ADT Exceeds Expectations with Strong Profit Margins and Growing Recurring Revenues

ADT has reported a 12.8% net profit margin, up from 11% last year, and a 23.3% annual earnings growth rate. However, this is below its five-year average of 67.7% per year. Annual revenue is forecast to grow 3.4%, slower than the broader US market's 10.5%. The company's Price-To-Earnings ratio stands at 10.1x, below industry and peer averages. Shares trade at $8.12, well below the estimated fair value of $19.45, suggesting the market may be pricing ADT below its fundamentals.