ADEIA INC (ADEA) Stock Fundamental Analysis
USA - NASDAQ:ADEA - US98390M1036 - Common Stock
12.86 USD
-0.28 (-2.13%)
12.86 USD
0 (0%)
Overall ADEA gets a fundamental rating of 6 out of 10. We evaluated ADEA against 281 industry peers in the Software industry. While ADEA has a great profitability rating, there are some minor concerns on its financial health. ADEA may be a bit undervalued, certainly considering the very reasonable score on growth 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.
ADEA had a positive operating cash flow in the past year.
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
The Return On Assets of ADEA (6.87%) is better than 77.22% of its industry peers.
With an excellent Return On Equity value of 17.74%, ADEA belongs to the best of the industry, outperforming 85.77% of the companies in the same industry.
ADEA has a Return On Invested Capital of 12.05%. This is amongst the best in the industry. ADEA outperforms 88.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADEA is in line with the industry average of 11.92%.
The 3 year average ROIC (11.98%) for ADEA is below the current ROIC(12.05%), indicating increased profibility in the last year.
| 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
ADEA has a Profit Margin of 19.32%. This is amongst the best in the industry. ADEA outperforms 82.92% of its industry peers.
ADEA has a better Operating Margin (38.46%) than 95.02% of its industry peers.
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
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
ADEA has an Altman-Z score of 2.38. 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.
ADEA has a Altman-Z score of 2.38. This is comparable to the rest of the industry: ADEA outperforms 55.16% of its industry peers.
ADEA has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as ADEA would need 2.36 years to pay back of all of its debts.
The Debt to FCF ratio of ADEA (2.36) is better than 66.55% of its industry peers.
A Debt/Equity ratio of 1.01 is on the high side and indicates that ADEA has dependencies on debt financing.
ADEA has a Debt to Equity ratio of 1.01. This is in the lower half of the industry: ADEA underperforms 74.73% of its industry peers.
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 | 2.38 |
ROIC/WACC1.05
WACC11.48%
2.3 Liquidity
A Current Ratio of 3.72 indicates that ADEA has no problem at all paying its short term obligations.
ADEA has a better Current ratio (3.72) than 81.85% of its industry peers.
A Quick Ratio of 3.72 indicates that ADEA has no problem at all paying its short term obligations.
ADEA has a Quick ratio of 3.72. This is amongst the best in the industry. ADEA outperforms 82.21% of its industry peers.
| 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.
Measured over the past years, ADEA shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.88% on average per year.
Looking at the last year, ADEA shows a quite strong growth in Revenue. The Revenue has grown by 10.53% in the last year.
Measured over the past years, ADEA shows a small growth in Revenue. The Revenue has been growing by 6.07% on average per year.
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
Based on estimates for the next years, ADEA will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.02% on average per year.
ADEA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.76% yearly.
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
The Price/Earnings ratio is 10.21, which indicates a very decent valuation of ADEA.
Compared to the rest of the industry, the Price/Earnings ratio of ADEA indicates a rather cheap valuation: ADEA is cheaper than 88.26% of the companies listed in the same industry.
ADEA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
The Price/Forward Earnings ratio is 8.52, which indicates a very decent valuation of ADEA.
Based on the Price/Forward Earnings ratio, ADEA is valued cheaper than 90.39% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ADEA to the average of the S&P500 Index (34.59), we can say ADEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 8.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADEA is valued cheaply inside the industry as 91.81% of the companies are valued more expensively.
96.09% of the companies in the same industry are more expensive than ADEA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.57 | ||
| EV/EBITDA | 8.32 |
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)0.74
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.
Compared to an average industry Dividend Yield of 41.08, ADEA pays a better dividend. On top of this ADEA pays more dividend than 93.24% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, 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 been paying a dividend for at least 10 years, so it has 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%
12.86
-0.28 (-2.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.96%
Inst Owner Change0.35%
Ins Owners1.6%
Ins Owner Change9.86%
Market Cap1.41B
Revenue(TTM)379.91M
Net Income(TTM)73.39M
Analysts82
Price Target20.15 (56.69%)
Short Float %2.53%
Short Ratio5.25
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)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 | 10.21 | ||
| Fwd PE | 8.52 | ||
| P/S | 3.7 | ||
| P/FCF | 7.57 | ||
| P/OCF | 6.84 | ||
| P/B | 3.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.32 |
EPS(TTM)1.26
EY9.8%
EPS(NY)1.51
Fwd EY11.74%
FCF(TTM)1.7
FCFY13.2%
OCF(TTM)1.88
OCFY14.61%
SpS3.47
BVpS3.78
TBVpS-1.5
PEG (NY)0.74
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 | 2.38 |
F-Score9
WACC11.48%
ROIC/WACC1.05
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.