Adtran Networks SE

ADV.DE

Communication Equipment · Technology

Price

€23.00

+0.00 (+0.00%)

Market Cap

€1.20B

Exchange

Frankfurt Stock Exchange

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Exceptional

Stability

Exceptional

Valuation

Good

Dividends

Mixed

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Winston Score History

The full picture

Adtran Networks SE is a technology company that makes networking equipment for internet service providers (ISPs) and telecom companies. Its main products include fiber-optic access hardware and software that help carriers deliver broadband internet to homes and businesses. The company is a significant supplier of fiber-to-the-home (FTTH) equipment, competing in a global market driven by government-backed broadband expansion programs.

Adtran Networks earns revenue by selling hardware, software, and related services to telecom operators, with some recurring income from software licenses and support contracts. It operates primarily in Europe and North America, and was formed through the combination of ADTRAN Inc. and Adtran Networks (formerly Adva Optical Networking) in 2022. The company is currently unprofitable, with negative operating and returns on capital, and its key challenge is returning to profitability while managing pricing pressure from larger rivals like Nokia and Ericsson amid a slowdown in carrier spending.

Growth Profile

For growth stock investors

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

Revenue Growth

+21.6% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+104.3% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

€109M/ year

↓ Declining (-26% vs prior year)

22.7% of revenue

1.5x the sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

65.2%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

€34M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Growth + cash flow

Adtran Networks SE is a rare growth stock that's already generating positive cash flow while growing at 22%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

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.

Share count broadly stable

+0.7% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 51.7M (2021) → 52.1M (2025)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

35.1%

Modest — 35.1% gross margin

Profit after running costs

Operating Margin

1.5%

Thin — 1.5% operating margin

Return on the money invested

ROCE

1.7%

Weak — 1.7% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

+16.9%

Fast-growing sales (+16.9% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

862%

Turns 862% of profit into real cash

Spare cash per sale

FCF Margin

12.4%

Converts sales into free cash efficiently (12.4%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.05

Conservative — low debt load (0.05)

Covers its interest

Interest Cover

100.00x

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

139.1x

Expensive — P/E 139.1

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+12.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (139.1 → 127.0)

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Dividends

Dividend

Dividend Yield

2.23%

Moderate income — 2.23% yield

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

Dividend record

Dividend Growth

N/A

Data not available

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