ADTN : NASDAQ : Technology
$21.0 -0.15 | -0.71%
Today's Range: 20.85 - 21.15
Avg. Daily Volume: 318900.0
03/28/17 - 3:59 PM ET

Financial Analysis


ADTRAN INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged 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 1.83 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

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

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)162.99139.01
EBITDA ($mil)8.436.31
EBIT ($mil)4.292.83
Net Income ($mil)7.575.72


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)123.08118.95
Total Assets ($mil)667.24632.9
Total Debt ($mil)27.828.9
Equity ($mil)479.52480.16


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin45.9847.42
EBITDA Margin5.174.53
Operating Margin2.632.03
Sales Turnover0.950.95
Return on Assets5.272.94
Return on Equity7.343.88
Debt Q4 FY16 Q4 FY15
Current Ratio2.793.57
Debt/Capital0.050.06
Interest Expense0.140.15
Interest Coverage30.1819.09


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)48.4749.56
Div / share0.090.09
EPS0.160.12
Book value / share9.899.69
Institutional Own % n/a n/a
Avg Daily Volume317242.0372873.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 40.97 for the Communications Equipment industry and a premium compared to the S&P 500 average of 26.33. For additional comparison, its price-to-book ratio of 2.15 indicates a discount versus the S&P 500 average of 2.93 and a discount versus the industry average of 3.45. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, ADTRAN INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ADTN 29.18 Peers 40.97   ADTN 24.58 Peers 17.74

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

ADTN is trading at a significant discount 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 23.41 Peers 19.16   ADTN 10.53 Peers 1.01

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 2.15 Peers 3.45   ADTN 97.29 Peers 5.61

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 1.62 Peers 3.31   ADTN 6.11 Peers 21.16

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

 

 

Latest Stock Upgrades/Downgrades