Fundamental analysis: ADTRAN Holdings, Inc. (ADTN)

Awarener score: 5.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Poor) and growth (Very good), and the company's inclination to return cash to the stockholders (Very poor).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

Business has been growing at a very good pace. It's been great when measured against peer companies.
ADTRAN Holdings, Inc. business varies, ups and downs are rather normal. Risk is sufficient. It looks worse than most rivals.

Margins score: 4.3

ADTN profit margins -on goods and services sold- are usually sufficient. They stand slightly better than rival companies.
Business profit on sales tends to be meagre. It's below average when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually meagre. They remain lacking compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be meagre in relation to total revenues. They're still somewhat worse than similar companies.
Profits -before income taxes- are usually meagre considering total sales, and remain almost average when measured against rivals.
Total net profit tends to be meagre when confronted to sales. Company stands almost average when measured against comparable firms.

Growth score: 1.7

ADTRAN Holdings, Inc. profit -on goods and services sold- has been growing at a normal pace. It's been in good shape compared to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 4.0

ADTN had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
Research and development expenses consume some portion of revenues. It's substantially worse when measured against competitors.
The company grows modestly in relation to research and development efforts. It stands in good shape compared to rival companies.

Profitability score: 4.0

ADTRAN Holdings, Inc. usually gets low returns on the resources it controls. It proves below average when measured against peer firms.
The company normally gets low proceeds -on the resources directly invested in the business-. They remain lacking compared to similar companies.
Profitability -in relation to owned resources- is usually lacking. It ranks almost average when measured against competitors.
In the past, got low returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's below average when measured against comparable enterprises.

Usage of Funds score: 4.3

ADTN usually uses a significant portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is abundant. It stands below average when measured against rival firms.
The company is usually replacing part of the property, plant, and equipment that gets old, keeping some funds for something else. It can't keep forever, which is weak when measured against industry peers.
In the past twelve months it paid run-of-the-mill dividends, considering the current stock price. It came slightly worse than competitors.
In recent years, has cut back dividend payments. It could be traversing challenging times. The company has behaved lacking compared to similar firms.
The company usually uses some portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects take a nosedive. Sustainability looks somewhat worse than comparable companies.
The company usually significantly enlarges the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a weak position compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 3.9

ADTRAN Holdings, Inc. intangible assets (like brands and goodwill) represent a significant portion of resources controlled, according to accounting books. There could be significant difficulties in liquidating them if the company ever gets in financial distress. It happens to be weak when measured against peer companies.
The company has roughly double short-term resources than short-term obligations. Liquidity concerns are normally not an issue. It turns to be close to average when compared to similar firms.
A very minor portion of resources controlled were provided for with financial debt. Financial strength is solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains somewhat better than rival firms.
Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks weak when measured against rivals.
For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's in a weak position compared to peer firms.
For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is mediocre against similar enterprises.
Usually, sales are on somewhat more than three months credit. It still ranks substantially worse when measured against peers.
Normally has approximately six months of sales worth in inventory. It comes up as a disappointment compared to competitors.
On average, it takes plenty of months from the purchase to charging customers. It happens to be bottom tier against peers.
On average pays suppliers approximately four months or higher after the purchase. It ranks great when measured against industry peers.
The company pays its suppliers six months or more before charging its customers, so there's abundant money invested in working capital. It's in a very weak position compared to similar companies.
Has usually been losing money on the business, so net interest expenses must be paid by increasing borrowings, which is unsustainable in the long run. The situation is very risky for both creditors and shareholders, profitability must increase. It stands bottom tier against rival firms.
Business earnings have usually been extremely low when measured against loans taken. Even severely cutting back reinvesting in the business, it could take more than twenty years to repay the obligations. Additional stockholders' funding may be a quicker way, but at the cost of increasing the mouths to feed on the eventual pie of profits. It ranks substantially worse when measured against comparable enterprises.
Revenues are very good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements allows the company to keep more money to reward stockholders in the long run. It looks close to average when compared to similar firms.
Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still mediocre against peer companies.

Valuation score: 4.6

ADTRAN Holdings, Inc. reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains lacking compared to peers.
In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands top-notch against similar companies.
The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still similar to industry firms.
In the past twelve months, the company has largely enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among a lot more stockholders. It came up a disappointment compared to peer ventures.
The company has neither net debt nor net cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks slightly better than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a more than one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks rather normal in relation to rival firms.
The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains somewhat better than peer firms.
In the past twelve months, the operating business lost some money. It happens to be almost average when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown a somewhat low earnings power ability when measured against the current stock price and financial position. It's still lacking compared to peer companies.

Total score: 4.0

Company at a glance: ADTRAN Holdings, Inc. (ADTN)

Sector, industry: Technology, Communication Equipment

Market Cap: 1.23 billions

Revenues TTM: 1.03 billions

ADTRAN Holdings, Inc., through its subsidiaries, provides end-to-end fiber networking solutions for communications service provider, enterprises, and government customers in the United States, Germany, the United Kingdom, Mexico, and internationally. It operates through two segments, Network Solutions, and Services & Support. The company offers fiber access and fiber to the node platforms; transceivers, cables, and other miscellaneous materials; passive optical network optical line terminals; fiber to the distribution point Gfast distribution point units; cabinet and outside plant enclosures and services; packet optical transports; fixed wireless access platforms; and network management and subscriber services, and control and orchestration software. It also provides broadband customer premises solutions, ethernet switches and routers, residential gateways, cloud-based software-as-a-service management platforms, virtual wireless local area networks, Internet of Things gateways, pre-sale and post-sale technical support, and multi-gigabit mesh Wi-Fi gateways. In addition, the company offers time division multiplexed and asynchronous transfer mode-based aggregation systems and customer devices; and high-bit-rate and asymmetric digital subscriber line, and other technologies. Further, it provides other access and aggregation, subscriber and experience, and traditional and other products, software, and services. Additionally, the company engages in the provision of planning, engineering, program management, maintenance, installation, and commissioning services to implement customer network solutions; and customer devices solutions into consumer, small business, and enterprise locations. ADTRAN Holdings, Inc. is headquartered in Huntsville, Alabama.