12.35 USD
+0.18 (+1.48%)
12.35 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ADEA. ADEA was compared to 280 industry peers in the Software industry. While ADEA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ADEA. With these ratings, ADEA could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
ADEA had positive earnings in the past year.
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 76.43% of its industry peers.
Looking at the Return On Equity, with a value of 17.74%, ADEA belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.02%, ADEA belongs to the best of the industry, outperforming 87.14% 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 11.97%.
The 3 year average ROIC (11.98%) for ADEA is below the current ROIC(12.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 17.74% | ||
| ROIC | 12.02% |
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 better Profit Margin (19.32%) than 82.86% of its industry peers.
ADEA has a better Operating Margin (38.37%) than 96.07% of its industry peers.
In the last couple of years the Operating Margin of ADEA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.37% | ||
| 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.
The number of shares outstanding for ADEA has been increased compared to 1 year ago.
The number of shares outstanding for ADEA has been increased compared to 5 years ago.
ADEA has a better debt/assets ratio than last year.
2.2 Solvency
ADEA has an Altman-Z score of 2.29. 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 2.29 is in line compared to the rest of the industry. ADEA outperforms 54.29% 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 66.79% 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.
ADEA has a worse Debt to Equity ratio (1.01) than 76.07% 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 | 2.29 |
ROIC/WACC1.04
WACC11.55%
2.3 Liquidity
A Current Ratio of 3.72 indicates that ADEA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.72, ADEA belongs to the top of the industry, outperforming 81.43% 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.
Looking at the Quick ratio, with a value of 3.72, ADEA belongs to the top of the industry, outperforming 81.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.72 | ||
| Quick Ratio | 3.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.76% over the past year.
ADEA shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.88% yearly.
ADEA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.53%.
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)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.
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
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ADEA is valuated reasonably with a Price/Earnings ratio of 9.80.
Based on the Price/Earnings ratio, ADEA is valued cheaply inside the industry as 87.86% of the companies are valued more expensively.
ADEA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
With a Price/Forward Earnings ratio of 8.18, the valuation of ADEA can be described as very reasonable.
91.07% of the companies in the same industry are more expensive than ADEA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.79, ADEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 8.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADEA is valued cheaper than 91.79% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ADEA is valued cheaply inside the industry as 95.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.27 | ||
| EV/EBITDA | 7.82 |
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.
A more expensive valuation may be justified as ADEA's earnings are expected to grow with 12.02% in the coming years.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y9.03%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
ADEA has a Yearly Dividend Yield of 1.70%.
ADEA's Dividend Yield is rather good when compared to the industry average which is at 51.73. ADEA pays more dividend than 93.93% of the companies in the same industry.
ADEA's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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
ADEA pays out 29.69% of its income as dividend. This is a sustainable payout ratio.
DP29.69%
EPS Next 2Y9.03%
EPS Next 3Y12.02%
12.35
+0.18 (+1.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.96%
Inst Owner Change-1.38%
Ins Owners1.6%
Ins Owner Change9.86%
Market Cap1.35B
Revenue(TTM)379.91M
Net Income(TTM)73.39M
Analysts82
Price Target20.15 (63.16%)
Short Float %2.7%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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)0%
EPS NQ rev (1m)-32.07%
EPS NQ rev (3m)-32.07%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-18.95%
Revenue NQ rev (3m)-18.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 8.18 | ||
| P/S | 3.56 | ||
| P/FCF | 7.27 | ||
| P/OCF | 6.57 | ||
| P/B | 3.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.82 |
EPS(TTM)1.26
EY10.2%
EPS(NY)1.51
Fwd EY12.22%
FCF(TTM)1.7
FCFY13.75%
OCF(TTM)1.88
OCFY15.22%
SpS3.47
BVpS3.78
TBVpS-1.5
PEG (NY)0.71
PEG (5Y)N/A
Graham Number10.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 17.74% | ||
| ROCE | 14.67% | ||
| ROIC | 12.02% | ||
| ROICexc | 13.6% | ||
| ROICexgc | 39.74% | ||
| OM | 38.37% | ||
| 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 | 2.05 | ||
| Cap/Depr | 34.04% | ||
| Cap/Sales | 5.23% | ||
| Interest Coverage | 4.02 | ||
| Cash Conversion | 100.7% | ||
| Profit Quality | 253% | ||
| Current Ratio | 3.72 | ||
| Quick Ratio | 3.72 | ||
| Altman-Z | 2.29 |
F-Score9
WACC11.55%
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 1Y36.98%
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.