ADEIA INC (ADEA)
US98390M1036 - Common Stock
We assign a fundamental rating of 5 out of 10 to ADEA. 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. These ratings would make ADEA suitable 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.
Each year in the past 5 years ADEA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ADEA (4.32%) is better than 74.55% of its industry peers.
ADEA's Return On Equity of 12.86% is amongst the best of the industry. ADEA outperforms 83.87% of its industry peers.
ADEA has a Return On Invested Capital of 9.98%. This is amongst the best in the industry. ADEA outperforms 87.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ADEA is below the industry average of 11.54%.
The last Return On Invested Capital (9.98%) for ADEA is above the 3 year average (8.74%), which is a sign of increasing profitability.
| 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 Profit Margin of 12.86%. This is amongst the best in the industry. ADEA outperforms 81.72% of its industry peers.
In the last couple of years the Profit Margin of ADEA has grown nicely.
Looking at the Operating Margin, with a value of 32.85%, ADEA belongs to the top of the industry, outperforming 96.77% 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 | 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.
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
An Altman-Z score of 1.92 indicates that ADEA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ADEA (1.92) is comparable to the rest of the industry.
ADEA has a debt to FCF ratio of 3.91. This is a good value and a sign of high solvency as ADEA would need 3.91 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.91, ADEA is in the better half of the industry, outperforming 60.57% of the companies in the same industry.
A Debt/Equity ratio of 1.42 is on the high side and indicates that ADEA has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.42, ADEA is doing worse than 82.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.8
WACC12.5%
2.3 Liquidity
A Current Ratio of 3.00 indicates that ADEA has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.00, ADEA is doing good in 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
The Revenue for ADEA has decreased by -11.42% in the past year. This is quite bad
The Revenue has been decreasing by -0.87% on average over the past years.
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
The Earnings Per Share is expected to grow by 3.15% on average over the next years.
The Revenue is expected to grow by 3.67% on average over the next years.
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
The Price/Earnings ratio is 11.31, which indicates a very decent valuation of ADEA.
Based on the Price/Earnings ratio, ADEA is valued cheaper than 93.55% 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 28.96.
A Price/Forward Earnings ratio of 8.18 indicates a reasonable valuation of ADEA.
Based on the Price/Forward Earnings ratio, ADEA is valued cheaply inside the industry as 95.70% of the companies are valued more expensively.
ADEA is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 8.18 |
4.2 Price Multiples
94.62% of the companies in the same industry are more expensive than ADEA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ADEA is valued cheaply inside the industry as 95.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.62 | ||
| EV/EBITDA | 8.27 |
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.
The decent profitability rating of ADEA may justify a higher PE ratio.
PEG (NY)55.94
PEG (5Y)N/A
EPS Next 2Y3.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ADEA has a Yearly Dividend Yield of 1.71%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 11.80, 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 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
5.2 History
The dividend of ADEA decreases each year by -24.23%.
ADEA has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of ADEA decreased 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 (11/21/2024, 8:10:46 PM)
After market: 12.1 0 (0%)12.1
+0.58 (+5.03%)
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 Cap1.32B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 8.18 | ||
| 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)55.94
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