ADT Inc (ADT, Financial) has experienced a notable shift in its stock performance recently. With a current market capitalization of $6.23 billion, the company's stock price stands at $6.76. Over the past week, ADT has seen a 9.56% gain, which is a significant turnaround considering the 15.20% loss over the past three months. When evaluating the company's valuation, the GF Value is currently $6.64, which is slightly below the current price, indicating that the stock is Fairly Valued. This is a change from three months ago when the stock was considered Modestly Undervalued with a past GF Value of $8.1.
Introduction to ADT Inc
ADT Inc, operating within the Business Services industry, is a leading provider of security and automation solutions in North America. The company's offerings span across residential, commercial, and multi-site customer segments, delivering a suite of services including burglary, video surveillance, access control, fire and smoke alarms, and medical alert systems. ADT's business is segmented into Consumer and Small Business (CSB), Commercial, and Solar, with the Commercial segment being the most significant revenue contributor. 
Assessing ADT's Profitability
ADT's Profitability Rank stands at 4/10, reflecting a moderate level of profitability within the industry. The company's Operating Margin is an impressive 15.76%, outperforming 79.87% of its industry peers. However, the Return on Equity (ROE) is relatively low at 1.15%, which is still better than 24.88% of industry peers. The Return on Assets (ROA) at 0.22% and Return on Invested Capital (ROIC) at 13.55% also indicate that ADT is more efficient than many of its competitors in generating returns from its assets and investments. Despite these strengths, ADT has only managed to achieve profitability in 2 of the past 10 years. 
Growth Prospects of ADT
The company's Growth Rank is also positioned at 4/10. ADT's 3-Year Revenue Growth Rate per Share has declined by 1.30%, which is still better than 32.48% of its industry counterparts. The 5-Year Revenue Growth Rate per Share shows a slight improvement at 2.40%, surpassing 46.47% of the industry. However, the company's Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at -5.32%, which, while not promising, is better than 3.64% of industry peers. This mixed growth performance suggests that ADT faces challenges in expanding its revenue streams over the long term. 
Notable Shareholders in ADT
ADT's shareholder base includes several prominent investors. John Rogers (Trades, Portfolio) holds the largest stake with 22,429,407 shares, representing 2.43% of the company. Leon Cooperman (Trades, Portfolio) follows with 3,100,000 shares, accounting for 0.34% share percentage. Joel Greenblatt (Trades, Portfolio) also has a stake in ADT, with 516,156 shares, which translates to a 0.06% share percentage. The involvement of these notable investors may signal confidence in ADT's market position and future prospects.
Competitive Landscape
When compared to its competitors, ADT holds a competitive market position. MSA Safety Inc (MSA, Financial) has a slightly higher market cap of $6.53 billion, while The Brink's Co (BCO, Financial) and Brady Corp (BRC, Financial) have market caps of $3.71 billion and $2.9 billion, respectively. ADT's market cap is indicative of its strong standing within the industry, though it faces stiff competition from these close rivals.
Conclusion
In summary, ADT Inc's recent stock performance has been a mix of short-term gains and medium-term losses, with the current valuation suggesting the stock is fairly priced. The company's profitability metrics are robust, particularly in terms of operating margin and ROIC, although its ROE and ROA are less impressive. Growth prospects appear challenging with negative projections for future revenue growth. The presence of significant investors like John Rogers (Trades, Portfolio), Leon Cooperman (Trades, Portfolio), and Joel Greenblatt (Trades, Portfolio) may provide some reassurance to potential investors. Finally, ADT's market position is solid when compared to its competitors, but it must navigate a competitive landscape to maintain and enhance its standing.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
