Building security and alarm solutions provider ADT Inc. (ADT) has been aggressively investing in M&A to scale up its venture into the commercial side of the security industry. While we see this as an intelligent tactical move, the company's high debt load and pressure on its legacy residential business will likely negate a lot of the near term results generated by the commercial business. For these reasons, we don't see a sustainable investment opportunity in ADT Inc. at this time.
Growing The Commercial Business
ADT has made a strong (in our opinion) strategic