ADEA

Adeia Inc.

Fundamental data last updated:May 13, 2026

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company profile

SECTOR

Technology

industry

Software - Application

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

08/04/2026

Business Summary

Adeia Inc., together with its subsidiaries, operates as a consumer and entertainment product/solutions licensing company worldwide. It licenses its innovations to companies in the entertainment industry under the Adeia brand. The company licenses its patent portfolios across various markets, including multichannel video programming distributors comprising cable, satellite, and telecommunications television providers that aggregate and distribute linear content over networks, as well as television providers that aggregate and stream linear content over broadband networks; over-the-top video service providers, social media, and other new media companies, such as subscription video-on-demand service providers and social media companies; consumer electronics manufacturers, which includes smart televisions, streaming media devices, video game consoles, mobile devices, DVRs, and other connected media devices; and semiconductors, including sensors, radio frequency components, memory, and logic devices. The company was incorporated in 2019 and is headquartered in San Jose, California.

 


VALUATION

P/E

27.75

Market Cap ($M USD)

$3.41B

Forward P/E

19.97

PEG

0.51

PRICE TO SALES

7.41

PRICE TO BOOK

7.26

EV / EBITDA

13.13

5-Year Average P/E

Free Cash Flow Yield

4.57%

DCF Value

$10.78

Graham Number

$10.34

Price to FCF

21.89

EV to FCF

21.74

Earnings Yield

3.60%

FCF Yield

4.57%

DIVIDEND

Yield

0.65%

Annual Payout

$0.20

Payout Ratio

17.93%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.11

Next Year EPS Growth Estimate

$1.55

Next Year Revenue Growth Estimate

$44.75B

Return on Equity (ROE)

27.68%

FREE CASH FLOW

Operating Margin

46.32%

Debt-to-Equity

0.91

Piotroski F-Score

8

Altman Z-Score

5.15

Return on Invested Capital (ROIC)

23.17%

Current Ratio

3.44

Quick Ratio

3.44

Net Debt to EBITDA

-0.09

Interest Coverage

5.58

Gross Profit margin

86.99%

FCF PER SHARE

$1.42

REVENUE PER SHARE

$4.21

Gainseekers Quantitative Analysis

Summary

ADEA’s current valuation paints a complex picture. Despite a Forward P/E of 19.07 suggesting potential growth, the stock traded significantly above its DCF Value and Graham Number, indicating a possible overvaluation. The Earnings Yield of 3.77% is modest, yet the robust Altman Z-score of 5.16 signals financial stability and low bankruptcy risk. The market seems to be pricing in high expectations, but the stock’s safety net is strong, thanks to its solid financial health.

AI Exposure / Tech Reliance

Positioned in the Software - Application industry, ADEA is well-placed to leverage AI advancements. Its high operating margin and strong ROIC suggest it can efficiently integrate new technologies. This adaptability is crucial in maintaining competitive advantage in the rapidly evolving tech landscape.

The Bull Case

For the discerning GARP investor, ADEA offers compelling reasons to buy. With a stellar ROIC of 23.17% and a Piotroski F-Score of 8, the company demonstrates exceptional capital efficiency and operational health. Its impressive operating margin of 46.32% and a solid FCF Yield indicate strong pricing power and cash generation capabilities. These metrics collectively highlight a company that can deliver sustainable growth and shareholder value.

The Bear Case

However, ADEA is not without its flaws. The Price/Book ratio of 6.93 and Price/Sales of 7.07 suggest the stock is trading at a premium, potentially overextended. Despite a healthy debt profile, the stock's proximity to its 52-week high raises concerns about technical overvaluation. Investors should be wary of paying too much for growth that may already be priced in.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$34.50

Institutional Ownership %

1-Year Beta

1.06

Insider Buying % (6 Mo)

Distance to 52-Week High

11.05%

Distance to 52-Week Low

62.46%

EARNINGS SURPRISE %

15.75%

50-DAY SMA

$26.25

200-DAY SMA

$18.66

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.