ADEIA INC (ADEA) Stock Fundamental Analysis
USA - NASDAQ:ADEA - US98390M1036 - Common Stock
15.57 USD
+0.07 (+0.45%)
15.57 USD
0 (0%)
Taking everything into account, ADEA scores 6 out of 10 in our fundamental rating. ADEA was compared to 280 industry peers in the Software industry. ADEA has an average financial health and profitability rating. 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
ADEA had positive earnings in the past year.
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 (7.75%) is better than 81.43% of its industry peers.
ADEA has a better Return On Equity (20.82%) than 87.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.87%, ADEA belongs to the top of the industry, outperforming 89.29% 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 11.85%.
| 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
ADEA has a Profit Margin of 22.15%. This is amongst the best in the industry. ADEA outperforms 87.50% of its industry peers.
ADEA has a Operating Margin of 38.12%. This is amongst the best in the industry. ADEA outperforms 95.00% of its industry peers.
In the last couple of years the Operating Margin of ADEA has grown nicely.
| 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.
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
An Altman-Z score of 2.51 indicates that ADEA is not a great score, but indicates only limited risk for bankruptcy at the moment.
ADEA's Altman-Z score of 2.51 is in line compared to the rest of the industry. ADEA outperforms 53.93% of its industry peers.
The Debt to FCF ratio of ADEA is 2.44, which is a good value as it means it would take ADEA, 2.44 years of fcf income to pay off all of its debts.
ADEA has a better Debt to FCF ratio (2.44) than 65.36% 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 75.00% 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 | 2.51 |
ROIC/WACC1.04
WACC11.44%
2.3 Liquidity
A Current Ratio of 3.09 indicates that ADEA has no problem at all paying its short term obligations.
ADEA has a better Current ratio (3.09) than 78.57% of its industry peers.
A Quick Ratio of 3.09 indicates that ADEA has no problem at all paying its short term obligations.
With a decent Quick ratio value of 3.09, ADEA is doing good in the industry, outperforming 78.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.09 | ||
| Quick Ratio | 3.09 |
3. Growth
3.1 Past
ADEA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.93%.
The earnings per share for ADEA have been decreasing by -16.88% on average. This is quite bad
ADEA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.47%.
ADEA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.07% yearly.
EPS 1Y (TTM)5.93%
EPS 3Y-14.47%
EPS 5Y-16.88%
EPS Q2Q%-10.71%
Revenue 1Y (TTM)5.47%
Revenue growth 3Y-24.61%
Revenue growth 5Y6.07%
Sales Q2Q%-1.85%
3.2 Future
The Earnings Per Share is expected to grow by 12.02% on average over the next years. This is quite good.
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 12.46, which indicates a correct valuation of ADEA.
Based on the Price/Earnings ratio, ADEA is valued cheaper than 87.14% 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 27.20.
The Price/Forward Earnings ratio is 10.31, which indicates a very decent valuation of ADEA.
91.07% of the companies in the same industry are more expensive than ADEA, based on the Price/Forward Earnings ratio.
ADEA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.46 | ||
| Fwd PE | 10.31 |
4.2 Price Multiples
ADEA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ADEA is cheaper than 91.07% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADEA indicates a rather cheap valuation: ADEA is cheaper than 95.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.27 | ||
| EV/EBITDA | 9.87 |
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.
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)0.91
PEG (5Y)N/A
EPS Next 2Y9.03%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
ADEA has a Yearly Dividend Yield of 1.28%.
ADEA's Dividend Yield is rather good when compared to the industry average which is at 40.28. ADEA pays more dividend than 93.93% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ADEA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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 25.96% of its income as dividend. This is a sustainable payout ratio.
DP25.96%
EPS Next 2Y9.03%
EPS Next 3Y12.02%
15.57
+0.07 (+0.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.97%
Inst Owner Change0.47%
Ins Owners1.64%
Ins Owner Change15.48%
Market Cap1.70B
Analysts82
Price Target20.15 (29.42%)
Short Float %2.77%
Short Ratio5.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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)1.28%
PT rev (3m)13.94%
EPS NQ rev (1m)3.53%
EPS NQ rev (3m)8.03%
EPS NY rev (1m)3.5%
EPS NY rev (3m)3.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.46 | ||
| Fwd PE | 10.31 | ||
| P/S | 4.5 | ||
| P/FCF | 9.27 | ||
| P/OCF | 8.43 | ||
| P/B | 4.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.87 |
EPS(TTM)1.25
EY8.03%
EPS(NY)1.51
Fwd EY9.7%
FCF(TTM)1.68
FCFY10.78%
OCF(TTM)1.85
OCFY11.86%
SpS3.46
BVpS3.68
TBVpS-1.72
PEG (NY)0.91
PEG (5Y)N/A
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%
ROICexcg growth 3Y86.73%
ROICexcg 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 | 2.51 |
F-Score9
WACC11.44%
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)5.93%
EPS 3Y-14.47%
EPS 5Y-16.88%
EPS Q2Q%-10.71%
EPS Next Y13.75%
EPS Next 2Y9.03%
EPS Next 3Y12.02%
EPS Next 5YN/A
Revenue 1Y (TTM)5.47%
Revenue growth 3Y-24.61%
Revenue growth 5Y6.07%
Sales Q2Q%-1.85%
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 Year2.18%
EBIT Next 3Y5.85%
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%