Aug. 11 at 9:08 PM
$ADTN — SELL
Revenue fell 13% to
$226M in the latest quarter, while gross margin was only 34.6% and operating margin stayed negative at -8.1%, leaving little room for a rerating.
Adjusted EBITDA was just
$5M, or 2.2% of sales, versus
$13M of interest expense and
$1.1B of debt, so leverage is still the core problem.
Free cash flow was negative
$18M, and cash of
$107M is thin against
$1.1B of borrowings, which keeps balance-sheet risk elevated.
At roughly 1.0x sales, the stock is not cheap enough to ignore subscale growth, weak margins, and persistent cash burn.
Full research: https://lf0.com/research/adtran-holdings-stock-analysis-adtn/
