ADT provides commercial security systems and services. Through its subsidiaries, the company is engaged in the sale, installation, servicing, and monitoring of electronic home and business security and automation systems in the United States and Canada. The company also offers residential, commercial, and multi-site customers a comprehensive set of burglary, video, access control, fire and smoke alarm, and medical alert solutions. The company's 24/7 monitoring capabilities are enabled by 12 monitoring centers. As of Sept. 30, 2017, the company serves approximately 7.2 million customers (excluding contracts monitored but not owned) throughout the United States and Canada.
  • TickerADT
  • ISINUS00090Q1031
  • ExchangeNew York Stock Exchange
  • SectorSupport Services
  • CountryUnited States
Valens Research

Valens Equity Insights and Inflections - 2020 05 19

LVS currently trades above corporate averages relative to Uniform earnings, with a 47.4x Uniform P/E (Fwd V/E'). Even at these levels, the market is pricing in expectations for Uniform ROA to decline from 16% in 2019 to 12% in 2024, accompanied by 1% Uniform asset growth going forward. Meanwhile, analysts have similar expectations, projecting Uniform ROA to only rebound to 13% in 2021 after a poor 2020, accompanied by 2% Uniform asset shrinkage. That said, management is confident about Macao revenue growth, their Singapore investments, and cost controls. Current valuations appear to be pricing...

Valens Research

Weekly Equity Idea Highlight - 2020 05 18

ADT has a robust high return and stable business model that the market is misunderstanding. The market is expecting UAFRS-based (Uniform) ROA (ROA') to fade from 48% in 2019 to 19% in 2024, with Uniform asset growth slowing to a modest 3% a year going forward. The market does not think the company's returns and business model is sustainable, even though the company has consistently generated these high returns for decades. The market also appears to be expecting increased competition from do-it-yourself companies that could disrupt the business when the smart-home world has made the co...

Valens Research

ADT - Embedded Expectations Analysis - 2020 05 13

ADT Inc. (ADT:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with an 11.6x Uniform P/E, implying bearish expectations for the firm. Meanwhile, management may be concerned about customer acquisition costs, growth, and their product enhancements Specifically, management may lack confidence in their ability to lower the average cost to acquire a Defenders account and grow their commercial business, and they may be concerned about the impact of coronavirus on their technician business. In addition, they may lack confidence in their ability to grow th...

Valens Research

Valens Equity Insights and Inflections - 2020 05 19

LVS currently trades above corporate averages relative to Uniform earnings, with a 47.4x Uniform P/E (Fwd V/E'). Even at these levels, the market is pricing in expectations for Uniform ROA to decline from 16% in 2019 to 12% in 2024, accompanied by 1% Uniform asset growth going forward. Meanwhile, analysts have similar expectations, projecting Uniform ROA to only rebound to 13% in 2021 after a poor 2020, accompanied by 2% Uniform asset shrinkage. That said, management is confident about Macao revenue growth, their Singapore investments, and cost controls. Current valuations appear to be pricing...

Valens Research

Weekly Equity Idea Highlight - 2020 05 18

ADT has a robust high return and stable business model that the market is misunderstanding. The market is expecting UAFRS-based (Uniform) ROA (ROA') to fade from 48% in 2019 to 19% in 2024, with Uniform asset growth slowing to a modest 3% a year going forward. The market does not think the company's returns and business model is sustainable, even though the company has consistently generated these high returns for decades. The market also appears to be expecting increased competition from do-it-yourself companies that could disrupt the business when the smart-home world has made the co...

Valens Research

ADT - Embedded Expectations Analysis - 2020 05 13

ADT Inc. (ADT:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with an 11.6x Uniform P/E, implying bearish expectations for the firm. Meanwhile, management may be concerned about customer acquisition costs, growth, and their product enhancements Specifically, management may lack confidence in their ability to lower the average cost to acquire a Defenders account and grow their commercial business, and they may be concerned about the impact of coronavirus on their technician business. In addition, they may lack confidence in their ability to grow th...

Feasibility Study Results in December to be a Catalyst for this Junior

Feasibility Study Results in December to be a Catalyst for this Junior