Adeia Inc.
Adeia Inc. Fundamental Analysis
Adeia Inc. (ADEA) shows moderate financial fundamentals with a PE ratio of 20.27, profit margin of 25.05%, and ROE of 26.34%. The company generates $0.4B in annual revenue with weak year-over-year growth of -3.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.8/100 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 ADEA's fundamental strength across five key dimensions:
Efficiency Score
ExcellentADEA demonstrates superior asset utilization.
Valuation Score
ExcellentADEA trades at attractive valuation levels.
Growth Score
WeakADEA faces weak or negative growth trends.
Financial Health Score
ExcellentADEA maintains a strong and stable balance sheet.
Profitability Score
ExcellentADEA achieves industry-leading margins.
Key Financial Metrics
Is ADEA Expensive or Cheap?
P/E Ratio
ADEA trades at 20.27 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ADEA's PEG of 0.39 indicates potential undervaluation.
Price to Book
The market values Adeia Inc. at 4.68 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.70 times EBITDA. This is generally considered low.
How Well Does ADEA Make Money?
Net Profit Margin
For every $100 in sales, Adeia Inc. keeps $25.05 as profit after all expenses.
Operating Margin
Core operations generate 45.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.34 in profit for every $100 of shareholder equity.
ROA
Adeia Inc. generates $10.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Adeia Inc. generates strong operating cash flow of $158.57M, reflecting robust business health.
Free Cash Flow
Adeia Inc. generates strong free cash flow of $156.76M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.43 in free cash annually.
FCF Yield
ADEA converts 6.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How ADEA Stacks Against Its Sector Peers
| Metric | ADEA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.27 | 35.62 | Better (Cheaper) |
| ROE | 26.34% | 1160.00% | Weak |
| Net Margin | 25.05% | -136515.00% (disorted) | Strong |
| Debt/Equity | 0.91 | 0.39 | Weak (High Leverage) |
| Current Ratio | 3.81 | 4.79 | Strong Liquidity |
| ROA | 10.69% | -311498.00% (disorted) | Strong |
ADEA outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Adeia Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-39.30%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
145.63%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-43.25%
Industry Style: Growth, Innovation, High Beta
Declining