Adamas Trust, Inc. Fundamental Analysis (NASDAQ: ADAM)
Adamas Trust, Inc. (NASDAQ: ADAM) shows strong financial fundamentals with a PE ratio of 5.96, profit margin of 21.13%, and ROE of 14.08%. The company generates $1.0B in annual revenue with strong year-over-year growth of 44.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ADAM's fundamental strength across five key dimensions:
Efficiency Score
WeakADAM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentADAM trades at attractive valuation levels.
Growth Score
ModerateADAM shows steady but slowing expansion.
Financial Health Score
ModerateADAM shows balanced financial health with some risks.
Profitability Score
ModerateADAM maintains healthy but balanced margins.
Key Financial Metrics
Is ADAM Expensive or Cheap?
P/E Ratio
ADAM trades at 5.96 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ADAM's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Adamas Trust, Inc. at 0.62 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -25.70 times EBITDA. This is generally considered low.
How Well Does ADAM Make Money?
Net Profit Margin
For every $100 in sales, Adamas Trust, Inc. keeps $21.13 as profit after all expenses.
Operating Margin
Core operations generate 37.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.08 in profit for every $100 of shareholder equity.
ROA
Adamas Trust, Inc. generates $1.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Adamas Trust, Inc. produces operating cash flow of $157.98M, showing steady but balanced cash generation.
Free Cash Flow
Adamas Trust, Inc. generates strong free cash flow of $156.16M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.74 in free cash annually.
FCF Yield
ADAM converts 17.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
7.70
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How ADAM Stacks Against Its Sector Peers
| Metric | ADAM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.96 | 23.73 | Better (Cheaper) |
| ROE | 14.08% | 762.00% | Weak |
| Net Margin | 21.13% | 2564.00% | Weak |
| Debt/Equity | 7.70 | -36.87 (disorted) | Distorted |
| Current Ratio | 1.02 | 38.39 | Neutral |
| ROA | 1.56% | 256.00% | Weak |
ADAM outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Adamas Trust, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
458.35%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
152.99%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
23.77%
Industry Style: Income, Inflation Hedge, REIT
High Growth