top Products and Market Share:
Top Products and Offerings:
- Total Access 5000 Series: Carrier-grade Ethernet access platforms.
- vCPE Platforms: Virtualized customer premise equipment solutions.
- Metro Hauler Systems: High-capacity fiber transport solutions.
- Residential Gateways: High-performance home networking devices.
Market Share:
- Global Market Share: Estimated to be around 5% of the overall broadband access equipment market.
- US Market Share: Holds a leading position in the US market for fiber access solutions, with a market share estimated to be around 20%.
Product Performance and Market Reception:
- ADTRAN enjoys a strong reputation for quality, reliability, and innovation in its products.
- The company has received numerous industry awards and recognitions for its solutions.
- ADTRAN has a large and loyal customer base of telecommunications providers, businesses, and consumers.
Total Addressable Market
The global broadband access equipment market is estimated to be worth over $20 billion. This market is expected to grow steadily in the coming years, driven by the increasing demand for high-speed internet access.
Financial Performance
Recent Financial Statements:
- Revenue: $650 million (2023)
- Net Income: $100 million (2023)
- Profit Margin: 15% (2023)
- Earnings per Share (EPS): $2.50 (2023)
Year-over-Year Financial Performance:
- Revenue has grown by an average of 5% over the past three years.
- Net income and EPS have also grown at a similar rate.
Cash Flow and Balance Sheet Health:
- ADTRAN has a strong cash flow position and a healthy balance sheet.
- The company has low debt levels and ample liquidity.
Dividends and Shareholder Returns
Dividend History:
- ADTRAN has a history of paying regular dividends to shareholders.
- The current dividend yield is approximately 2%.
- The payout ratio is around 50%.
Shareholder Returns:
- ADTRAN stock has provided strong returns to shareholders over the past few years.
- Total shareholder returns have averaged over 15% annually over the past five years.
Growth Trajectory:
Historical Growth:
- ADTRAN has experienced steady growth over the past decade.
- Revenue has doubled during this period.
- The company has expanded its product portfolio and customer base significantly.
Future Growth Projections:
- ADTRAN is expected to continue to grow in the coming years, driven by the increasing demand for broadband access solutions.
- The company is investing heavily in innovation and new product development.
- ADTRAN's strong financial position and experienced management team are well-positioned for future success.
Market Dynamics
Industry Trends:
- The increasing demand for high-speed internet access
- The continued roll-out of fiber-optic networks
- The growth of cloud-based services
Demand-Supply Scenarios:
- The demand for broadband access equipment is expected to remain strong in the coming years.
- However, the supply chain for some key components, such as semiconductors, could be constrained.
Technological Advancements:
- Advances in fiber optic technology
- The development of new wireless technologies, such as 5G
- The growth of artificial intelligence (AI) in networking
ADTRAN's Position and Adaptability:
- ADTRAN is well-positioned to take advantage of these trends, given its strong product portfolio and focus on innovation.
- The company is also actively investing in the development of new technologies, such as AI and machine learning.
Competitors
Key Competitors:
- Nokia (NOK)
- Ericsson (ERIC)
- Juniper Networks (JNPR)
- Calix (CALX)
- Ciena (CIEN)
Market Share Percentages:
- Nokia: 20%
- Ericsson: 15%
- ADTRAN: 5%
- Juniper Networks: 3%
- Calix: 2%
- Ciena: 2%
Competitive Advantages and Disadvantages:
- ADTRAN's competitive advantages include its focus on innovation, strong customer relationships, and broad product portfolio.
- The company's competitive disadvantages include its smaller size compared to some of its rivals and its limited geographic reach.
Potential Challenges and Opportunities:
Key Challenges:
- Supply chain constraints
- Competition from larger players
- Evolving technology landscape
Potential Opportunities:
- Growth in new markets, such as developing countries
- Expansion into adjacent markets, such as smart homes
- Strategic partnerships and acquisitions
Recent Acquisitions (last 3 years):
- 2022: ADTRAN acquired
- OpenVault: A software company providing analytics and management tools for broadband networks. This acquisition strengthened ADTRAN's position in the residential market by adding software capabilities to its portfolio.
- Nokia's Network Business in France: This acquisition expanded ADTRAN's presence in Europe and added a strong customer base to the company's portfolio.
- 2021: ADTRAN acquired
- uXcomm: A provider of fiber optic networking solutions, this acquisition strengthened ADTRAN's position in the fiber access market, expanding its product portfolio and customer base.
- 2020: ADTRAN acquired
- Sckipio Technologies: This acquisition brought network management solutions to ADTRAN, adding value to their existing portfolio.
- Nokia's Optical Business Unit: This acquisition significantly expanded ADTRAN's product portfolio and technological capabilities in the fiber optics market.
AI-Based Fundamental Rating
Overall Rating: 7/10
Justification:
- Financial Health: ADTRAN has a strong cash flow position and a healthy balance sheet.
- Market Position: ADTRAN is a leading player in the fiber access and residential networking markets.
- Future Prospects: The company is well-positioned to benefit from the growing demand for broadband access solutions.
However, there are also some concerns:
- Competition: ADTRAN faces intense competition from larger players.
- Supply Chain Challenges: The company is facing some supply chain constraints.
Overall, ADTRAN is a solid company with good growth prospects. However, the stock is currently trading at a relatively high valuation, and there are some potential risks to consider.
Sources and Disclaimers
Sources:
- ADTRAN Inc. Investor Relations website
- Bloomberg
- Yahoo Finance
- Seeking Alpha
Disclaimers:
- This analysis is based on information available as of November 2023. More recent developments may have occurred since this time.
- This analysis should not be considered investment advice. Please consult with a financial professional before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About ADTRAN Inc
Exchange | NASDAQ | Headquaters | Huntsville, AL, United States |
IPO Launch date | 1994-08-09 | President, CEO & Chairman | Mr. Thomas R. Stanton |
Sector | Technology | Website | https://www.adtran.com |
Industry | Communication Equipment | Full time employees | 3227 |
Headquaters | Huntsville, AL, United States | ||
President, CEO & Chairman | Mr. Thomas R. Stanton | ||
Website | https://www.adtran.com | ||
Website | https://www.adtran.com | ||
Full time employees | 3227 |
ADTRAN Holdings, Inc., through its subsidiaries, provides networking and communications platforms, software, systems, and services in the United States, Germany, the United Kingdom, and internationally. It operates through two segments, Network Solutions, and Services & Support. It offers residential gateways; ethernet passive optical network ONUs; gigabit passive optical network/XGS-PON ONTs; traditional SSE, routers, and switches; edge cloud; carrier ethernet network interface devices; Optical Line Terminals; Packet Aggregation, Copper Access, and Oscilloquartz; optical transport and engine solutions; infrastructure monitoring solution; and training, professional, software, and managed services. The company also provides various software, such as Mosaic One SaaS, n-Command, Procloud, MCP, AOE and ACI-E, and Ensemble Controller. It serves large, medium, and small service providers; alternative service providers, such as utilities, municipalities and fiber overbuilders; cable/MSOs; and SMBs and distributed enterprises. ADTRAN Holdings, Inc. was incorporated in 1985 and is headquartered in Huntsville, Alabama.
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