Should I Buy ADT Stock in 2026?

Data-driven analysis and honest assessment for ADT Inc

Analysis Updated:
HOLDMixed signals - suitable for existing holders

Current Price: $7.98P/E: 11.3

Decision Score

6.2/10

Hold

Based on 6 fundamental factors

Score Breakdown:

Valuation (20%)8/10

Attractive P/E of 11.3

Growth (20%)5/10

Slow growth of 0%

Profitability (20%)4/10

Thin margins (0% net)

Financial Health (15%)5/10

Financial health data limited

Cash Flow (15%)10/10

Excellent FCF yield of 27.6%

Insider Activity (10%)5/10

No recent insider activity

Key Investment Metrics

Current Price

$7.98

P/E Ratio

11.30

Revenue Growth

0.0%

Profit Margin

0.1%

Market Cap

$6.8B

Dividend Yield

0.03%

How ADT Compares to Competitors

Understanding how ADT stacks up against peers helps inform your investment decision.

How ADT Compares to Peers

Upcoming Events for ADT

+5 Reasons TO Buy ADT

1. High gross margins of 81%

strong

Gross margins above 50% typically indicate strong brand value or intellectual property moats.

2. High free cash flow yield of 27.6%

strong

FCF yield above 5% means substantial cash generation for dividends, buybacks, or reinvestment.

3. Attractively valued at 11.3x earnings

moderate

A P/E ratio of 11.3 is below the market average of ~20x, suggesting the stock may be undervalued.

-5 Reasons NOT to Buy ADT

1. Thin profit margins of 0.1%

high risk

Low margins provide little cushion against cost increases or pricing pressure.

2. Minimal revenue growth

low risk

Growth of 0.0% barely keeps pace with inflation.

Who Should Buy ADT?

Investment Profile

Risk Level

High

Recommended Holding Period

3-5 years

Best For:

  • Value Investors

    P/E of 11.3 offers margin of safety

Not Suitable For:

  • Growth Investors

    Limited 0% growth may disappoint

  • Income-Focused Retirees

    Low 0.0% yield

  • Risk-Averse Investors

    High risk may cause uncomfortable volatility

  • Large Position Traders

    Lower liquidity may impact execution

Consider These Alternatives

If you're interested in ADT, compare these Industrials peers:

Pro tip: Compare ADT directly with competitors using our comparison tool to see which stock better fits your criteria.

Get the Full Picture

Access AI-powered insights, DCF valuations, insider trading data, and real-time analysis for ADT

Frequently Asked Questions

What is ADT stock price today?

ADT (ADT Inc) stock is trading at $7.98 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).

Is ADT stock going up or down today?

ADT stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.

Should I buy ADT stock now?

The decision to buy ADT depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.

Is ADT a buy, hold, or sell right now?

Our AI-powered analysis provides buy/hold/sell recommendations for ADT based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.

Is ADT stock overvalued or undervalued?

ADT currently trades at a P/E ratio of 11.30, which may suggest attractive valuation. Our DCF calculator provides intrinsic value estimates to help determine if ADT is fairly priced.

What is ADT's P/E ratio?

ADT has a price-to-earnings (P/E) ratio of 11.30, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.

What is ADT's market cap?

ADT (ADT Inc) has a market capitalization of $6.77 billion, making it a small-cap stock.

What is ADT's price to book ratio?

ADT trades at a price-to-book (P/B) ratio of 1.85, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.

Similar Investment Decisions

Explore investment analyses for stocks similar to ADT Inc

Explore Categories

Disclaimer

This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.