ADEIA INC (ADEA) Stock Fundamental Analysis
USA - NASDAQ:ADEA - US98390M1036 - Common Stock
17.01 USD
+0.22 (+1.31%)
17.01 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ADEA. ADEA was compared to 285 industry peers in the Software industry. ADEA has only an average score on both its financial health and profitability. ADEA may be a bit undervalued, certainly considering the very reasonable score on growth This makes ADEA very considerable 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.
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
ADEA has a Return On Assets of 7.75%. This is amongst the best in the industry. ADEA outperforms 81.40% of its industry peers.
ADEA's Return On Equity of 20.82% is amongst the best of the industry. ADEA outperforms 87.02% of its industry peers.
With an excellent Return On Invested Capital value of 11.87%, ADEA belongs to the best of the industry, outperforming 89.12% of the companies in the same industry.
ADEA had an Average Return On Invested Capital over the past 3 years of 11.98%. This is in line with the industry average of 11.90%.
| 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 87.37% of the companies in the same industry.
The Operating Margin of ADEA (38.12%) is better than 95.09% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ADEA is still creating some value.
ADEA has more shares outstanding than it did 1 year ago.
ADEA has more shares outstanding than it did 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 2.64. 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 of 2.64. This is comparable to the rest of the industry: ADEA outperforms 54.04% of its industry peers.
ADEA has a debt to FCF ratio of 2.44. This is a good value and a sign of high solvency as ADEA would need 2.44 years to pay back of all of its debts.
ADEA has a better Debt to FCF ratio (2.44) than 65.96% 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.
ADEA has a Debt to Equity ratio of 1.06. This is in the lower half of the industry: ADEA underperforms 75.09% of its industry peers.
Even though the debt/equity ratio score it not favorable for ADEA, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 2.44 | ||
| Altman-Z | 2.64 |
ROIC/WACC1.04
WACC11.46%
2.3 Liquidity
ADEA has a Current Ratio of 3.09. This indicates that ADEA is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ADEA (3.09) is better than 77.54% of its industry peers.
A Quick Ratio of 3.09 indicates that ADEA has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.09, ADEA is in the better half of the industry, outperforming 78.25% of the companies in the same industry.
| 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
ADEA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.47%.
The Revenue has been growing slightly by 6.07% on average over the past years.
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
The Earnings Per Share is expected to grow by 12.02% on average over the next years. This is quite good.
ADEA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.76% yearly.
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
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.61, the valuation of ADEA can be described as correct.
ADEA's Price/Earnings ratio is rather cheap when compared to the industry. ADEA is cheaper than 86.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of ADEA to the average of the S&P500 Index (27.77), we can say ADEA is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.27, the valuation of ADEA can be described as very reasonable.
88.77% of the companies in the same industry are more expensive than ADEA, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.23. ADEA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 11.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADEA is valued cheaper than 89.82% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ADEA is valued cheaper than 95.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.13 | ||
| EV/EBITDA | 10.57 |
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.
The decent profitability rating of ADEA 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)0.99
PEG (5Y)N/A
EPS Next 2Y9.03%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
ADEA has a Yearly Dividend Yield of 1.20%. Purely for dividend investing, there may be better candidates out there.
ADEA's Dividend Yield is rather good when compared to the industry average which is at 36.72. ADEA pays more dividend than 93.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ADEA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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
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%
17.01
+0.22 (+1.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.96%
Inst Owner Change-0.01%
Ins Owners1.6%
Ins Owner Change15.48%
Market Cap1.86B
Analysts82
Price Target20.15 (18.46%)
Short Float %2.76%
Short Ratio5.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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)0%
PT rev (3m)13.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.21%
EPS NY rev (1m)0%
EPS NY rev (3m)3.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 11.27 | ||
| P/S | 4.91 | ||
| P/FCF | 10.13 | ||
| P/OCF | 9.21 | ||
| P/B | 4.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.57 |
EPS(TTM)1.25
EY7.35%
EPS(NY)1.51
Fwd EY8.87%
FCF(TTM)1.68
FCFY9.87%
OCF(TTM)1.85
OCFY10.86%
SpS3.46
BVpS3.68
TBVpS-1.72
PEG (NY)0.99
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 | 2.64 |
F-Score9
WACC11.46%
ROIC/WACC1.04
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 Year4.91%
EBIT Next 3Y6.9%
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%