ADEIA INC (ADEA) Stock Fundamental Analysis
NASDAQ:ADEA - Nasdaq - US98390M1036 - Common Stock - Currency: USD
Overall ADEA gets a fundamental rating of 6 out of 10. We evaluated ADEA against 282 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. ADEA is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make ADEA a good candidate 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.
Each year in the past 5 years ADEA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ADEA (6.95%) is better than 78.72% of its industry peers.
ADEA's Return On Equity of 19.40% is amongst the best of the industry. ADEA outperforms 86.88% of its industry peers.
ADEA has a Return On Invested Capital of 12.21%. This is amongst the best in the industry. ADEA outperforms 89.36% 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 12.26%.
The 3 year average ROIC (11.98%) for ADEA is below the current ROIC(12.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.95% | ||
| ROE | 19.4% | ||
| ROIC | 12.21% |
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's Profit Margin of 19.86% is amongst the best of the industry. ADEA outperforms 87.59% of its industry peers.
ADEA has a better Operating Margin (39.09%) than 96.81% of its industry peers.
ADEA's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.09% | ||
| PM (TTM) | 19.86% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ADEA is still 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
ADEA has an Altman-Z score of 2.33. 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.
With a Altman-Z score value of 2.33, ADEA perfoms like the industry average, outperforming 52.48% of the companies in the same industry.
The Debt to FCF ratio of ADEA is 2.50, which is a good value as it means it would take ADEA, 2.50 years of fcf income to pay off all of its debts.
ADEA has a Debt to FCF ratio of 2.50. This is in the better half of the industry: ADEA outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that ADEA has dependencies on debt financing.
ADEA's Debt to Equity ratio of 1.13 is on the low side compared to the rest of the industry. ADEA is outperformed by 74.82% 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 | 1.13 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 2.33 |
ROIC/WACC1.35
WACC9.05%
2.3 Liquidity
A Current Ratio of 2.94 indicates that ADEA has no problem at all paying its short term obligations.
ADEA has a better Current ratio (2.94) than 76.24% of its industry peers.
ADEA has a Quick Ratio of 2.94. This indicates that ADEA is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.94, ADEA is doing good in the industry, outperforming 77.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.94 | ||
| Quick Ratio | 2.94 |
3. Growth
3.1 Past
ADEA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.34%, which is quite good.
The earnings per share for ADEA have been decreasing by -16.88% on average. This is quite bad
Looking at the last year, ADEA shows a small growth in Revenue. The Revenue has grown by 7.16% in the last year.
The Revenue has been growing slightly by 6.07% on average over the past years.
EPS 1Y (TTM)10.34%
EPS 3Y-14.47%
EPS 5Y-16.88%
EPS Q2Q%4%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y-24.61%
Revenue growth 5Y6.07%
Sales Q2Q%5.11%
3.2 Future
The Earnings Per Share is expected to grow by 8.10% 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 7.02% yearly.
EPS Next Y10.14%
EPS Next 2Y8.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.95%
Revenue Next 2Y7.02%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.08, the valuation of ADEA can be described as very reasonable.
91.13% of the companies in the same industry are more expensive than ADEA, based on the Price/Earnings ratio.
ADEA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
ADEA is valuated reasonably with a Price/Forward Earnings ratio of 9.55.
92.55% of the companies in the same industry are more expensive than ADEA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ADEA to the average of the S&P500 Index (21.70), we can say ADEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 9.55 |
4.2 Price Multiples
93.26% of the companies in the same industry are more expensive than ADEA, based on the Enterprise Value to EBITDA ratio.
ADEA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADEA is cheaper than 96.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.37 | ||
| EV/EBITDA | 8.71 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ADEA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.09
PEG (5Y)N/A
EPS Next 2Y8.1%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ADEA has a Yearly Dividend Yield of 1.40%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 16.20, ADEA pays a better dividend. On top of this ADEA pays more dividend than 94.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, ADEA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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 28.82% of its income as dividend. This is a sustainable payout ratio.
DP28.82%
EPS Next 2Y8.1%
EPS Next 3YN/A
14.18
+0.04 (+0.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.3%
Inst Owner Change-3.45%
Ins Owners1.64%
Ins Owner Change24.48%
Market Cap1.54B
Analysts82.22
Price Target17.68 (24.68%)
Short Float %3.07%
Short Ratio6.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Yearly Dividend0.2
Dividend Growth(5Y)-24.17%
DP28.82%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.68%
Min EPS beat(2)1.28%
Max EPS beat(2)8.08%
EPS beat(4)3
Avg EPS beat(4)-0.81%
Min EPS beat(4)-31.95%
Max EPS beat(4)19.35%
EPS beat(8)7
Avg EPS beat(8)8.26%
EPS beat(12)10
Avg EPS beat(12)13.97%
EPS beat(16)13
Avg EPS beat(16)18.54%
Revenue beat(2)1
Avg Revenue beat(2)-0.55%
Min Revenue beat(2)-3.39%
Max Revenue beat(2)2.29%
Revenue beat(4)2
Avg Revenue beat(4)-5.87%
Min Revenue beat(4)-24.04%
Max Revenue beat(4)2.29%
Revenue beat(8)3
Avg Revenue beat(8)-3.33%
Revenue beat(12)4
Avg Revenue beat(12)-6.04%
Revenue beat(16)5
Avg Revenue beat(16)-7.44%
PT rev (1m)0%
PT rev (3m)-5.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-35.01%
EPS NY rev (1m)0%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-16.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 9.55 | ||
| P/S | 4.05 | ||
| P/FCF | 8.37 | ||
| P/OCF | 7.6 | ||
| P/B | 3.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.71 |
EPS(TTM)1.28
EY9.03%
EPS(NY)1.48
Fwd EY10.47%
FCF(TTM)1.69
FCFY11.94%
OCF(TTM)1.87
OCFY13.15%
SpS3.5
BVpS3.59
TBVpS-1.99
PEG (NY)1.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.95% | ||
| ROE | 19.4% | ||
| ROCE | 14.9% | ||
| ROIC | 12.21% | ||
| ROICexc | 13.82% | ||
| ROICexgc | 44.2% | ||
| OM | 39.09% | ||
| PM (TTM) | 19.86% | ||
| GM | N/A | ||
| FCFM | 48.32% |
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 | 1.13 | ||
| Debt/FCF | 2.5 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 29.21% | ||
| Cap/Sales | 4.89% | ||
| Interest Coverage | 3.43 | ||
| Cash Conversion | 95.3% | ||
| Profit Quality | 243.28% | ||
| Current Ratio | 2.94 | ||
| Quick Ratio | 2.94 | ||
| Altman-Z | 2.33 |
F-Score9
WACC9.05%
ROIC/WACC1.35
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)10.34%
EPS 3Y-14.47%
EPS 5Y-16.88%
EPS Q2Q%4%
EPS Next Y10.14%
EPS Next 2Y8.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.16%
Revenue growth 3Y-24.61%
Revenue growth 5Y6.07%
Sales Q2Q%5.11%
Revenue Next Year9.95%
Revenue Next 2Y7.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y35.1%
EBIT growth 3Y77.36%
EBIT growth 5YN/A
EBIT Next Year2.96%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-3.94%
FCF growth 3Y-4.84%
FCF growth 5Y4.04%
OCF growth 1Y1.13%
OCF growth 3Y-3.28%
OCF growth 5Y4.65%