ADEIA INC (ADEA) Stock Fundamental Analysis
USA - NASDAQ:ADEA - US98390M1036 - Common Stock
16.66 USD
-0.18 (-1.07%)
16.75 USD
+0.09 (+0.54%)
Taking everything into account, ADEA scores 6 out of 10 in our fundamental rating. ADEA was compared to 279 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 These ratings could make ADEA a good candidate for value investing.
1. Profitability
1.1 Basic Checks
ADEA had positive earnings in the past year.
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.
In the past 5 years ADEA always reported a positive cash flow from operatings.
1.2 Ratios
ADEA has a better Return On Assets (7.75%) than 81.36% of its industry peers.
ADEA has a better Return On Equity (20.82%) than 87.10% of its industry peers.
ADEA's Return On Invested Capital of 11.87% is amongst the best of the industry. ADEA outperforms 89.25% 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 11.86%.
| 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 Profit Margin of 22.15%. This is amongst the best in the industry. ADEA outperforms 87.46% of its industry peers.
With an excellent Operating Margin value of 38.12%, ADEA belongs to the best of the industry, outperforming 94.98% of the companies in the same industry.
ADEA's Operating Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, ADEA has more shares outstanding
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
ADEA has an Altman-Z score of 2.62. 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 2.62 is in line compared to the rest of the industry. ADEA outperforms 54.12% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 2.44, ADEA is in the better half of the industry, outperforming 65.23% 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.
ADEA's Debt to Equity ratio of 1.06 is on the low side compared to the rest of the industry. ADEA is outperformed by 74.91% 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 | 1.06 | ||
| Debt/FCF | 2.44 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.01
WACC11.78%
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.
With a decent Current ratio value of 3.09, ADEA is doing good in the industry, outperforming 78.85% 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.
ADEA has a Quick ratio of 3.09. This is in the better half of the industry: ADEA outperforms 79.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.09 | ||
| Quick Ratio | 3.09 |
3. Growth
3.1 Past
ADEA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.93%.
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 been growing slightly by 5.47% in the past 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.
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
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
The Price/Earnings ratio is 13.33, which indicates a correct valuation of ADEA.
Based on the Price/Earnings ratio, ADEA is valued cheaply inside the industry as 86.74% of the companies are valued more expensively.
ADEA is valuated cheaply when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.04, the valuation of ADEA can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADEA indicates a rather cheap valuation: ADEA is cheaper than 87.81% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ADEA to the average of the S&P500 Index (22.64), we can say ADEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 11.04 |
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 91.04% 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 94.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.92 | ||
| EV/EBITDA | 10.5 |
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.
A more expensive valuation may be justified as ADEA's earnings are expected to grow with 12.02% in the coming years.
PEG (NY)0.97
PEG (5Y)N/A
EPS Next 2Y9.03%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
ADEA has a Yearly Dividend Yield of 1.21%. 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 40.22. ADEA pays more dividend than 93.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ADEA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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
25.96% of the earnings are spent on dividend by ADEA. This is a low number and sustainable payout ratio.
DP25.96%
EPS Next 2Y9.03%
EPS Next 3Y12.02%
16.66
-0.18 (-1.07%)
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 Change15.48%
Market Cap1.82B
Analysts82
Price Target20.15 (20.95%)
Short Float %2.77%
Short Ratio5.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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)0%
EPS NQ rev (3m)8.03%
EPS NY rev (1m)0%
EPS NY rev (3m)3.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 11.04 | ||
| P/S | 4.81 | ||
| P/FCF | 9.92 | ||
| P/OCF | 9.02 | ||
| P/B | 4.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.5 |
EPS(TTM)1.25
EY7.5%
EPS(NY)1.51
Fwd EY9.06%
FCF(TTM)1.68
FCFY10.08%
OCF(TTM)1.85
OCFY11.09%
SpS3.46
BVpS3.68
TBVpS-1.72
PEG (NY)0.97
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 | 2.62 |
F-Score9
WACC11.78%
ROIC/WACC1.01
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%