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ADT

ADT
59
Security & Protection Services · Industrials
Winston Score
59
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Good
Growth
Mixed
Cash Flow
Exceptional
Stability
Mixed
Valuation
Strong
Dividends
Mixed

Winston Score History

The full picture

ADT Inc. is a home and business security company. It sells alarm systems, cameras, smart locks, and monitoring services to homeowners and small businesses across the United States. ADT is one of the oldest and largest security brands in the country, with roots going back to 1874.

ADT makes most of its money through recurring monthly fees that customers pay for professional monitoring — meaning ADT watches for break-ins, fires, and other emergencies around the clock. The company operates almost entirely in the U.S. and has roughly 6 million customers under contract. Its main competitive advantage is its large installed base and brand recognition, though it faces growing competition from cheaper DIY options like Ring and SimpliSafe. The key risk is customer cancellations, called "attrition," which can be costly because ADT spends heavily upfront to install equipment before earning back that cost over time through monthly fees.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+1.9% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+0.0% YoY

YoY Growth Rate

Slow EPS growth

Insider Activity

31.6%ownership

Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$4M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

ADT is growing revenue at 2% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
53.4%
Healthy — 53.4% gross margin
Profit after running costs
Operating Margin
24.0%
Excellent — 24.0% operating margin
Return on the money invested
ROCE
11.5%
Below par — 11.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+2.1%
Nearly flat sales (+2.1% YoY)
Profit growth
EPS YoY
+8.5%
Earnings growing (+8.5% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
452%
Turns 452% of profit into real cash
Spare cash per sale
FCF Margin
47.8%
Converts sales into free cash efficiently (47.8%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
2.21
Heavy debt load (2.21)
Covers its interest
Interest Cover
3.19x
Tight — interest eats into profit (3.2x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
9.6x
no trend
Attractive valuation — P/E 9.6

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
+1.1
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend
Dividend Yield
2.81%
no trend
Moderate income — 2.81% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
+0.0%
no trend
Dividend flat

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