ADTN : NASDAQ : Technology
$18.20 up 0.05 | 0.28%
Today's Range: 17.92 - 18.23
Avg. Daily Volume: 451,900
07/29/16 - 4:00 PM ET

Financial Analysis


ADTRAN INC's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ADTRAN INC is extremely liquid. Currently, the Quick Ratio is 2.19 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.37% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)162.7160.14
EBITDA ($mil)18.156.3
EBIT ($mil)14.812.77
Net Income ($mil)10.232.54


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)121.78141.34
Total Assets ($mil)636.56708.99
Total Debt ($mil)27.928.8
Equity ($mil)473.72495.4


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin50.5844.88
EBITDA Margin11.153.93
Operating Margin9.11.73
Sales Turnover0.950.86
Return on Assets4.43.73
Return on Equity5.915.34
Debt Q2 FY16 Q2 FY15
Current Ratio3.342.67
Debt/Capital0.060.05
Interest Expense0.140.15
Interest Coverage104.3118.58


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)48.9950.57
Div / share0.090.09
EPS0.210.05
Book value / share9.679.8
Institutional Own % n/a n/a
Avg Daily Volume455998.0572278.0

Valuation


HOLD. ADTRAN INC's P/E ratio indicates a premium compared to an average of 27.55 for the Communications Equipment industry and a premium compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 1.87 indicates a discount versus the S&P 500 average of 2.81 and a discount versus the industry average of 3.09. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ADTN 31.72 Peers 27.55   ADTN 48.14 Peers 12.38

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

ADTN is trading at a premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ADTN is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ADTN 22.89 Peers 18.33   ADTN 0.41 Peers 0.62

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

ADTN is trading at a significant premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

ADTN trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ADTN 1.87 Peers 3.09   ADTN 16.32 Peers 51.41

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ADTN is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, ADTN is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ADTN 1.47 Peers 3.14   ADTN -1.29 Peers 10.39

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ADTN is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ADTN significantly trails its peers on the basis of sales growth

 

 

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