Value Investor
Start free

ADT

ADT on NYSE. ADT sells security and smart home systems to homes and small businesses. Market value $4.3bn.

Watch this stockFree. We tell you when something changes.

Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.

Should I look at this?

Not a fit for our list right now

Why it could be worth it

What to watch out for

See Technology stocks that passed both tests

This is not advice. Check the numbers below.

Compare with another stock

Cash yield
past 12 months to June 2026
42.4%very high

For every $100 of what the whole company costs, it produced $42.40 of spare cash in the past 12 months. A savings account pays about $4.

Price to profit
past 12 months to June 2026
9.6×cheap

You pay 9.6 years of operating profit for the business. The average large US company costs around 18.

Return on capital
five annual reports to December 2025
8.0%five-year median

Each dollar kept in the business earns 8 cents a year. Above 10 is good.

Quality score: 60 of 100. Price score: 100 of 100. Our list needs 70 on quality and 60 on price.

$6.36 a share, 5% above its 1-year low

Over the past year the price has ranged from $6.03 to $8.89.

Dividend: 3.9% a year

Paid every year for at least 5 years

Prices from Tuesday’s close (6 October).

Five years of cash, in billions

1.5
1.7
1.5
1.7
1.7
2.0
2021202220232024202512 monthsto Jun '26
Revenue
$4.2bn$4.4bn$4.7bn$4.9bn$5.1bn
Operating margin
0.2%16.5%25.3%24.7%25.5%
Debt to equity
3.012.912.082.052.05
Shares outstanding
n/an/an/an/an/a

Health checks

  • Free cash flow positive5 of 5 years
  • Accounting looks honest (Beneish)Not enough data
  • Financial strength (Piotroski)7 of 7 checks we could run
  • Profit backed by cash (accruals)Yes
  • Debt2.05× equity
  • Revenue growth, five yearsShrinking, 0.7% a year

The quarter to June 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $1.3 billion last quarter, about the same as a year ago.
  • Profit: $154 million, down 7% on a year ago.
  • It keeps 25 cents of each $1 of sales as operating profit, down from 26 cents a year earlier.
  • Spare cash over the past 12 months: $2 billion, up from $1.8 billion.
  • Debt is $7.7 billion more than cash, down from $7.8 billion a year ago.
  • Sales grew on a year ago in each of the last 4 quarters.
Sales by quarter
Sales by quarter
Quarter toAmount
September 2024$1.2bn
December 2024$1.3bn
March 2025$1.3bn
June 2025$1.3bn
September 2025$1.3bn
December 2025$1.3bn
March 2026$1.3bn
June 2026$1.3bn
Profit by quarter
Profit by quarter
Quarter toAmount
September 2024$127m
December 2024$190m
March 2025$140m
June 2025$165m
September 2025$145m
December 2025$145m
March 2026$168m
June 2026$154m

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
n/a
Last annual report (10-K)
2 March 2026
Next quarterly (estimated, 10-Q)
29 October 2026

Who owns it

5 long-term investors we follow own it, unchanged from 5 last quarter. 455 funds in all.

Jun '25
Dec '25
Jun '26
Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

6 investors own more than 5%.

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

In the last 12 months, 6 insiders bought $526,478 of shares on the open market.

  • Likosar Jeffrey
    Pres Corp Dev & Trans. & CFO
    Bought
    Date
    29 May 2026
    Shares
    15,000
    Price
    $6.75
    Value
    $101,250
  • Miller Kimberly
    EVP, CMO & Comm. Officer
    Bought
    Date
    14 May 2026
    Shares
    3,625
    Price
    $6.91
    Value
    $25,049
  • Ahmad Fawad
    EVP, Chief Oper and Cust. Off.
    Bought
    Date
    12 May 2026
    Shares
    7,500
    Price
    $6.75
    Value
    $50,625
  • Khan Omar
    EVP, Chief Business Officer
    Bought
    Date
    11 May 2026
    Shares
    7,280
    Price
    $6.88
    Value
    $50,086
  • Houston Daniel Joseph
    Director
    Bought
    Date
    8 May 2026
    Shares
    36,450
    Price
    $6.87
    Value
    $250,412
  • Scott David A.
    EVP, Chief People & Admin. Off
    Bought
    Date
    5 March 2026
    Shares
    7,300
    Price
    $6.72
    Value
    $49,056

From Form 4 filings: insiders must report trades in their own company's shares within two days.

Warning signs in its filings

Problems the company itself reported to the SEC, in its own words.

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 2 Mar 2026, plus the 10-Q filed 30 Jul 2026 and 6 later 8-Ks.

A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.

What could go wrong

  • It carries a lot of debt: 2.0× its equity.
  • Sales have shrunk: 0.7% a year.

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
Create a free account to run it

Your first deep dive is free.

What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.