Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

ADT Inc. (ADT)

Company Dividend Discount ModelIndustry: Security & Protection ServicesSector: Industrials

Valuation Snapshot

Stable Growth$7.03 - $11.14$8.90
Multi-Stage$17.91 - $19.75$18.81
Blended Fair Value$13.86
Current Price$8.71
Upside59.10%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-20.24%0.00%0.200.140.140.130.120.620.090.820.000.00
YoY Growth--41.75%1.15%9.26%6.42%-80.64%610.94%-89.41%0.00%0.00%0.00%
Dividend Yield--2.45%2.17%1.92%1.68%1.42%14.31%1.33%10.35%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)640.56
(-) Cash Dividends Paid (M)191.85
(=) Cash Retained (M)448.71
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)128.1180.0748.04
Cash Retained (M)448.71448.71448.71
(-) Cash Required (M)-128.11-80.07-48.04
(=) Excess Retained (M)320.59368.64400.66
(/) Shares Outstanding (M)913.55913.55913.55
(=) Excess Retained per Share0.350.400.44
LTM Dividend per Share0.210.210.21
(+) Excess Retained per Share0.350.400.44
(=) Adjusted Dividend0.560.610.65
WACC / Discount Rate5.82%5.82%5.82%
Growth Rate-2.00%-1.00%0.00%
Fair Value$7.03$8.90$11.14
Upside / Downside-19.32%2.20%27.88%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)640.56634.15627.81621.53615.32609.16627.44
Payout Ratio29.95%41.96%53.97%65.98%77.99%90.00%92.50%
Projected Dividends (M)191.85266.09338.83410.09479.89548.25580.38

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.82%5.82%5.82%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)248.91251.45253.99
Year 2 PV (M)296.49302.57308.71
Year 3 PV (M)335.67346.05356.64
Year 4 PV (M)367.43382.66398.36
Year 5 PV (M)392.67413.12434.41
PV of Terminal Value (M)14,723.9615,490.6716,288.99
Equity Value (M)16,365.1217,186.5118,041.10
Shares Outstanding (M)913.55913.55913.55
Fair Value$17.91$18.81$19.75
Upside / Downside105.67%115.99%126.73%

High-Yield Dividend Screener

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