ADTN : NASDAQ : Technology
$19.9 | %
Today's Range: 19.8 - 20.1
Avg. Daily Volume: 340700.0
06/23/17 - 4:00 PM ET

Financial Analysis

ADTRAN INC's gross profit margin for the first quarter of its fiscal year 2017 has decreased 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 has strong liquidity. Currently, the Quick Ratio is 1.84 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.07% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)170.28142.2
EBITDA ($mil)11.368.87
EBIT ($mil)7.035.52
Net Income ($mil)6.655.01

Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)125.02120.91
Total Assets ($mil)667.18621.49
Total Debt ($mil)26.827.9
Equity ($mil)482.21472.39

Profitability Q1 FY17 Q1 FY16
Gross Profit Margin45.8348.62
EBITDA Margin6.666.23
Operating Margin4.133.88
Sales Turnover1.00.96
Return on Assets5.523.27
Return on Equity7.644.3
Debt Q1 FY17 Q1 FY16
Current Ratio2.913.62
Interest Expense0.140.15
Interest Coverage49.8738.08

Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)48.3248.99
Div / share0.090.09
Book value / share9.989.64
Institutional Own % n/a n/a
Avg Daily Volume339366.0318780.0


BUY. The current P/E ratio indicates a premium compared to an average of 24.63 for the Communications Equipment industry and a value on par with the S&P 500 average of 25.75. For additional comparison, its price-to-book ratio of 1.98 indicates a discount versus the S&P 500 average of 3.09 and a discount versus the industry average of 3.44. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ADTN 25.71 Peers 24.63   ADTN 26.99 Peers 15.21

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

ADTN is trading at a valuation on par with 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
ADTN 22.63 Peers 21.69   ADTN NM Peers 1.07

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.


Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ADTN 1.98 Peers 3.44   ADTN 87.80 Peers 7.87

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.


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

ADTN is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ADTN 1.44 Peers 3.05   ADTN 10.91 Peers 10.68

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.


Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

ADTN is keeping pace with its peers on the basis of sales growth.



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