ADTADT Inc.
Is the business good?
The checks split: earnings fully cash-backed (2.3×) and margins widening, but returns that lean on debt.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 17% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ADT?
ADT Inc. earns 9.1% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 0.12 points above what the capital costs: growth creates value
- Operating margin
- 25%
Operating margin · Security & Protection Services median 13% · 12 months to Q2 2026
- Cash conversion
- 2.33×
Cash conversion · 1.99× a year ago · operating cash flow covers the operating profit after tax
| Year | Operating margin |
|---|---|
| FY2020 | 0.76% |
| FY2021 | 0.23% |
| FY2022 | 17% |
| FY2023 | 25% |
| FY2024 | 25% |
| FY2025 | 26% |
Details›
- Operating margin12 months to Q2 2026
- 25%
- Net margin12 months to Q2 2026
- 12%
- Free cash flow margin
- 38%
- Revenue, trailing twelve months
- $5.16B
- Free cash flow, trailing twelve months
- $1.97B
- Net income, trailing twelve months
- $613M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 9.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Security & Protection Services
Ranks #7 of 10 by RyuScore