ADEIA INC (ADEA)
US98390M1036 - Common Stock
We assign a fundamental rating of 5 out of 10 to ADEA. ADEA was compared to 280 industry peers in the Software industry. While ADEA has a great profitability rating, 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.
In the past year ADEA had a positive cash flow from operations.
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
The Return On Assets of ADEA (3.81%) is better than 72.89% of its industry peers.
With an excellent Return On Equity value of 10.92%, ADEA belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
ADEA has a Return On Invested Capital of 8.86%. This is amongst the best in the industry. ADEA outperforms 84.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ADEA is below the industry average of 12.15%.
The last Return On Invested Capital (8.86%) for ADEA is above the 3 year average (8.74%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 10.92% | ||
| ROIC | 8.86% |
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
The Profit Margin of ADEA (12.01%) is better than 79.85% of its industry peers.
In the last couple of years the Profit Margin of ADEA has grown nicely.
ADEA has a better Operating Margin (30.96%) than 95.60% of its industry peers.
In the last couple of years the Operating Margin of ADEA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.96% | ||
| PM (TTM) | 12.01% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADEA is destroying 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 2.10. 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 has a Altman-Z score (2.10) which is comparable to the rest of the industry.
The Debt to FCF ratio of ADEA is 4.02, which is a neutral value as it means it would take ADEA, 4.02 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.02, ADEA is in line with its industry, outperforming 58.24% of the companies in the same industry.
ADEA has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.32, ADEA is not doing good in the industry: 80.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.74
WACC11.98%
2.3 Liquidity
ADEA has a Current Ratio of 3.42. This indicates that ADEA is financially healthy and has no problem in meeting its short term obligations.
ADEA has a better Current ratio (3.42) than 79.49% of its industry peers.
A Quick Ratio of 3.42 indicates that ADEA has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.42, ADEA is in the better half of the industry, outperforming 79.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.42 | ||
| Quick Ratio | 3.42 |
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 -15.17% in the past year. This is quite bad
Measured over the past years, ADEA shows a decrease in Revenue. The Revenue has been decreasing by -0.87% on average per year.
EPS 1Y (TTM)-30.07%
EPS 3Y-27.78%
EPS 5Y-11.91%
EPS Q2Q%-28.95%
Revenue 1Y (TTM)-15.17%
Revenue growth 3Y-24.18%
Revenue growth 5Y-0.87%
Sales Q2Q%-15.09%
3.2 Future
ADEA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.63% yearly.
The Revenue is expected to grow by 2.25% on average over the next years.
EPS Next Y-8.08%
EPS Next 2Y1.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.81%
Revenue Next 2Y2.25%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.07, the valuation of ADEA can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of ADEA indicates a rather cheap valuation: ADEA is cheaper than 92.31% of the companies listed in the same industry.
ADEA is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.74 indicates a reasonable valuation of ADEA.
94.51% 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 (23.69), we can say ADEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.07 | ||
| Fwd PE | 9.74 |
4.2 Price Multiples
ADEA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ADEA is cheaper than 94.14% 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 94.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.72 | ||
| EV/EBITDA | 10.28 |
4.3 Compensation for Growth
ADEA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.63%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ADEA has a Yearly Dividend Yield of 1.46%.
ADEA's Dividend Yield is rather good when compared to the industry average which is at 13.58. ADEA pays more dividend than 94.14% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.33, ADEA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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.
ADEA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-24.23%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
ADEA pays out 52.41% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP52.41%
EPS Next 2Y1.63%
EPS Next 3YN/A
ADEIA INC
NASDAQ:ADEA (1/3/2025, 8:18:26 PM)
After market: 13.98 0 (0%)13.98
+0.25 (+1.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners99.54%
Inst Owner Change0.4%
Ins Owners1.04%
Ins Owner Change-3.11%
Market Cap1.53B
Analysts82.22
Price Target16.66 (19.17%)
Short Float %3.42%
Short Ratio6.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Dividend Growth(5Y)-24.23%
DP52.41%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.3%
Min EPS beat(2)-31.95%
Max EPS beat(2)19.35%
EPS beat(4)3
Avg EPS beat(4)2.84%
Min EPS beat(4)-31.95%
Max EPS beat(4)19.35%
EPS beat(8)7
Avg EPS beat(8)16.87%
EPS beat(12)9
Avg EPS beat(12)15.73%
EPS beat(16)13
Avg EPS beat(16)20.21%
Revenue beat(2)1
Avg Revenue beat(2)-11.19%
Min Revenue beat(2)-24.04%
Max Revenue beat(2)1.65%
Revenue beat(4)1
Avg Revenue beat(4)-6.66%
Min Revenue beat(4)-24.04%
Max Revenue beat(4)1.65%
Revenue beat(8)3
Avg Revenue beat(8)-1.19%
Revenue beat(12)3
Avg Revenue beat(12)-10.06%
Revenue beat(16)4
Avg Revenue beat(16)-7.58%
PT rev (1m)6.52%
PT rev (3m)8.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.21%
EPS NY rev (1m)2.82%
EPS NY rev (3m)-8.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.92%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)-6.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.07 | ||
| Fwd PE | 9.74 | ||
| P/S | 4.44 | ||
| P/FCF | 11.72 | ||
| P/OCF | 10.57 | ||
| P/B | 4.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.28 |
EPS(TTM)1.07
EY7.65%
EPS(NY)1.44
Fwd EY10.27%
FCF(TTM)1.19
FCFY8.53%
OCF(TTM)1.32
OCFY9.46%
SpS3.15
BVpS3.46
TBVpS-2.13
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 10.92% | ||
| ROCE | 10.52% | ||
| ROIC | 8.86% | ||
| ROICexc | 9.72% | ||
| ROICexgc | 28.78% | ||
| OM | 30.96% | ||
| PM (TTM) | 12.01% | ||
| GM | N/A | ||
| FCFM | 37.93% |
ROA(3y)-6.87%
ROA(5y)-4.23%
ROE(3y)-27.8%
ROE(5y)-16.95%
ROIC(3y)8.74%
ROIC(5y)N/A
ROICexc(3y)9.68%
ROICexc(5y)N/A
ROICexgc(3y)42.63%
ROICexgc(5y)N/A
ROCE(3y)10.37%
ROCE(5y)N/A
ROICexcg growth 3Y1.38%
ROICexcg growth 5Y28.55%
ROICexc growth 3Y20.97%
ROICexc growth 5Y26.52%
OM growth 3Y18.96%
OM growth 5Y24.86%
PM growth 3Y1.73%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 4.02 | ||
| Debt/EBITDA | 2.66 | ||
| Cap/Depr | 17.25% | ||
| Cap/Sales | 4.1% | ||
| Interest Coverage | 2.11 | ||
| Cash Conversion | 76.79% | ||
| Profit Quality | 315.69% | ||
| Current Ratio | 3.42 | ||
| Quick Ratio | 3.42 | ||
| Altman-Z | 2.1 |
F-Score6
WACC11.98%
ROIC/WACC0.74
Cap/Depr(3y)6.97%
Cap/Depr(5y)13.35%
Cap/Sales(3y)2.06%
Cap/Sales(5y)3.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-30.07%
EPS 3Y-27.78%
EPS 5Y-11.91%
EPS Q2Q%-28.95%
EPS Next Y-8.08%
EPS Next 2Y1.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-15.17%
Revenue growth 3Y-24.18%
Revenue growth 5Y-0.87%
Sales Q2Q%-15.09%
Revenue Next Year-3.81%
Revenue Next 2Y2.25%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-31.22%
EBIT growth 3Y-9.81%
EBIT growth 5Y23.78%
EBIT Next Year-12.7%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-32.21%
FCF growth 3Y-26.54%
FCF growth 5Y2.77%
OCF growth 1Y-31.5%
OCF growth 3Y-29.04%
OCF growth 5Y2.49%