ADTN : NASDAQ : Technology
$23.35 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 346300.0
07/27/17 - 4:00 PM ET

Financial Analysis


ADTRAN INC's gross profit margin for the second 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 1.91 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.03% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)184.67162.7
EBITDA ($mil)17.2818.15
EBIT ($mil)16.4514.81
Net Income ($mil)12.410.23


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)136.13121.78
Total Assets ($mil)668.98636.56
Total Debt ($mil)26.827.9
Equity ($mil)483.36473.72


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin46.2850.58
EBITDA Margin9.3511.15
Operating Margin8.919.1
Sales Turnover1.030.95
Return on Assets5.834.4
Return on Equity8.075.91
Debt Q2 FY17 Q2 FY16
Current Ratio3.043.34
Debt/Capital0.050.06
Interest Expense0.140.14
Interest Coverage120.06104.31


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)48.3248.71
Div / share0.090.09
EPS0.260.21
Book value / share10.09.73
Institutional Own % n/a n/a
Avg Daily Volume343374.0337624.0

Valuation


BUY. ADTRAN INC's P/E ratio indicates a premium compared to an average of 24.53 for the Communications Equipment industry and a premium compared to the S&P 500 average of 24.66. For additional comparison, its price-to-book ratio of 2.38 indicates a discount versus the S&P 500 average of 3.07 and a discount versus the industry average of 3.46. 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 29.02 Peers 24.53   ADTN 27.38 Peers 15.04

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 24.79 Peers 21.77   ADTN 2.61 Peers 1.09

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ADTN 2.38 Peers 3.46   ADTN 43.85 Peers 10.25

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ADTN 1.67 Peers 3.07   ADTN 14.09 Peers 11.02

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

ADTN has a sales growth rate that significantly exceeds its peers.

 

 

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