Latest Ratios: P/E Ratio -12.8x · EV/EBITDA 9.6x · ROE -8.5%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $590M | $693M | $657M | $576M | $1.2B | $1.1B | $713M | $473M | $514M | $942M | $1.1B |
| Enterprise Value | $740M | $842M | $797M | $723M | $1.2B | $1.1B | $658M | $424M | $434M | $881M | $1.0B |
| P/E Ratio → | -12.79 | — | — | — | — | — | 300.20 | — | — | 39.49 | 31.04 |
| P/S Ratio | 0.54 | 0.64 | 0.71 | 0.50 | 1.14 | 1.97 | 1.41 | 0.89 | 0.97 | 1.41 | 1.72 |
| P/B Ratio | 1.12 | 1.33 | 1.20 | 0.55 | 0.90 | 3.11 | 1.91 | 1.24 | 1.15 | 1.89 | 2.28 |
| P/FCF | 6.02 | 7.07 | 17.12 | — | — | — | — | — | 10.61 | — | 53.21 |
| P/OCF | 4.55 | 5.34 | 6.35 | — | — | 368.73 | — | — | 9.09 | — | 26.05 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.78 | 0.86 | 0.63 | 1.18 | 1.88 | 1.30 | 0.80 | 0.82 | 1.32 | 1.63 |
| EV / EBITDA | 9.61 | 10.95 | — | — | — | 762.86 | 96.06 | — | — | 16.61 | 21.18 |
| EV / EBIT | — | — | — | — | — | — | — | — | — | 19.48 | 21.93 |
| EV / FCF | — | 8.59 | 20.75 | — | — | — | — | — | 8.96 | — | 50.63 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 38.3% | 38.3% | 35.1% | 28.8% | 31.9% | 38.8% | 43.0% | 41.3% | 38.5% | 45.6% | 45.8% |
| Operating Margin | -1.4% | -1.4% | -46.3% | -19.5% | -7.1% | -2.6% | -1.9% | -7.5% | -8.6% | 5.6% | 5.5% |
| Net Profit Margin | -4.2% | -4.2% | -49.8% | -23.3% | -0.2% | -1.5% | 0.5% | -10.0% | -3.7% | 3.6% | 5.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -8.5% | -8.5% | -57.5% | -22.8% | -0.2% | -2.4% | 0.6% | -12.8% | -4.1% | 4.9% | 7.3% |
| ROA | -3.8% | -3.8% | -32.3% | -14.8% | -0.2% | -1.6% | 0.4% | -9.0% | -3.0% | 3.6% | 5.4% |
| ROIC | -1.7% | -1.7% | -34.0% | -13.2% | -6.7% | -3.5% | -2.3% | -8.6% | -8.5% | 6.5% | 6.1% |
| ROCE | -1.8% | -1.8% | -37.5% | -15.3% | -7.6% | -3.5% | -2.3% | -8.5% | -8.5% | 6.8% | 6.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.47 | 0.47 | 0.39 | 0.22 | 0.11 | 0.01 | 0.01 | 0.06 | 0.06 | 0.05 | 0.06 |
| Debt / EBITDA | 3.18 | 3.18 | — | — | — | 2.36 | 0.78 | — | — | 0.48 | 0.55 |
| Net Debt / Equity | — | 0.29 | 0.25 | 0.14 | 0.03 | -0.15 | -0.15 | -0.13 | -0.18 | -0.12 | -0.11 |
| Net Debt / EBITDA | 1.94 | 1.94 | — | — | — | -38.54 | -8.00 | — | — | -1.15 | -1.08 |
| Debt / FCF | — | 1.52 | 3.63 | — | — | — | — | — | -1.65 | — | -2.58 |
| Interest Coverage | -0.62 | -0.62 | -19.08 | -13.33 | -19.65 | -184.44 | -1248.20 | -47.49 | -61.61 | 81.37 | 82.98 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.76 | 1.76 | 2.04 | 2.62 | 2.06 | 2.42 | 3.36 | 2.84 | 3.01 | 3.87 | 2.79 |
| Quick Ratio | 1.16 | 1.16 | 1.15 | 1.30 | 1.06 | 1.52 | 2.03 | 1.97 | 2.17 | 2.72 | 1.96 |
| Cash Ratio | 0.36 | 0.36 | 0.26 | 0.32 | 0.25 | 0.37 | 0.67 | 0.95 | 0.92 | 0.96 | 0.97 |
| Asset Turnover | — | 0.90 | 0.79 | 0.69 | 0.53 | 0.99 | 0.96 | 0.97 | 0.84 | 1.00 | 0.95 |
| Inventory Turnover | 3.10 | 3.10 | 2.29 | 2.27 | 1.63 | 2.46 | 2.30 | 3.16 | 3.26 | 2.96 | 3.29 |
| Days Sales Outstanding | — | 74.56 | 76.45 | 73.18 | 111.14 | 110.19 | 86.73 | 73.75 | 93.85 | 93.49 | 62.04 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | 3.7% | 2.0% | 1.6% | 2.4% | 3.6% | 3.4% | 1.8% | 1.6% |
| Payout Ratio | — | — | — | — | — | — | 728.9% | — | — | 72.9% | 49.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | 0.3% | — | — | 2.5% | 3.2% |
| FCF Yield | 16.6% | 14.1% | 5.8% | — | — | — | — | — | 9.4% | — | 1.9% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 3.0% | 1.8% | 2.4% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 3.7% | 2.0% | 1.6% | 2.6% | 3.7% | 6.4% | 3.7% | 4.0% |
| Shares Outstanding | — | $80M | $79M | $78M | $62M | $49M | $48M | $48M | $48M | $49M | $49M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ADTN stock.
ADTRAN Holdings Inc.'s current P/E ratio is -12.8x. The historical average is 32.8x.
ADTRAN Holdings Inc.'s current EV/EBITDA is 9.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 22.7x.
ADTRAN Holdings Inc.'s return on equity (ROE) is -8.5%. The historical average is 7.2%.
Based on historical data, ADTRAN Holdings Inc. is trading at a P/E of -12.8x. Compare with industry peers and growth rates for a complete picture.
ADTRAN Holdings Inc. has 38.3% gross margin and -1.4% operating margin.
ADTRAN Holdings Inc.'s Debt/EBITDA ratio is 3.2x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Persistent negative operating margins
Metrics are mathematically derived from official filings.
Margin Ceiling Capped by Hardware Mix
Gross margin has stabilized near 37-39% over the last five quarters, as reported in financial statements, yet operating margin remains negative at -3.6% in 2026Q2, indicating that cost absorption and integration expenses continue to suppress profitability.
The gross margin plateau of roughly 37-39% reflects ADTRAN's hardware-heavy revenue mix, which structurally lags software-centric peers like Calix at 56.8%. Despite revenue growth of 17.5% year-over-year, operating margin has been negative for six of the last seven quarters, suggesting that R&D and SG&A expenses are not scaling down proportionally. The net margin of -3.9% in 2026Q2, while improved from -18.9% in 2024Q4, still indicates that the company has not yet achieved the operating leverage needed to translate top-line recovery into bottom-line profitability.
Capital Returns Decaying Amid Integration
ROIC has remained negative for most of the past ten quarters, with 2026Q2 at -1.1%, as per reported figures, while ROE deteriorated to -2.2%, reflecting persistent losses and a shrinking equity base that has contracted 51% since 2024Q1.
The return on invested capital has been consistently negative, with the exception of a brief positive blip in 2026Q1, indicating that the combined entity is not yet generating returns above its cost of capital. The ROE of -2.2% in 2026Q2, though improved from -37.7% in 2024Q1, still underscores the erosion of shareholder value, as retained earnings have deepened to -$736.4M. The improvement from the trough suggests that the integration of ADVA is progressing, but the sustained negative returns imply that the company is still in a value-destructive phase, with margin recovery and asset efficiency yet to materialize.
Working Capital Drag Eases but Remains High
The cash conversion cycle has compressed from 194 days in 2024Q1 to 92 days in 2026Q2, as per quarterly data, driven by a reduction in days inventory outstanding from 199 to 107, yet it remains elevated relative to peers, indicating ongoing inventory digestion.
The improvement in the cash conversion cycle is a positive sign, as it suggests that ADTRAN is making progress in reducing excess inventory, which had ballooned to 199 days in early 2024. However, at 92 days, the cycle remains long, reflecting the lumpy nature of carrier orders and the hardware-intensive business model. Days sales outstanding have also improved from 88 to 72, but the company still ties up significant capital in working capital, which may limit cash generation and flexibility. The reduction in DIO is likely a result of deliberate inventory management, but it also indicates that customers are still in a destocking phase, which could pressure future revenue.
Leverage Creeps Higher as Equity Shrinks
Debt-to-equity has risen from 0.31 in 2024Q1 to 0.50 in 2026Q2, as reported in balance sheet data, while interest coverage turned negative at -0.87, indicating that operating income is insufficient to cover interest expenses.
The increase in leverage is not driven by new debt, as total debt has remained near $243M, but rather by the 51% contraction in equity due to cumulative losses. The negative interest coverage ratio of -0.87 in 2026Q2, though improved from -5.50 in 2024Q2, still signals that the company's operating earnings are not covering its interest obligations, which could become a concern if the recovery stalls. The D/EBITDA ratio of 15.66 is elevated, but this is partly due to depressed EBITDA; as profitability improves, this ratio should normalize. Investors should monitor whether the company can generate sufficient cash flow to service its debt without further eroding its equity base.
Liquidity Buffer Thins but Remains Adequate
The current ratio has declined from 2.46 in 2024Q1 to 1.79 in 2026Q2, as per financial statements, while cash reserves fell to $79.2M, indicating a shrinking but still adequate liquidity cushion for near-term obligations.
The current ratio of 1.79 remains above 1.0, suggesting that ADTRAN can cover its short-term liabilities with current assets, but the trend is concerning as the buffer has thinned over the past ten quarters. The quick ratio of 1.19, which excludes inventory, indicates that the company is not overly reliant on inventory to meet obligations, which is a positive sign given the high DIO. However, the decline in cash from $106.8M to $79.2M, combined with negative operating margins, suggests that the company may need to rely on external financing or further cost cuts if the recovery is delayed. The liquidity position appears adequate for now, but it warrants close monitoring given the ongoing integration costs and potential for continued losses.
Misapplied EV/EBITDA in a Turnaround
The EV/EBITDA multiple of 10.53, based on reported figures, is commonly used to value ADTRAN, but it is misleading given the company's negative operating margins and significant non-cash charges, which distort EBITDA as a proxy for cash flow.
In a post-merger integration phase, EBITDA is often inflated by add-backs for one-time costs and stock-based compensation, making the EV/EBITDA multiple appear more attractive than the underlying cash generation. For ADTRAN, the negative operating margin and the divergence between cumulative net losses of -$515.7M and positive operating cash flow of $271.4M over ten quarters highlight that EBITDA does not accurately reflect the company's earning power. A more appropriate metric would be EV/Invested Capital or a normalized EV/EBIT that adjusts for integration expenses and non-cash items, as this would better capture the true return on capital and the sustainability of profitability. Investors should be cautious when using EV/EBITDA for ADTRAN until the integration is complete and margins stabilize.