ADT

ADT Inc.

TMT, Finance/Real Estate


Presented:02/15/2018
Price:11.69
Cap:$8.76B
Current Price:$6.86
Cap:N/A

Presented

Date02/15/2018
Price11.69
Market Cap$8.76B
Ent Value$18.32B
P/E RatioN/A
Book Value$4.36
Div Yield0%
Shares O/S748.95M
Ave Daily Vol10,191,122
Short Int7.61%

Current

Price$6.86
Market CapN/A
ADT Inc. provides monitored security, interactive home and business automation, and related monitoring services in the United States and Canada. It offers a set of burglary, video, access control, fire and smoke alarm, and medical alert solutions to residential, commercial, and multi-site customers. The company primarily provides professional monitored security solutions; and interactive home and business automation solutions that are designed to control access, react to movement, and sense carbon monoxide, flooding, and changes in temperature or other environmental conditions, as well as address personal emergencies, such as injuries, medical emergencies, or incapacitation. Its ADT Pulse solution allows customers to use their smart phones, tablets, and laptops to arm and disarm their security systems, adjust lighting or thermostat levels, view real-time video of their premises, and program customizable schedules for the management of a range of smart home products. In addition, it offers professional monitoring of third party devices through its ADT Canopy platform. Further, ADT platform integrates third-party hubs, DIY solutions, and Internet-of-Things devices to its professional monitoring network. The company was formerly known as Prime Security Services Parent, Inc. and changed its name to ADT Inc. in September 2017. ADT Inc. was incorporated in 2015 and is headquartered in Boca Raton, Florida.

Publicly traded companies mentioned herein: ADT Inc (ADT), Alphabet Inc (GOOG, GOOGL), Apollo Global Management LLC (APO), Verizon Communications Inc (VZ)

Highlights

The presenter is short shares of ADT (ADT), viewing current valuation as misrepresenting the nature of the business. He believes ADT’s business model makes it impossible to have strong organic growth while maintaining lower costs of acquisition and depressed churn rates. Though he views ADT as a “decent” business, current valuation bakes in unrealistic expectations. By his model, ADT shares are fairly valued at closer to $8, instead of $12 today.

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