ADEIA INC (ADEA) Stock Fundamental Analysis
NASDAQ:ADEA - Nasdaq - US98390M1036 - Common Stock - Currency: USD
Taking everything into account, ADEA scores 6 out of 10 in our fundamental rating. ADEA was compared to 283 industry peers in the Software industry. ADEA has an excellent profitability rating, but there are some minor concerns on its financial health. 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
In the past year ADEA was profitable.
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
The Return On Assets of ADEA (6.95%) is better than 78.80% of its industry peers.
ADEA's Return On Equity of 19.40% is amongst the best of the industry. ADEA outperforms 84.81% of its industry peers.
ADEA has a Return On Invested Capital of 12.21%. This is amongst the best in the industry. ADEA outperforms 88.69% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADEA is in line with the industry average of 12.21%.
The last Return On Invested Capital (12.21%) for ADEA is above the 3 year average (11.98%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 19.86%, ADEA belongs to the top of the industry, outperforming 86.22% of the companies in the same industry.
ADEA has a better Operating Margin (39.09%) than 96.82% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ADEA is 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 2.22. 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 2.22 is in line compared to the rest of the industry. ADEA outperforms 52.65% 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 has a Debt to FCF ratio of 2.50. This is in the better half of the industry: ADEA outperforms 65.37% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that ADEA has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.13, ADEA is doing worse than 75.27% of the companies in the same industry.
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 | 1.13 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 2.22 |
ROIC/WACC1.07
WACC11.39%
2.3 Liquidity
A Current Ratio of 2.94 indicates that ADEA has no problem at all paying its short term obligations.
ADEA has a Current ratio of 2.94. This is in the better half of the industry: ADEA outperforms 75.27% of its industry peers.
A Quick Ratio of 2.94 indicates that ADEA has no problem at all paying its short term obligations.
ADEA has a better Quick ratio (2.94) than 76.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.94 | ||
| Quick Ratio | 2.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.34% 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 small growth in Revenue. The Revenue has grown by 7.16% in the last year.
The Revenue has been growing slightly by 6.07% on average over the past years.
EPS 1Y (TTM)10.34%
EPS 3Y-14.47%
EPS 5Y-16.88%
EPS Q2Q%4%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y-24.61%
Revenue growth 5Y6.07%
Sales Q2Q%5.11%
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 8.10% yearly.
The Revenue is expected to grow by 7.02% on average over the next years.
EPS Next Y10.14%
EPS Next 2Y8.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.95%
Revenue Next 2Y7.02%
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.
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
Based on the Price/Earnings ratio of 10.24, the valuation of ADEA can be described as reasonable.
90.11% of the companies in the same industry are more expensive than ADEA, based on the Price/Earnings ratio.
ADEA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.03.
The Price/Forward Earnings ratio is 8.83, which indicates a very decent valuation of ADEA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADEA indicates a rather cheap valuation: ADEA is cheaper than 93.29% of the companies listed in the same industry.
ADEA is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 8.83 |
4.2 Price Multiples
ADEA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ADEA is cheaper than 92.93% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ADEA is valued cheaply inside the industry as 96.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.74 | ||
| EV/EBITDA | 8.11 |
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)1.01
PEG (5Y)N/A
EPS Next 2Y8.1%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.45%, ADEA has a reasonable but not impressive dividend return.
In the last 3 months the price of ADEA has falen by -24.49%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ADEA's Dividend Yield is rather good when compared to the industry average which is at 14.19. ADEA pays more dividend than 94.70% of the companies in the same industry.
ADEA's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| 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
28.82% of the earnings are spent on dividend by ADEA. This is a low number and sustainable payout ratio.
DP28.82%
EPS Next 2Y8.1%
EPS Next 3YN/A
NASDAQ:ADEA (5/22/2025, 1:57:18 PM)
13.11
+0.1 (+0.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.48%
Inst Owner Change-3.45%
Ins Owners1.01%
Ins Owner Change14.62%
Market Cap1.42B
Analysts82.22
Price Target17.68 (34.86%)
Short Float %2.69%
Short Ratio4.38
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)-5.45%
PT rev (3m)6.12%
EPS NQ rev (1m)-35.01%
EPS NQ rev (3m)-30.33%
EPS NY rev (1m)0.78%
EPS NY rev (3m)-2.58%
Revenue NQ rev (1m)-16.13%
Revenue NQ rev (3m)-12.09%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 8.83 | ||
| P/S | 3.74 | ||
| P/FCF | 7.74 | ||
| P/OCF | 7.02 | ||
| P/B | 3.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.11 |
EPS(TTM)1.28
EY9.76%
EPS(NY)1.48
Fwd EY11.32%
FCF(TTM)1.69
FCFY12.93%
OCF(TTM)1.87
OCFY14.23%
SpS3.51
BVpS3.59
TBVpS-1.99
PEG (NY)1.01
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 | 2.22 |
F-Score9
WACC11.39%
ROIC/WACC1.07
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)10.34%
EPS 3Y-14.47%
EPS 5Y-16.88%
EPS Q2Q%4%
EPS Next Y10.14%
EPS Next 2Y8.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.16%
Revenue growth 3Y-24.61%
Revenue growth 5Y6.07%
Sales Q2Q%5.11%
Revenue Next Year9.95%
Revenue Next 2Y7.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y35.1%
EBIT growth 3Y77.36%
EBIT growth 5YN/A
EBIT Next Year0.83%
EBIT Next 3YN/A
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%