ADEIA INC (ADEA) Stock Fundamental Analysis
USA - NASDAQ:ADEA - US98390M1036 - Common Stock
13.89 USD
-0.11 (-0.79%)
13.89 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ADEA. ADEA was compared to 284 industry peers in the Software industry. Both the profitability and the financial health of ADEA get a neutral evaluation. Nothing too spectacular is happening here. ADEA scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make ADEA suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year ADEA was profitable.
In the past year ADEA had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ADEA reported negative net income in multiple years.
ADEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ADEA (7.75%) is better than 80.99% of its industry peers.
ADEA has a Return On Equity of 20.82%. This is amongst the best in the industry. ADEA outperforms 86.97% of its industry peers.
The Return On Invested Capital of ADEA (11.87%) is better than 89.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ADEA is in line with the industry average of 11.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.75% | ||
| ROE | 20.82% | ||
| ROIC | 11.87% |
ROA(3y)-4.15%
ROA(5y)-1.86%
ROE(3y)-21%
ROE(5y)-11.4%
ROIC(3y)11.98%
ROIC(5y)8.68%
1.3 Margins
The Profit Margin of ADEA (22.15%) is better than 86.62% of its industry peers.
The Operating Margin of ADEA (38.12%) is better than 95.07% of its industry peers.
ADEA's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.12% | ||
| PM (TTM) | 22.15% | ||
| GM | N/A |
OM growth 3Y135.27%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ADEA is creating some value.
Compared to 1 year ago, ADEA has more shares outstanding
Compared to 5 years ago, ADEA has more shares outstanding
ADEA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.37 indicates that ADEA is not a great score, but indicates only limited risk for bankruptcy at the moment.
ADEA has a Altman-Z score (2.37) which is comparable to the rest of the industry.
ADEA has a debt to FCF ratio of 2.44. This is a good value and a sign of high solvency as ADEA would need 2.44 years to pay back of all of its debts.
ADEA has a Debt to FCF ratio of 2.44. This is in the better half of the industry: ADEA outperforms 66.20% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that ADEA has dependencies on debt financing.
ADEA has a worse Debt to Equity ratio (1.06) than 75.70% of its industry peers.
Although ADEA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 2.44 | ||
| Altman-Z | 2.37 |
ROIC/WACC1.03
WACC11.48%
2.3 Liquidity
A Current Ratio of 3.09 indicates that ADEA has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.09, ADEA is doing good in the industry, outperforming 77.46% of the companies in the same industry.
ADEA has a Quick Ratio of 3.09. This indicates that ADEA is financially healthy and has no problem in meeting its short term obligations.
ADEA has a Quick ratio of 3.09. This is in the better half of the industry: ADEA outperforms 78.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.09 | ||
| Quick Ratio | 3.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.76% over the past year.
The earnings per share for ADEA have been decreasing by -16.88% on average. This is quite bad
Looking at the last year, ADEA shows a decrease in Revenue. The Revenue has decreased by -3.28% in the last year.
The Revenue has been growing slightly by 6.07% on average over the past years.
EPS 1Y (TTM)17.76%
EPS 3Y-14.47%
EPS 5Y-16.88%
EPS Q2Q%3.7%
Revenue 1Y (TTM)-3.28%
Revenue growth 3Y-24.61%
Revenue growth 5Y6.07%
Sales Q2Q%1.44%
3.2 Future
ADEA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.02% yearly.
The Revenue is expected to grow by 6.76% on average over the next years.
EPS Next Y13.75%
EPS Next 2Y9.03%
EPS Next 3Y12.02%
EPS Next 5YN/A
Revenue Next Year8.77%
Revenue Next 2Y6.84%
Revenue Next 3Y6.76%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.02, the valuation of ADEA can be described as reasonable.
Based on the Price/Earnings ratio, ADEA is valued cheaply inside the industry as 88.03% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.83, ADEA is valued rather cheaply.
A Price/Forward Earnings ratio of 9.20 indicates a reasonable valuation of ADEA.
Based on the Price/Forward Earnings ratio, ADEA is valued cheaper than 90.49% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.68. ADEA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 9.2 |
4.2 Price Multiples
91.55% of the companies in the same industry are more expensive than ADEA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ADEA is valued cheaply inside the industry as 95.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.27 | ||
| EV/EBITDA | 9.06 |
4.3 Compensation for Growth
ADEA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ADEA may justify a higher PE ratio.
ADEA's earnings are expected to grow with 12.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y9.03%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.43%, ADEA has a reasonable but not impressive dividend return.
ADEA's Dividend Yield is rather good when compared to the industry average which is at 36.34. ADEA pays more dividend than 93.66% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, ADEA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
The dividend of ADEA decreases each year by -24.17%.
ADEA has paid a dividend for at least 10 years, which is a reliable track record.
ADEA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-24.17%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
25.96% of the earnings are spent on dividend by ADEA. This is a low number and sustainable payout ratio.
DP25.96%
EPS Next 2Y9.03%
EPS Next 3Y12.02%
13.89
-0.11 (-0.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.96%
Inst Owner Change-0.02%
Ins Owners1.6%
Ins Owner Change12.84%
Market Cap1.52B
Revenue(TTM)376.02M
Net Income(TTM)83.88M
Analysts82
Price Target20.15 (45.07%)
Short Float %2.53%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend0.2
Dividend Growth(5Y)-24.17%
DP25.96%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.49%
Min EPS beat(2)1.28%
Max EPS beat(2)1.7%
EPS beat(4)3
Avg EPS beat(4)-5.22%
Min EPS beat(4)-31.95%
Max EPS beat(4)8.08%
EPS beat(8)7
Avg EPS beat(8)8.43%
EPS beat(12)10
Avg EPS beat(12)11.84%
EPS beat(16)13
Avg EPS beat(16)15.9%
Revenue beat(2)0
Avg Revenue beat(2)-4.19%
Min Revenue beat(2)-5%
Max Revenue beat(2)-3.39%
Revenue beat(4)1
Avg Revenue beat(4)-7.53%
Min Revenue beat(4)-24.04%
Max Revenue beat(4)2.29%
Revenue beat(8)3
Avg Revenue beat(8)-2.91%
Revenue beat(12)4
Avg Revenue beat(12)-2.05%
Revenue beat(16)4
Avg Revenue beat(16)-7.93%
PT rev (1m)0%
PT rev (3m)1.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.21%
EPS NY rev (1m)0%
EPS NY rev (3m)3.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 9.2 | ||
| P/S | 4.01 | ||
| P/FCF | 8.27 | ||
| P/OCF | 7.52 | ||
| P/B | 3.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.06 |
EPS(TTM)1.26
EY9.07%
EPS(NY)1.51
Fwd EY10.87%
FCF(TTM)1.68
FCFY12.09%
OCF(TTM)1.85
OCFY13.3%
SpS3.46
BVpS3.68
TBVpS-1.72
PEG (NY)0.8
PEG (5Y)N/A
Graham Number10.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.75% | ||
| ROE | 20.82% | ||
| ROCE | 14.49% | ||
| ROIC | 11.87% | ||
| ROICexc | 13.44% | ||
| ROICexgc | 40.95% | ||
| OM | 38.12% | ||
| PM (TTM) | 22.15% | ||
| GM | N/A | ||
| FCFM | 48.5% |
ROA(3y)-4.15%
ROA(5y)-1.86%
ROE(3y)-21%
ROE(5y)-11.4%
ROIC(3y)11.98%
ROIC(5y)8.68%
ROICexc(3y)13.32%
ROICexc(5y)9.66%
ROICexgc(3y)52.43%
ROICexgc(5y)41.49%
ROCE(3y)14.63%
ROCE(5y)10.6%
ROICexgc growth 3Y86.73%
ROICexgc growth 5YN/A
ROICexc growth 3Y130.93%
ROICexc growth 5YN/A
OM growth 3Y135.27%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 2.44 | ||
| Debt/EBITDA | 2.12 | ||
| Cap/Depr | 31.78% | ||
| Cap/Sales | 4.85% | ||
| Interest Coverage | 3.61 | ||
| Cash Conversion | 99.93% | ||
| Profit Quality | 218.95% | ||
| Current Ratio | 3.09 | ||
| Quick Ratio | 3.09 | ||
| Altman-Z | 2.37 |
F-Score9
WACC11.48%
ROIC/WACC1.03
Cap/Depr(3y)15.11%
Cap/Depr(5y)16.98%
Cap/Sales(3y)3.5%
Cap/Sales(5y)3.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.76%
EPS 3Y-14.47%
EPS 5Y-16.88%
EPS Q2Q%3.7%
EPS Next Y13.75%
EPS Next 2Y9.03%
EPS Next 3Y12.02%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.28%
Revenue growth 3Y-24.61%
Revenue growth 5Y6.07%
Sales Q2Q%1.44%
Revenue Next Year8.77%
Revenue Next 2Y6.84%
Revenue Next 3Y6.76%
Revenue Next 5YN/A
EBIT growth 1Y22.38%
EBIT growth 3Y77.36%
EBIT growth 5YN/A
EBIT Next Year4.91%
EBIT Next 3Y6.9%
EBIT Next 5YN/A
FCF growth 1Y0.52%
FCF growth 3Y-4.84%
FCF growth 5Y4.04%
OCF growth 1Y7.4%
OCF growth 3Y-3.28%
OCF growth 5Y4.65%
ADEIA INC / ADEA FAQ
What is the fundamental rating for ADEA stock?
ChartMill assigns a fundamental rating of 6 / 10 to ADEA.
What is the valuation status of ADEIA INC (ADEA) stock?
ChartMill assigns a valuation rating of 8 / 10 to ADEIA INC (ADEA). This can be considered as Undervalued.
What is the profitability of ADEA stock?
ADEIA INC (ADEA) has a profitability rating of 6 / 10.
Can you provide the financial health for ADEA stock?
The financial health rating of ADEIA INC (ADEA) is 6 / 10.
Can you provide the expected EPS growth for ADEA stock?
The Earnings per Share (EPS) of ADEIA INC (ADEA) is expected to grow by 13.75% in the next year.