Is the business good?
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.
9.1%
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 18% · 12 months to Q2 2026
- Cash conversion
- 3.21×
Cash conversion · 2.94× a year ago · every dollar of reported profit arrived as cash, and more
| 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 from the cash flow statement.
Security & Protection Services
Ranks #3 of 7 by Smart Score