18.09 USD
-0.02 (-0.11%)
Last: Jan 30, 2026, 09:58 AM
Taking everything into account, ADEA scores 6 out of 10 in our fundamental rating. ADEA was compared to 278 industry peers in the Software industry. ADEA gets an excellent profitability rating and is at the same time showing great financial health properties. ADEA is valued quite cheap, while showing a decent growth score. This is a good combination! 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 (6.87%) than 76.62% of its industry peers.
- ADEA's Return On Equity of 17.74% is amongst the best of the industry. ADEA outperforms 85.97% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 12.02%, ADEA belongs to the top of the industry, outperforming 87.77% 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 10.73%.
- The last Return On Invested Capital (12.02%) for ADEA is above the 3 year average (11.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 17.74% | ||
| ROIC | 12.02% |
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 (19.32%) than 82.01% of its industry peers.
- Looking at the Operating Margin, with a value of 38.37%, ADEA belongs to the top of the industry, outperforming 96.04% of the companies in the same industry.
- ADEA's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.37% | ||
| PM (TTM) | 19.32% | ||
| 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.
- ADEA has more shares outstanding than it did 1 year ago.
- 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 2.88. 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 better Altman-Z score (2.88) than 61.51% of its industry peers.
- ADEA has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as ADEA would need 2.36 years to pay back of all of its debts.
- ADEA has a better Debt to FCF ratio (2.36) than 66.19% of its industry peers.
- A Debt/Equity ratio of 1.01 is on the high side and indicates that ADEA has dependencies on debt financing.
- ADEA has a Debt to Equity ratio of 1.01. This is in the lower half of the industry: ADEA underperforms 76.62% of its industry peers.
- 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 | 1.01 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 2.88 |
ROIC/WACC1.05
WACC11.48%
2.3 Liquidity
- ADEA has a Current Ratio of 3.72. This indicates that ADEA is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of ADEA (3.72) is better than 80.22% of its industry peers.
- A Quick Ratio of 3.72 indicates that ADEA has no problem at all paying its short term obligations.
- ADEA has a better Quick ratio (3.72) than 80.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.72 | ||
| Quick Ratio | 3.72 |
3. Growth
3.1 Past
- ADEA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.76%, which is quite good.
- 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.53%.
- 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)17.76%
EPS 3Y-14.47%
EPS 5Y-16.88%
EPS Q2Q%3.7%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y-24.61%
Revenue growth 5Y6.07%
Sales Q2Q%1.44%
3.2 Future
- Based on estimates for the next years, ADEA will show a small growth in Earnings Per Share. The EPS will grow by 6.56% on average per year.
- Based on estimates for the next years, ADEA will show a small growth in Revenue. The Revenue will grow by 5.99% on average per year.
EPS Next Y15.75%
EPS Next 2Y6.54%
EPS Next 3Y6.56%
EPS Next 5YN/A
Revenue Next Year11.41%
Revenue Next 2Y5.04%
Revenue Next 3Y5.99%
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
- With a Price/Earnings ratio of 14.36, ADEA is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of ADEA indicates a rather cheap valuation: ADEA is cheaper than 81.30% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.39. ADEA is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 12.55, which indicates a correct valuation of ADEA.
- 83.09% of the companies in the same industry are more expensive than ADEA, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, ADEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 12.55 |
4.2 Price Multiples
- ADEA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ADEA is cheaper than 85.97% of the companies in the same industry.
- ADEA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADEA is cheaper than 90.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.67 | ||
| EV/EBITDA | 11.01 |
4.3 Compensation for Growth
- ADEA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- ADEA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y6.54%
EPS Next 3Y6.56%
5. Dividend
5.1 Amount
- ADEA has a Yearly Dividend Yield of 1.00%.
- Compared to an average industry Dividend Yield of 0.54, ADEA pays a better dividend. On top of this ADEA pays more dividend than 91.73% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, ADEA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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
- 29.69% of the earnings are spent on dividend by ADEA. This is a low number and sustainable payout ratio.
DP29.69%
EPS Next 2Y6.54%
EPS Next 3Y6.56%
ADEIA INC / ADEA FAQ
What is the fundamental rating for ADEA stock?
ChartMill assigns a fundamental rating of 6 / 10 to ADEA.
What is the valuation status for ADEA stock?
ChartMill assigns a valuation rating of 7 / 10 to ADEIA INC (ADEA). This can be considered as Undervalued.
What is the profitability of ADEA stock?
ADEIA INC (ADEA) has a profitability rating of 7 / 10.
What is the earnings growth outlook for ADEIA INC?
The Earnings per Share (EPS) of ADEIA INC (ADEA) is expected to grow by 15.75% in the next year.
How sustainable is the dividend of ADEIA INC (ADEA) stock?
The dividend rating of ADEIA INC (ADEA) is 5 / 10 and the dividend payout ratio is 29.69%.