Adtran Networks SE Fundamental Analysis (XETRA: ADV.DE)
Adtran Networks SE Fundamental Analysis (XETRA: ADV.DE)
Adtran Networks SE (XETRA: ADV.DE) shows weak financial fundamentals with a PE ratio of 138.06, profit margin of 1.68%, and ROE of 2.29%. The company generates $0.5B in annual revenue with moderate year-over-year growth of 9.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ADV.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakADV.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateADV.DE shows balanced valuation metrics.
Growth Score
ExcellentADV.DE delivers strong and consistent growth momentum.
Financial Health Score
ExcellentADV.DE maintains a strong and stable balance sheet.
Profitability Score
ModerateADV.DE maintains healthy but balanced margins.
Key Financial Metrics
Is ADV.DE Expensive or Cheap?
P/E Ratio
ADV.DE trades at 138.06 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ADV.DE's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values Adtran Networks SE at 3.08 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.44 times EBITDA. This signals the market has high growth expectations.
How Well Does ADV.DE Make Money?
Net Profit Margin
For every $100 in sales, Adtran Networks SE keeps $1.68 as profit after all expenses.
Operating Margin
Core operations generate 1.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.29 in profit for every $100 of shareholder equity.
ROA
Adtran Networks SE generates $1.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Adtran Networks SE produces operating cash flow of $74.68M, showing steady but balanced cash generation.
Free Cash Flow
Adtran Networks SE generates strong free cash flow of $64.09M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.23 in free cash annually.
FCF Yield
ADV.DE converts 5.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
138.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How ADV.DE Stacks Against Its Sector Peers
| Metric | ADV.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 138.06 | 34.40 | Worse (Expensive) |
| ROE | 2.29% | 730.00% | Weak |
| Net Margin | 1.68% | -3110.00% (disorted) | Weak |
| Debt/Equity | 0.11 | 0.22 | Strong (Low Leverage) |
| Current Ratio | 1.90 | 6.05 | Neutral |
| ROA | 1.37% | 254.00% | Weak |
ADV.DE outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Adtran Networks SE's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-17.64%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-204.05%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-21.30%
Industry Style: Growth, Innovation, High Beta
Declining