12.77 USD
-0.23 (-1.77%)
12.77 USD
0 (0%)
Taking everything into account, ADEA scores 6 out of 10 in our fundamental rating. ADEA was compared to 281 industry peers in the Software industry. While ADEA has a great profitability rating, there are some minor concerns on its financial health. ADEA may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make ADEA a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year ADEA was profitable.
In the past year ADEA had a positive cash flow from operations.
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 (6.87%) is better than 76.79% of its industry peers.
Looking at the Return On Equity, with a value of 17.74%, ADEA belongs to the top of the industry, outperforming 86.43% of the companies in the same industry.
ADEA's Return On Invested Capital of 12.02% is amongst the best of the industry. ADEA outperforms 87.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ADEA is in line with the industry average of 10.73%.
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
With an excellent Profit Margin value of 19.32%, ADEA belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
ADEA has a Operating Margin of 38.37%. This is amongst the best in the industry. ADEA outperforms 96.07% of its industry peers.
ADEA's Operating Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ADEA is creating some value.
The number of shares outstanding for ADEA has been increased compared to 1 year ago.
The number of shares outstanding for ADEA has been increased compared to 5 years ago.
Compared to 1 year ago, ADEA has an improved debt to assets ratio.
2.2 Solvency
ADEA has an Altman-Z score of 2.37. 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.
The Altman-Z score of ADEA (2.37) is comparable to the rest of the industry.
ADEA has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as ADEA would need 2.36 years to pay back of all of its debts.
ADEA's Debt to FCF ratio of 2.36 is fine compared to the rest of the industry. ADEA outperforms 66.43% 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.
The Debt to Equity ratio of ADEA (1.01) is worse than 75.71% 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 | 2.37 |
ROIC/WACC1.05
WACC11.4%
2.3 Liquidity
A Current Ratio of 3.72 indicates that ADEA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.72, ADEA belongs to the top of the industry, outperforming 81.07% of the companies in the same industry.
A Quick Ratio of 3.72 indicates that ADEA has no problem at all paying its short term obligations.
The Quick ratio of ADEA (3.72) is better than 81.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.72 | ||
| Quick Ratio | 3.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.76% over the past year.
ADEA shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.88% yearly.
The Revenue has grown by 10.53% in the past year. This is quite good.
ADEA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.07% yearly.
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 10.13, which indicates a very decent valuation of ADEA.
Based on the Price/Earnings ratio, ADEA is valued cheaper than 87.86% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.38, ADEA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.09, the valuation of ADEA can be described as reasonable.
Based on the Price/Forward Earnings ratio, ADEA is valued cheaper than 89.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ADEA to the average of the S&P500 Index (23.83), we can say ADEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 9.09 |
4.2 Price Multiples
91.79% 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 cheaper than 95.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.53 | ||
| EV/EBITDA | 8.27 |
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
ADEA has a Yearly Dividend Yield of 1.54%. Purely for dividend investing, there may be better candidates out there.
The stock price of ADEA dropped by -23.26% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ADEA's Dividend Yield is rather good when compared to the industry average which is at 1.94. ADEA pays more dividend than 93.93% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, ADEA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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%
12.77
-0.23 (-1.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.61%
Inst Owner Change-1.38%
Ins Owners1.58%
Ins Owner Change-1.92%
Market Cap1.40B
Revenue(TTM)379.91M
Net Income(TTM)73.39M
Analysts82
Price Target20.15 (57.79%)
Short Float %3.37%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend0.2
Dividend Growth(5Y)-24.17%
DP29.69%
Div Incr Years0
Div Non Decr Years3
Ex-Date
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)-23.2%
EPS NQ rev (3m)-32.07%
EPS NY rev (1m)-17.73%
EPS NY rev (3m)-17.73%
Revenue NQ rev (1m)-6.44%
Revenue NQ rev (3m)-18.95%
Revenue NY rev (1m)-9.39%
Revenue NY rev (3m)-9.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 9.09 | ||
| P/S | 3.68 | ||
| P/FCF | 7.53 | ||
| P/OCF | 6.8 | ||
| P/B | 3.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.27 |
EPS(TTM)1.26
EY9.87%
EPS(NY)1.41
Fwd EY11.01%
FCF(TTM)1.7
FCFY13.28%
OCF(TTM)1.88
OCFY14.7%
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 | 2.37 |
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 Year-8.88%
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 of ADEIA INC (ADEA) stock?
ChartMill assigns a valuation rating of 7 / 10 to ADEIA INC (ADEA). This can be considered as Undervalued.
What is the profitability of ADEA stock?
ADEIA INC (ADEA) has a profitability rating of 7 / 10.
Can you provide the financial health for ADEA stock?
The financial health rating of ADEIA INC (ADEA) is 6 / 10.
Can you provide the expected EPS growth for ADEA stock?
The Earnings per Share (EPS) of ADEIA INC (ADEA) is expected to decline by -6.41% in the next year.