ADEIA INC (ADEA) Stock Fundamental Analysis
NASDAQ:ADEA - Nasdaq - US98390M1036 - Common Stock - Currency: USD
Overall ADEA gets a fundamental rating of 6 out of 10. We evaluated ADEA against 282 industry peers in the Software industry. ADEA scores excellent on profitability, but there are some minor concerns on its financial health. 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.
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.
ADEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ADEA (6.95%) is better than 78.72% of its industry peers.
The Return On Equity of ADEA (19.40%) is better than 86.88% of its industry peers.
With an excellent Return On Invested Capital value of 12.21%, ADEA belongs to the best of the industry, outperforming 89.36% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ADEA is in line with the industry average of 12.03%.
The 3 year average ROIC (11.98%) for ADEA is below the current ROIC(12.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.95% | ||
| ROE | 19.4% | ||
| ROIC | 12.21% |
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 19.86%. This is amongst the best in the industry. ADEA outperforms 86.88% of its industry peers.
ADEA's Operating Margin of 39.09% is amongst the best of the industry. ADEA outperforms 96.81% of its industry peers.
ADEA's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.09% | ||
| PM (TTM) | 19.86% | ||
| 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.
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 2.29. 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 2.29 is in line compared to the rest of the industry. ADEA outperforms 54.26% of its industry peers.
The Debt to FCF ratio of ADEA is 2.50, which is a good value as it means it would take ADEA, 2.50 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ADEA (2.50) is better than 65.96% of its industry peers.
ADEA has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.13, ADEA is doing worse than 75.53% 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 | 1.13 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 2.29 |
ROIC/WACC1.1
WACC11.12%
2.3 Liquidity
A Current Ratio of 2.94 indicates that ADEA has no problem at all paying its short term obligations.
The Current ratio of ADEA (2.94) is better than 77.31% of its industry peers.
ADEA has a Quick Ratio of 2.94. This indicates that ADEA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.94, ADEA is in the better half of the industry, outperforming 78.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.94 | ||
| Quick Ratio | 2.94 |
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 decrease in Revenue. The Revenue has decreased by -3.28% 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)-3.28%
Revenue growth 3Y-24.61%
Revenue growth 5Y6.07%
Sales Q2Q%-1.84%
3.2 Future
The Earnings Per Share is expected to grow by 10.94% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.71% on average over the next years.
EPS Next Y9.91%
EPS Next 2Y8.04%
EPS Next 3Y10.94%
EPS Next 5YN/A
Revenue Next Year9.29%
Revenue Next 2Y6.83%
Revenue Next 3Y6.71%
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
The Price/Earnings ratio is 11.38, which indicates a very decent valuation of ADEA.
Based on the Price/Earnings ratio, ADEA is valued cheaper than 89.36% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.48. ADEA is valued rather cheaply when compared to this.
ADEA is valuated reasonably with a Price/Forward Earnings ratio of 9.60.
91.84% of the companies in the same industry are more expensive than ADEA, based on the Price/Forward Earnings ratio.
ADEA is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | 9.6 |
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 93.26% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ADEA is valued cheaply inside the industry as 96.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.4 | ||
| EV/EBITDA | 8.5 |
4.3 Compensation for Growth
ADEA's 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)1.15
PEG (5Y)N/A
EPS Next 2Y8.04%
EPS Next 3Y10.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.45%, ADEA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 35.29, ADEA pays a better dividend. On top of this ADEA pays more dividend than 93.97% of the companies listed in the same industry.
ADEA's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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 28.82% of its income as dividend. This is a sustainable payout ratio.
DP28.82%
EPS Next 2Y8.04%
EPS Next 3Y10.94%
14.23
+0.45 (+3.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.3%
Inst Owner Change-0.35%
Ins Owners1.64%
Ins Owner Change24.48%
Market Cap1.54B
Analysts82
Price Target19.89 (39.78%)
Short Float %2.85%
Short Ratio6.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend0.2
Dividend Growth(5Y)-24.17%
DP28.82%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.68%
Min EPS beat(2)1.28%
Max EPS beat(2)8.08%
EPS beat(4)3
Avg EPS beat(4)-0.81%
Min EPS beat(4)-31.95%
Max EPS beat(4)19.35%
EPS beat(8)7
Avg EPS beat(8)8.26%
EPS beat(12)10
Avg EPS beat(12)13.97%
EPS beat(16)13
Avg EPS beat(16)18.54%
Revenue beat(2)1
Avg Revenue beat(2)-0.55%
Min Revenue beat(2)-3.39%
Max Revenue beat(2)2.29%
Revenue beat(4)2
Avg Revenue beat(4)-5.87%
Min Revenue beat(4)-24.04%
Max Revenue beat(4)2.29%
Revenue beat(8)3
Avg Revenue beat(8)-3.33%
Revenue beat(12)4
Avg Revenue beat(12)-6.04%
Revenue beat(16)5
Avg Revenue beat(16)-7.44%
PT rev (1m)12.5%
PT rev (3m)6.36%
EPS NQ rev (1m)-5.86%
EPS NQ rev (3m)-39.29%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)-1.94%
Revenue NQ rev (3m)-18.46%
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | 9.6 | ||
| P/S | 4.06 | ||
| P/FCF | 8.4 | ||
| P/OCF | 7.63 | ||
| P/B | 3.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.5 |
EPS(TTM)1.25
EY8.78%
EPS(NY)1.48
Fwd EY10.42%
FCF(TTM)1.69
FCFY11.9%
OCF(TTM)1.87
OCFY13.11%
SpS3.5
BVpS3.59
TBVpS-1.99
PEG (NY)1.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.95% | ||
| ROE | 19.4% | ||
| ROCE | 14.9% | ||
| ROIC | 12.21% | ||
| ROICexc | 13.82% | ||
| ROICexgc | 44.2% | ||
| OM | 39.09% | ||
| PM (TTM) | 19.86% | ||
| GM | N/A | ||
| FCFM | 48.32% |
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 | 1.13 | ||
| Debt/FCF | 2.5 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 29.21% | ||
| Cap/Sales | 4.89% | ||
| Interest Coverage | 3.43 | ||
| Cash Conversion | 95.3% | ||
| Profit Quality | 243.28% | ||
| Current Ratio | 2.94 | ||
| Quick Ratio | 2.94 | ||
| Altman-Z | 2.29 |
F-Score9
WACC11.12%
ROIC/WACC1.1
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 Y9.91%
EPS Next 2Y8.04%
EPS Next 3Y10.94%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.28%
Revenue growth 3Y-24.61%
Revenue growth 5Y6.07%
Sales Q2Q%-1.84%
Revenue Next Year9.29%
Revenue Next 2Y6.83%
Revenue Next 3Y6.71%
Revenue Next 5YN/A
EBIT growth 1Y35.1%
EBIT growth 3Y77.36%
EBIT growth 5YN/A
EBIT Next Year2.18%
EBIT Next 3Y5.85%
EBIT Next 5YN/A
FCF growth 1Y-3.94%
FCF growth 3Y-4.84%
FCF growth 5Y4.04%
OCF growth 1Y1.13%
OCF growth 3Y-3.28%
OCF growth 5Y4.65%