ADEIA INC (ADEA) Stock Fundamental Analysis
NASDAQ:ADEA - US98390M1036 - Common Stock
15.43 USD
+0.02 (+0.13%)
15.43 USD
0 (0%)
ADEA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. Both the profitability and the financial health of ADEA get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on ADEA. 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.
In the past 5 years ADEA always reported a positive cash flow from operatings.
1.2 Ratios
ADEA has a Return On Assets of 7.75%. This is amongst the best in the industry. ADEA outperforms 80.71% of its industry peers.
ADEA has a Return On Equity of 20.82%. This is amongst the best in the industry. ADEA outperforms 86.79% of its industry peers.
With an excellent Return On Invested Capital value of 11.87%, ADEA belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ADEA is in line with the industry average of 12.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.75% | ||
| ROE | 20.82% | ||
| ROIC | 11.87% |
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
Looking at the Profit Margin, with a value of 22.15%, ADEA belongs to the top of the industry, outperforming 87.14% of the companies in the same industry.
ADEA's Operating Margin of 38.12% is amongst the best of the industry. ADEA outperforms 95.00% of its industry peers.
In the last couple of years the Operating Margin of ADEA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.12% | ||
| PM (TTM) | 22.15% | ||
| 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.
The debt/assets ratio for ADEA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.50 indicates that ADEA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ADEA (2.50) is comparable to the rest of the industry.
The Debt to FCF ratio of ADEA is 2.44, which is a good value as it means it would take ADEA, 2.44 years of fcf income to pay off all of its debts.
ADEA has a Debt to FCF ratio of 2.44. This is in the better half of the industry: ADEA outperforms 65.71% of its industry peers.
ADEA has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.06, ADEA is doing worse than 75.00% of the companies in the same industry.
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 | 1.06 | ||
| Debt/FCF | 2.44 | ||
| Altman-Z | 2.5 |
ROIC/WACC1.02
WACC11.62%
2.3 Liquidity
A Current Ratio of 3.09 indicates that ADEA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.09, ADEA is in the better half of the industry, outperforming 77.86% of the companies in the same industry.
A Quick Ratio of 3.09 indicates that ADEA has no problem at all paying its short term obligations.
The Quick ratio of ADEA (3.09) is better than 78.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.09 | ||
| Quick Ratio | 3.09 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.93% over the past year.
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 5.47% in the last year.
ADEA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.07% yearly.
EPS 1Y (TTM)5.93%
EPS 3Y-14.47%
EPS 5Y-16.88%
EPS Q2Q%-10.71%
Revenue 1Y (TTM)5.47%
Revenue growth 3Y-24.61%
Revenue growth 5Y6.07%
Sales Q2Q%-1.85%
3.2 Future
ADEA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.02% yearly.
The Revenue is expected to grow by 6.76% on average over the next years.
EPS Next Y13.75%
EPS Next 2Y9.03%
EPS Next 3Y12.02%
EPS Next 5YN/A
Revenue Next Year8.77%
Revenue Next 2Y6.84%
Revenue Next 3Y6.76%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
ADEA is valuated correctly with a Price/Earnings ratio of 12.34.
86.43% of the companies in the same industry are more expensive than ADEA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ADEA to the average of the S&P500 Index (27.06), we can say ADEA is valued rather cheaply.
A Price/Forward Earnings ratio of 10.22 indicates a reasonable valuation of ADEA.
Based on the Price/Forward Earnings ratio, ADEA is valued cheaper than 90.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.69. ADEA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.34 | ||
| Fwd PE | 10.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADEA indicates a rather cheap valuation: ADEA is cheaper than 90.36% of the companies listed 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 95.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.19 | ||
| EV/EBITDA | 9.82 |
4.3 Compensation for Growth
ADEA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ADEA has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ADEA's earnings are expected to grow with 12.02% in the coming years.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y9.03%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
ADEA has a Yearly Dividend Yield of 1.29%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 59.44, ADEA pays a better dividend. On top of this ADEA pays more dividend than 93.57% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, ADEA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
The dividend of ADEA decreases each year by -24.17%.
ADEA has been paying a dividend for at least 10 years, so it has 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 25.96% of its income as dividend. This is a sustainable payout ratio.
DP25.96%
EPS Next 2Y9.03%
EPS Next 3Y12.02%
15.43
+0.02 (+0.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.97%
Inst Owner Change0.47%
Ins Owners1.64%
Ins Owner Change23.73%
Market Cap1.69B
Analysts82
Price Target20.15 (30.59%)
Short Float %2.51%
Short Ratio4.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend0.2
Dividend Growth(5Y)-24.17%
DP25.96%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.49%
Min EPS beat(2)1.28%
Max EPS beat(2)1.7%
EPS beat(4)3
Avg EPS beat(4)-5.22%
Min EPS beat(4)-31.95%
Max EPS beat(4)8.08%
EPS beat(8)7
Avg EPS beat(8)8.43%
EPS beat(12)10
Avg EPS beat(12)11.84%
EPS beat(16)13
Avg EPS beat(16)15.9%
Revenue beat(2)0
Avg Revenue beat(2)-4.19%
Min Revenue beat(2)-5%
Max Revenue beat(2)-3.39%
Revenue beat(4)1
Avg Revenue beat(4)-7.53%
Min Revenue beat(4)-24.04%
Max Revenue beat(4)2.29%
Revenue beat(8)3
Avg Revenue beat(8)-2.91%
Revenue beat(12)4
Avg Revenue beat(12)-2.05%
Revenue beat(16)4
Avg Revenue beat(16)-7.93%
PT rev (1m)1.28%
PT rev (3m)13.94%
EPS NQ rev (1m)8.21%
EPS NQ rev (3m)5.69%
EPS NY rev (1m)3.5%
EPS NY rev (3m)3.28%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-2.82%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.34 | ||
| Fwd PE | 10.22 | ||
| P/S | 4.46 | ||
| P/FCF | 9.19 | ||
| P/OCF | 8.35 | ||
| P/B | 4.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.82 |
EPS(TTM)1.25
EY8.1%
EPS(NY)1.51
Fwd EY9.78%
FCF(TTM)1.68
FCFY10.88%
OCF(TTM)1.85
OCFY11.97%
SpS3.46
BVpS3.68
TBVpS-1.72
PEG (NY)0.9
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.75% | ||
| ROE | 20.82% | ||
| ROCE | 14.49% | ||
| ROIC | 11.87% | ||
| ROICexc | 13.44% | ||
| ROICexgc | 40.95% | ||
| OM | 38.12% | ||
| PM (TTM) | 22.15% | ||
| GM | N/A | ||
| FCFM | 48.5% |
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 | 1.06 | ||
| Debt/FCF | 2.44 | ||
| Debt/EBITDA | 2.12 | ||
| Cap/Depr | 31.78% | ||
| Cap/Sales | 4.85% | ||
| Interest Coverage | 3.61 | ||
| Cash Conversion | 99.93% | ||
| Profit Quality | 218.95% | ||
| Current Ratio | 3.09 | ||
| Quick Ratio | 3.09 | ||
| Altman-Z | 2.5 |
F-Score9
WACC11.62%
ROIC/WACC1.02
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)5.93%
EPS 3Y-14.47%
EPS 5Y-16.88%
EPS Q2Q%-10.71%
EPS Next Y13.75%
EPS Next 2Y9.03%
EPS Next 3Y12.02%
EPS Next 5YN/A
Revenue 1Y (TTM)5.47%
Revenue growth 3Y-24.61%
Revenue growth 5Y6.07%
Sales Q2Q%-1.85%
Revenue Next Year8.77%
Revenue Next 2Y6.84%
Revenue Next 3Y6.76%
Revenue Next 5YN/A
EBIT growth 1Y22.38%
EBIT growth 3Y77.36%
EBIT growth 5YN/A
EBIT Next Year2.18%
EBIT Next 3Y5.85%
EBIT Next 5YN/A
FCF growth 1Y0.52%
FCF growth 3Y-4.84%
FCF growth 5Y4.04%
OCF growth 1Y7.4%
OCF growth 3Y-3.28%
OCF growth 5Y4.65%