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. 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. With these ratings, ADEA could be worth investigating further 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.
ADEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.75%, ADEA belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
ADEA has a better Return On Equity (20.82%) than 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.
The Average Return On Invested Capital over the past 3 years for ADEA 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
ADEA has a better Profit Margin (22.15%) than 87.37% of its industry peers.
ADEA's Operating Margin of 38.12% is amongst the best of the industry. ADEA outperforms 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
ADEA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ADEA has more shares outstanding
Compared to 5 years ago, ADEA has more shares outstanding
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's Altman-Z score of 2.64 is in line compared 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.
Looking at the Debt to FCF ratio, with a value of 2.44, ADEA is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
ADEA has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.06, ADEA is not doing good in the industry: 75.09% of the companies in the same industry are doing better.
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 | 2.64 |
ROIC/WACC1.04
WACC11.44%
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 77.54% 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 78.25% 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.
Measured over the past years, ADEA shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.88% on average per year.
Looking at the last year, ADEA shows a small growth in Revenue. The Revenue has grown by 5.47% in the last year.
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.
Based on estimates for the next years, ADEA will show a small growth in Revenue. The Revenue will grow by 6.76% on average per year.
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.
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
ADEA is valuated correctly with a Price/Earnings ratio of 13.61.
Based on the Price/Earnings ratio, ADEA is valued cheaper than 86.67% 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 27.77.
Based on the Price/Forward Earnings ratio of 11.27, the valuation of ADEA can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADEA indicates a rather cheap valuation: ADEA is cheaper than 88.77% of the companies listed in the same industry.
ADEA is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 11.27 |
4.2 Price Multiples
89.82% of the companies in the same industry are more expensive than ADEA, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADEA indicates a rather cheap valuation: ADEA is cheaper than 95.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.13 | ||
| EV/EBITDA | 10.57 |
4.3 Compensation for Growth
The 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.
ADEA's earnings are expected to grow with 12.02% in the coming years. This may justify a more expensive valuation.
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%.
Compared to an average industry Dividend Yield of 36.72, ADEA pays a better dividend. On top of this ADEA pays more dividend than 93.33% of the companies listed in the same industry.
With a Dividend Yield of 1.20, ADEA pays less dividend than the S&P500 average, which is at 2.36.
| 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
WACC11.44%
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%