ADEIA INC (ADEA) Stock Fundamental Analysis
USA - NASDAQ:ADEA - US98390M1036 - Common Stock
12.39 USD
+0.04 (+0.32%)
Taking everything into account, ADEA scores 6 out of 10 in our fundamental rating. ADEA was compared to 281 industry peers in the Software industry. ADEA scores excellent on profitability, but there are some minor concerns on its financial health. ADEA scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, ADEA could be worth investigating further 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.
In the past 5 years ADEA always reported a positive cash flow from operatings.
1.2 Ratios
ADEA has a better Return On Assets (6.87%) than 76.51% of its industry peers.
ADEA's Return On Equity of 17.74% is amongst the best of the industry. ADEA outperforms 85.77% of its industry peers.
With an excellent Return On Invested Capital value of 12.05%, ADEA belongs to the best of the industry, outperforming 86.83% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ADEA is in line with the industry average of 12.08%.
The last Return On Invested Capital (12.05%) for ADEA is above the 3 year average (11.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 17.74% | ||
| ROIC | 12.05% |
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
With an excellent Profit Margin value of 19.32%, ADEA belongs to the best of the industry, outperforming 82.92% of the companies in the same industry.
Looking at the Operating Margin, with a value of 38.46%, ADEA belongs to the top of the industry, outperforming 95.37% of the companies in the same industry.
In the last couple of years the Operating Margin of ADEA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.46% | ||
| PM (TTM) | 19.32% | ||
| 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
ADEA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ADEA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ADEA has been increased compared to 5 years ago.
The debt/assets ratio for ADEA has been reduced compared to a year ago.
2.2 Solvency
ADEA has an Altman-Z score of 2.31. This is not the best score and indicates that ADEA is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ADEA (2.31) is comparable to the rest of the industry.
The Debt to FCF ratio of ADEA is 2.36, which is a good value as it means it would take ADEA, 2.36 years of fcf income to pay off all of its debts.
ADEA has a Debt to FCF ratio of 2.36. This is in the better half of the industry: ADEA outperforms 66.90% of its industry peers.
ADEA has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.01, ADEA is not doing good in the industry: 75.09% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for ADEA, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 2.31 |
ROIC/WACC1.04
WACC11.58%
2.3 Liquidity
A Current Ratio of 3.72 indicates that ADEA has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.72, ADEA belongs to the best of the industry, outperforming 81.49% of the companies in the same industry.
A Quick Ratio of 3.72 indicates that ADEA has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.72, ADEA belongs to the best of the industry, outperforming 81.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.72 | ||
| Quick Ratio | 3.72 |
3. Growth
3.1 Past
ADEA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.76%, which is quite good.
The earnings per share for ADEA have been decreasing by -16.88% on average. This is quite bad
ADEA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.53%.
ADEA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.07% yearly.
EPS 1Y (TTM)17.76%
EPS 3Y-14.47%
EPS 5Y-16.88%
EPS Q2Q%3.7%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y-24.61%
Revenue growth 5Y6.07%
Sales Q2Q%1.44%
3.2 Future
The Earnings Per Share is expected to grow by 12.02% on average over the next years. This is quite good.
Based on estimates for the next years, ADEA will show a small growth in Revenue. The Revenue will grow by 6.76% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
ADEA is valuated reasonably with a Price/Earnings ratio of 9.83.
ADEA's Price/Earnings ratio is rather cheap when compared to the industry. ADEA is cheaper than 87.54% of the companies in the same industry.
ADEA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.51.
Based on the Price/Forward Earnings ratio of 8.21, the valuation of ADEA can be described as reasonable.
ADEA's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADEA is cheaper than 90.04% of the companies in the same industry.
ADEA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.83 | ||
| Fwd PE | 8.21 |
4.2 Price Multiples
91.81% 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 cheaper than 96.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.3 | ||
| EV/EBITDA | 7.9 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ADEA has a very decent profitability rating, which 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)0.72
PEG (5Y)N/A
EPS Next 2Y9.03%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
ADEA has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of ADEA has falen by -20.17%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ADEA's Dividend Yield is rather good when compared to the industry average which is at 42.41. ADEA pays more dividend than 93.24% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.44, ADEA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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
29.69% of the earnings are spent on dividend by ADEA. This is a low number and sustainable payout ratio.
DP29.69%
EPS Next 2Y9.03%
EPS Next 3Y12.02%
NASDAQ:ADEA (11/19/2025, 2:58:18 PM)
12.39
+0.04 (+0.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.96%
Inst Owner Change-1.35%
Ins Owners1.6%
Ins Owner Change9.86%
Market Cap1.36B
Revenue(TTM)379.91M
Net Income(TTM)73.39M
Analysts82
Price Target20.15 (62.63%)
Short Float %2.7%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend0.2
Dividend Growth(5Y)-24.17%
DP29.69%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.92%
Min EPS beat(2)-23.53%
Max EPS beat(2)1.7%
EPS beat(4)3
Avg EPS beat(4)-3.12%
Min EPS beat(4)-23.53%
Max EPS beat(4)8.08%
EPS beat(8)6
Avg EPS beat(8)-0.14%
EPS beat(12)10
Avg EPS beat(12)10.21%
EPS beat(16)12
Avg EPS beat(16)11.02%
Revenue beat(2)0
Avg Revenue beat(2)-9.98%
Min Revenue beat(2)-14.95%
Max Revenue beat(2)-5%
Revenue beat(4)1
Avg Revenue beat(4)-5.26%
Min Revenue beat(4)-14.95%
Max Revenue beat(4)2.29%
Revenue beat(8)2
Avg Revenue beat(8)-5.96%
Revenue beat(12)4
Avg Revenue beat(12)-2.55%
Revenue beat(16)4
Avg Revenue beat(16)-8.86%
PT rev (1m)0%
PT rev (3m)1.28%
EPS NQ rev (1m)-11.56%
EPS NQ rev (3m)-11.23%
EPS NY rev (1m)0%
EPS NY rev (3m)3.5%
Revenue NQ rev (1m)-13.37%
Revenue NQ rev (3m)-13.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.83 | ||
| Fwd PE | 8.21 | ||
| P/S | 3.57 | ||
| P/FCF | 7.3 | ||
| P/OCF | 6.59 | ||
| P/B | 3.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.9 |
EPS(TTM)1.26
EY10.17%
EPS(NY)1.51
Fwd EY12.18%
FCF(TTM)1.7
FCFY13.7%
OCF(TTM)1.88
OCFY15.17%
SpS3.47
BVpS3.78
TBVpS-1.5
PEG (NY)0.72
PEG (5Y)N/A
Graham Number10.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 17.74% | ||
| ROCE | 14.71% | ||
| ROIC | 12.05% | ||
| ROICexc | 13.63% | ||
| ROICexgc | 39.84% | ||
| OM | 38.46% | ||
| PM (TTM) | 19.32% | ||
| GM | N/A | ||
| FCFM | 48.88% |
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 Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 2.04 | ||
| Cap/Depr | 34.04% | ||
| Cap/Sales | 5.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100.52% | ||
| Profit Quality | 253% | ||
| Current Ratio | 3.72 | ||
| Quick Ratio | 3.72 | ||
| Altman-Z | 2.31 |
F-Score9
WACC11.58%
ROIC/WACC1.04
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)10.53%
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 1Y37.32%
EBIT growth 3Y77.36%
EBIT growth 5YN/A
EBIT Next Year4.91%
EBIT Next 3Y6.9%
EBIT Next 5YN/A
FCF growth 1Y21.92%
FCF growth 3Y-4.84%
FCF growth 5Y4.04%
OCF growth 1Y33.21%
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 9 / 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 7 / 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.