ADEIA INC (ADEA)
US98390M1036 - Common Stock
Taking everything into account, ADEA scores 5 out of 10 in our fundamental rating. ADEA was compared to 279 industry peers in the Software industry. ADEA scores excellent on profitability, but there are some minor concerns on its financial health. ADEA has a bad growth rate and is valued cheaply. 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.
In multiple years ADEA reported negative net income over the last 5 years.
In the past 5 years ADEA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ADEA (4.32%) is better than 74.19% of its industry peers.
With an excellent Return On Equity value of 12.86%, ADEA belongs to the best of the industry, outperforming 83.51% of the companies in the same industry.
ADEA has a Return On Invested Capital of 9.98%. This is amongst the best in the industry. ADEA outperforms 87.46% of its industry peers.
ADEA had an Average Return On Invested Capital over the past 3 years of 8.74%. This is below the industry average of 11.28%.
The 3 year average ROIC (8.74%) for ADEA is below the current ROIC(9.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 12.86% | ||
| ROIC | 9.98% |
ROA(3y)-6.87%
ROA(5y)-4.23%
ROE(3y)-27.8%
ROE(5y)-16.95%
ROIC(3y)8.74%
ROIC(5y)N/A
1.3 Margins
ADEA has a better Profit Margin (12.86%) than 82.08% of its industry peers.
In the last couple of years the Profit Margin of ADEA has grown nicely.
ADEA has a Operating Margin of 32.85%. This is amongst the best in the industry. ADEA outperforms 96.77% of its industry peers.
In the last couple of years the Operating Margin of ADEA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.85% | ||
| PM (TTM) | 12.86% | ||
| GM | N/A |
OM growth 3Y18.96%
OM growth 5Y24.86%
PM growth 3Y1.73%
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 below the Cost of Capital (WACC), which means it is destroying value.
ADEA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ADEA has more shares outstanding
Compared to 1 year ago, ADEA has an improved debt to assets ratio.
2.2 Solvency
ADEA has an Altman-Z score of 1.90. 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's Altman-Z score of 1.90 is in line compared to the rest of the industry. ADEA outperforms 44.09% of its industry peers.
The Debt to FCF ratio of ADEA is 3.91, which is a good value as it means it would take ADEA, 3.91 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ADEA (3.91) is better than 62.01% of its industry peers.
A Debt/Equity ratio of 1.42 is on the high side and indicates that ADEA has dependencies on debt financing.
With a Debt to Equity ratio value of 1.42, ADEA is not doing good in the industry: 81.72% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.87
WACC11.5%
2.3 Liquidity
A Current Ratio of 3.00 indicates that ADEA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.00, ADEA is in the better half of the industry, outperforming 74.91% of the companies in the same industry.
A Quick Ratio of 3.00 indicates that ADEA has no problem at all paying its short term obligations.
ADEA has a Quick ratio of 3.00. This is in the better half of the industry: ADEA outperforms 74.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3 | ||
| Quick Ratio | 3 |
3. Growth
3.1 Past
ADEA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.07%.
The earnings per share for ADEA have been decreasing by -11.91% on average. This is quite bad
Looking at the last year, ADEA shows a very negative growth in Revenue. The Revenue has decreased by -11.42% in the last year.
Measured over the past years, ADEA shows a decrease in Revenue. The Revenue has been decreasing by -0.87% on average per year.
EPS 1Y (TTM)-30.07%
EPS 3Y-27.78%
EPS 5Y-11.91%
EPS Q2Q%-28.95%
Revenue 1Y (TTM)-11.42%
Revenue growth 3Y-24.18%
Revenue growth 5Y-0.87%
Sales Q2Q%-15.09%
3.2 Future
ADEA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.15% yearly.
Based on estimates for the next years, ADEA will show a small growth in Revenue. The Revenue will grow by 3.67% on average per year.
EPS Next Y0.2%
EPS Next 2Y3.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.84%
Revenue Next 2Y3.67%
Revenue Next 3YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ADEA is valuated reasonably with a Price/Earnings ratio of 11.18.
Based on the Price/Earnings ratio, ADEA is valued cheaply inside the industry as 93.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.38, ADEA is valued rather cheaply.
A Price/Forward Earnings ratio of 8.09 indicates a reasonable valuation of ADEA.
Based on the Price/Forward Earnings ratio, ADEA is valued cheaper than 95.34% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ADEA to the average of the S&P500 Index (23.98), we can say ADEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 8.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADEA is valued cheaper than 94.98% of the companies in the same industry.
ADEA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADEA is cheaper than 96.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.51 | ||
| EV/EBITDA | 8.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ADEA does not grow enough to justify the current Price/Earnings ratio.
ADEA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)55.29
PEG (5Y)N/A
EPS Next 2Y3.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ADEA has a Yearly Dividend Yield of 1.74%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 11.46, ADEA pays a better dividend. On top of this ADEA pays more dividend than 95.34% of the companies listed in the same industry.
ADEA's Dividend Yield is slightly below the S&P500 average, which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
The dividend of ADEA decreases each year by -24.23%.
ADEA has been paying a dividend for at least 10 years, so it has a reliable track record.
ADEA has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-24.23%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
ADEA pays out 46.76% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP46.76%
EPS Next 2Y3.15%
EPS Next 3YN/A
ADEIA INC
NASDAQ:ADEA (11/11/2024, 8:19:04 PM)
After market: 11.96 0 (0%)11.96
+0.44 (+3.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 8.09 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)55.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 12.86% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.85% | ||
| PM (TTM) | 12.86% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3 | ||
| Quick Ratio | 3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-30.07%
EPS 3Y-27.78%
EPS 5Y
EPS Q2Q%
EPS Next Y0.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.42%
Revenue growth 3Y-24.18%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y