ADEIA INC (ADEA) Stock Fundamental Analysis
NASDAQ:ADEA - Nasdaq - US98390M1036 - Common Stock - Currency: USD
ADEA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. ADEA has an average financial health and profitability rating. ADEA has a bad growth rate and is valued cheaply. 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.
The reported net income has been mixed in the past 5 years: ADEA reported negative net income in multiple years.
ADEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.89%, ADEA is doing good in the industry, outperforming 76.16% of the companies in the same industry.
ADEA has a Return On Equity of 16.30%. This is amongst the best in the industry. ADEA outperforms 82.92% of its industry peers.
The Return On Invested Capital of ADEA (11.37%) is better than 88.26% of its industry peers.
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 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.89% | ||
| ROE | 16.3% | ||
| ROIC | 11.37% |
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's Profit Margin of 17.19% is amongst the best of the industry. ADEA outperforms 82.56% of its industry peers.
ADEA has a Operating Margin of 37.83%. This is amongst the best in the industry. ADEA outperforms 97.15% of its industry peers.
In the last couple of years the Operating Margin of ADEA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.83% | ||
| PM (TTM) | 17.19% | ||
| 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.
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 2.14. 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 2.14. This is comparable to the rest of the industry: ADEA outperforms 53.02% of its industry peers.
ADEA has a debt to FCF ratio of 2.50. This is a good value and a sign of high solvency as ADEA would need 2.50 years to pay back of all of its debts.
ADEA's Debt to FCF ratio of 2.50 is fine compared to the rest of the industry. ADEA outperforms 65.12% of its industry peers.
ADEA has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
ADEA has a worse Debt to Equity ratio (1.15) than 75.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.03
WACC10.99%
2.3 Liquidity
ADEA has a Current Ratio of 3.53. This indicates that ADEA is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.53, ADEA is doing good in the industry, outperforming 77.22% of the companies in the same industry.
ADEA has a Quick Ratio of 3.53. This indicates that ADEA is financially healthy and has no problem in meeting its short term obligations.
ADEA has a better Quick ratio (3.53) than 77.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.53 | ||
| Quick Ratio | 3.53 |
3. Growth
3.1 Past
The earnings per share for ADEA have decreased by -8.63% in the last 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.
ADEA shows a decrease in Revenue. In the last year, the revenue decreased by -3.28%.
Measured over the past years, ADEA shows a small growth in Revenue. The Revenue has been growing by 6.07% on average per year.
EPS 1Y (TTM)-8.63%
EPS 3Y-14.47%
EPS 5Y-16.88%
EPS Q2Q%74.07%
Revenue 1Y (TTM)-3.28%
Revenue growth 3Y-24.61%
Revenue growth 5Y6.07%
Sales Q2Q%37.18%
3.2 Future
The Earnings Per Share is expected to grow by 7.73% on average over the next years.
The Revenue is expected to grow by 6.70% on average over the next years.
EPS Next Y9.28%
EPS Next 2Y7.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.1%
Revenue Next 2Y6.7%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.69, which indicates a very decent valuation of ADEA.
Compared to the rest of the industry, the Price/Earnings ratio of ADEA indicates a rather cheap valuation: ADEA is cheaper than 91.81% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.88. ADEA is valued rather cheaply when compared to this.
ADEA is valuated reasonably with a Price/Forward Earnings ratio of 8.87.
Based on the Price/Forward Earnings ratio, ADEA is valued cheaply inside the industry as 94.66% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.20. ADEA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADEA is valued cheaply inside the industry as 93.24% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADEA indicates a rather cheap valuation: ADEA is cheaper than 98.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.02 | ||
| EV/EBITDA | 7.85 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ADEA may justify a higher PE ratio.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y7.73%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ADEA has a Yearly Dividend Yield of 1.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 14.64, ADEA pays a better dividend. On top of this ADEA pays more dividend than 95.02% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.45, ADEA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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
33.68% of the earnings are spent on dividend by ADEA. This is a low number and sustainable payout ratio.
DP33.68%
EPS Next 2Y7.73%
EPS Next 3YN/A
12.31
-0.19 (-1.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.48%
Inst Owner Change0.06%
Ins Owners1.01%
Ins Owner Change10.04%
Market Cap1.33B
Analysts82.22
Price Target18.7 (51.91%)
Short Float %2.57%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend0.2
Dividend Growth(5Y)-24.17%
DP33.68%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.94%
Min EPS beat(2)-31.95%
Max EPS beat(2)8.08%
EPS beat(4)3
Avg EPS beat(4)3.23%
Min EPS beat(4)-31.95%
Max EPS beat(4)19.35%
EPS beat(8)7
Avg EPS beat(8)13.44%
EPS beat(12)10
Avg EPS beat(12)17.4%
EPS beat(16)13
Avg EPS beat(16)19.97%
Revenue beat(2)1
Avg Revenue beat(2)-10.87%
Min Revenue beat(2)-24.04%
Max Revenue beat(2)2.29%
Revenue beat(4)2
Avg Revenue beat(4)-5.05%
Min Revenue beat(4)-24.04%
Max Revenue beat(4)2.29%
Revenue beat(8)4
Avg Revenue beat(8)-0.88%
Revenue beat(12)4
Avg Revenue beat(12)-9.61%
Revenue beat(16)5
Avg Revenue beat(16)-7.35%
PT rev (1m)0%
PT rev (3m)12.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 8.87 | ||
| P/S | 3.55 | ||
| P/FCF | 7.02 | ||
| P/OCF | 6.28 | ||
| P/B | 3.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.85 |
EPS(TTM)1.27
EY10.32%
EPS(NY)1.39
Fwd EY11.27%
FCF(TTM)1.75
FCFY14.25%
OCF(TTM)1.96
OCFY15.92%
SpS3.47
BVpS3.66
TBVpS-2.01
PEG (NY)1.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.89% | ||
| ROE | 16.3% | ||
| ROCE | 13.88% | ||
| ROIC | 11.37% | ||
| ROICexc | 12.74% | ||
| ROICexgc | 38.9% | ||
| OM | 37.83% | ||
| PM (TTM) | 17.19% | ||
| GM | N/A | ||
| FCFM | 50.57% |
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-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2.5 | ||
| Debt/EBITDA | 2.11 | ||
| Cap/Depr | 30.64% | ||
| Cap/Sales | 5.93% | ||
| Interest Coverage | 3.04 | ||
| Cash Conversion | 98.8% | ||
| Profit Quality | 294.27% | ||
| Current Ratio | 3.53 | ||
| Quick Ratio | 3.53 | ||
| Altman-Z | 2.14 |
F-Score6
WACC10.99%
ROIC/WACC1.03
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)-8.63%
EPS 3Y-14.47%
EPS 5Y-16.88%
EPS Q2Q%74.07%
EPS Next Y9.28%
EPS Next 2Y7.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.28%
Revenue growth 3Y-24.61%
Revenue growth 5Y6.07%
Sales Q2Q%37.18%
Revenue Next Year10.1%
Revenue Next 2Y6.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-2.18%
EBIT growth 3Y77.36%
EBIT growth 5YN/A
EBIT Next Year0.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.88%
FCF growth 3Y-4.84%
FCF growth 5Y4.04%
OCF growth 1Y39.09%
OCF growth 3Y-3.28%
OCF growth 5Y4.65%