18.54 USD
+0.59 (+3.29%)
18.54 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ADEA. ADEA was compared to 276 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 has a correct valuation and a medium growth rate.
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
Looking at the Return On Assets, with a value of 6.87%, ADEA is in the better half of the industry, outperforming 76.09% of the companies in the same industry.
ADEA has a Return On Equity of 17.74%. This is amongst the best in the industry. ADEA outperforms 85.87% of its industry peers.
ADEA has a Return On Invested Capital of 12.02%. This is amongst the best in the industry. ADEA outperforms 87.68% 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 10.78%.
The last Return On Invested Capital (12.02%) for ADEA is above the 3 year average (11.98%), which is a sign of increasing profitability.
| 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 Profit Margin of 19.32%. This is amongst the best in the industry. ADEA outperforms 81.88% of its industry peers.
With an excellent Operating Margin value of 38.37%, ADEA belongs to the best of the industry, outperforming 96.01% of the companies in the same industry.
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
ADEA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ADEA has more shares outstanding
The number of shares outstanding for ADEA has been increased compared to 5 years ago.
The debt/assets ratio for ADEA has been reduced compared to a year ago.
2.2 Solvency
ADEA has an Altman-Z score of 2.93. 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 2.93 is in line compared to the rest of the industry. ADEA outperforms 59.78% of its industry peers.
The Debt to FCF ratio of ADEA is 2.36, which is a good value as it means it would take ADEA, 2.36 years of fcf income to pay off all of its debts.
ADEA has a Debt to FCF ratio of 2.36. This is in the better half of the industry: ADEA outperforms 66.30% 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 worse Debt to Equity ratio (1.01) than 76.45% 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 | 1.01 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.05
WACC11.4%
2.3 Liquidity
ADEA has a Current Ratio of 3.72. This indicates that ADEA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.72, ADEA belongs to the top of the industry, outperforming 80.43% of the companies in the same industry.
ADEA has a Quick Ratio of 3.72. This indicates that ADEA is financially healthy and has no problem in meeting its short term obligations.
ADEA has a Quick ratio of 3.72. This is amongst the best in the industry. ADEA outperforms 80.43% 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.
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 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
ADEA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.56% yearly.
Based on estimates for the next years, ADEA will show a small growth in Revenue. The Revenue will grow by 5.99% on average per year.
EPS Next Y-6.41%
EPS Next 2Y5.2%
EPS Next 3Y6.56%
EPS Next 5YN/A
Revenue Next Year-1.44%
Revenue Next 2Y4.18%
Revenue Next 3Y5.99%
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 14.71, which indicates a correct valuation of ADEA.
Based on the Price/Earnings ratio, ADEA is valued cheaper than 82.61% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, ADEA is valued a bit cheaper.
ADEA is valuated correctly with a Price/Forward Earnings ratio of 13.19.
ADEA's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADEA is cheaper than 83.70% of the companies in the same industry.
ADEA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 13.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADEA is valued cheaper than 86.23% of the companies in the same industry.
91.67% 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 | 10.93 | ||
| EV/EBITDA | 11.24 |
4.3 Compensation for Growth
The decent profitability rating of ADEA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.2%
EPS Next 3Y6.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.11%, ADEA has a reasonable but not impressive dividend return.
ADEA's Dividend Yield is rather good when compared to the industry average which is at 0.52. ADEA pays more dividend than 92.75% of the companies in the same industry.
With a Dividend Yield of 1.11, ADEA pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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
29.69% of the earnings are spent on dividend by ADEA. This is a low number and sustainable payout ratio.
DP29.69%
EPS Next 2Y5.2%
EPS Next 3Y6.56%
18.54
+0.59 (+3.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.63%
Inst Owner Change0%
Ins Owners1.58%
Ins Owner Change-1.92%
Market Cap2.03B
Revenue(TTM)379.91M
Net Income(TTM)73.39M
Analysts82
Price Target20.15 (8.68%)
Short Float %3.6%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend0.2
Dividend Growth(5Y)-24.17%
DP29.69%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
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)48.35%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-17.73%
Revenue NQ rev (1m)29.76%
Revenue NQ rev (3m)5.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-9.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 13.19 | ||
| P/S | 5.34 | ||
| P/FCF | 10.93 | ||
| P/OCF | 9.88 | ||
| P/B | 4.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.24 |
EPS(TTM)1.26
EY6.8%
EPS(NY)1.41
Fwd EY7.58%
FCF(TTM)1.7
FCFY9.15%
OCF(TTM)1.88
OCFY10.12%
SpS3.47
BVpS3.78
TBVpS-1.5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number10.35
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 | 2.93 |
F-Score9
WACC11.4%
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 Y-6.41%
EPS Next 2Y5.2%
EPS Next 3Y6.56%
EPS Next 5YN/A
Revenue 1Y (TTM)10.53%
Revenue growth 3Y-24.61%
Revenue growth 5Y6.07%
Sales Q2Q%1.44%
Revenue Next Year-1.44%
Revenue Next 2Y4.18%
Revenue Next 3Y5.99%
Revenue Next 5YN/A
EBIT growth 1Y36.98%
EBIT growth 3Y77.36%
EBIT growth 5YN/A
EBIT Next Year3.49%
EBIT Next 3Y5.42%
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 for ADEA stock?
ChartMill assigns a valuation rating of 6 / 10 to ADEIA INC (ADEA). This can be considered as Fairly Valued.
What is the profitability of ADEA stock?
ADEIA INC (ADEA) has a profitability rating of 7 / 10.
What is the earnings growth outlook for ADEIA INC?
The Earnings per Share (EPS) of ADEIA INC (ADEA) is expected to decline by -6.41% in the next year.
How sustainable is the dividend of ADEIA INC (ADEA) stock?
The dividend rating of ADEIA INC (ADEA) is 5 / 10 and the dividend payout ratio is 29.69%.