ADT Inc.ADT · NYSE

Why the market may be pricing it low

• Having divested its commercial and solar businesses, the company now presents as a narrowed, single-segment business rather than one still expanding.

  As a result of the Commercial Divestiture and ADT Solar Exit, unless otherwise noted, we report current and historical financial and operating information for our one remaining segment.MD&A

• The company relies on an exclusive Google device deal, yet Google may still sell similar devices to competitors, undercutting ADT's own positioning.

  Google can sell the same or similar devices to our competitors who may more successfully commercialize products or services that compete with ours, thereby materially harming our business.Risk factors

• Its aging core systems and architecture add unfamiliar challenges as the company simultaneously builds new platform capabilities on top of them.

  the age of our systems and architecture may present unique challenges that we have not previously encountered as we undertake these developmental effortsRisk factors

What could close the gap

• Three 13D filings in two years signal 5%-plus holders with stated intent to engage on management, a possible catalyst for change.

  直近2年に 3 件Shareholders

• An 8-K reporting an annual meeting vote (Item 5.07) in May 2026 marks a point where shareholder matters on capital policy or board composition surfaced.

  2026-05-28 Item 1.01,2.03,5.07,9.018-K filings

• An 8-K on officer changes and bylaw amendments (Items 5.02, 5.03) the same month points to a leadership transition that could prompt a reassessment.

  2026-05-08 Item 5.02,5.03,8.01,9.018-K filings

How a buyer could still lose (value trap)

• Cash of only $3.9M against roughly $7.69B of borrowings means a worsening rate environment could squeeze earnings through refinancing costs.

  Based on the figures below

• A flagged increase in share count raises the scenario where per-share value keeps getting diluted even as overall profit grows.

  Based on the figures below

Financial quality (Piotroski F-score)

• ✓Profitable (ROA > 0)
• ✓Positive operating cash flow
• ✓ROA up on last year
• ✓Cash flow exceeds net profit
• ✓Leverage down on last year
• ✓Current ratio up on last year
• –No new shares issuedno data
• –Gross margin up on last yearno data
• ✓Asset turnover up on last year

Scored out of the checks with data, scaled to 9. Compares the latest year with the year before.

Figures

Sales

$5.2bn

Operating profit

$1.3bn

Net profit

$613m

Operating cash flow

$2.2bn

Cash

$4m

Debt

$7.7bn

Equity

$3.5bn

Latest twelve months to 2026-06-30; F-score for the fiscal year to 2025-12-31