(ADEA) ADEIA - Overview
Sector: Technology | Industry: Software - Application | Exchange: NASDAQ (USA) | Market Cap: 3.000m USD | Total Return: 120.4% in 12m
Avg Turnover: 61.0M
EPS Trend: 24.3%
Qual. Beats: 0
Rev. Trend: 43.9%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
Rs Leader, Idiosyncratic Leader
Adeia Inc. (ADEA) is a specialized intellectual property (IP) licensing firm based in San Jose, California. The company manages extensive patent portfolios across the media and semiconductor sectors, generating revenue through licensing agreements with pay-TV providers, streaming platforms, consumer electronics manufacturers, and semiconductor designers.
The business model relies on high-margin recurring royalties and licensing fees rather than physical product manufacturing. In the semiconductor space, Adeia focuses on foundational technologies including hybrid bonding and advanced packaging, which are increasingly critical as traditional Moore’s Law scaling becomes more capital-intensive.
The company’s media IP covers essential functions for digital entertainment, such as content discovery, digital video recording (DVR), and multi-screen viewing. Investors looking for deeper fundamental analysis of this licensing model may find additional insights on ValueRay.
Formerly known as Xperi Holding Corporation, Adeia operates as a standalone entity following its 2022 spin-off. It serves a global client base across North America, Europe, and Asia, positioning itself as a key intermediary in the technological supply chain for connected devices and digital media distribution.
- Long-term license renewals with major pay-TV and OTT streaming providers
- Growth in hybrid bonding and semiconductor patent licensing volume
- Strategic expansion of media IP into social media and gaming platforms
- High operating margins driven by low-cost intellectual property monetization model
- Interest rate fluctuations affecting debt servicing costs on corporate leverage
| Net Income: 122.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA -1.36 > 1.0 |
| NWC/Revenue: 43.36% < 20% (prev 45.64%; Δ -2.29% < -1%) |
| CFO/TA 0.16 > 3% & CFO 159.4m > Net Income 122.0m |
| Net Debt (284.6m) to EBITDA (258.0m): 1.10 < 3 |
| Current Ratio: 3.44 > 1.5 & < 3 |
| Outstanding Shares: last quarter (114.2m) vs 12m ago 1.05% < -2% |
| Gross Margin: 86.99% > 18% (prev 83.25%; Δ 3.73% > 0.5%) |
| Asset Turnover: 44.08% > 50% (prev 34.98%; Δ 9.09% > 0%) |
| Interest Coverage Ratio: 5.16 > 6 (EBIT TTM 197.5m / Interest Expense TTM 38.3m) |
| A: 0.20 (Total Current Assets 281.3m - Total Current Liabilities 81.7m) / Total Assets 1.00b |
| B: 0.11 (Retained Earnings 109.4m / Total Assets 1.00b) |
| C: 0.19 (EBIT TTM 197.5m / Avg Total Assets 1.04b) |
| D: 0.87 (Book Value of Equity 466.6m / Total Liabilities 535.8m) |
| Altman-Z'' = 3.85 = AA |
| DSRI: 0.88 (Receivables 200.5m/187.3m, Revenue 460.5m/380.3m) |
| GMI: 0.96 (GM 83.25% / 86.99%) |
| AQI: 0.95 (AQ_t 0.71 / AQ_t-1 0.74) |
| SGI: 1.21 (Revenue 460.5m / 380.3m) |
| TATA: -0.04 (NI 122.0m - CFO 159.4m) / TA 1.00b) |
| Beneish M = -3.04 (Cap -4..+1) = AA |
As of June 07, 2026, the stock is trading at USD 28.98 with a total of 2,980,438 shares traded.
Over the past week, the price has changed by +8.50%,
over one month by +4.34%,
over three months by +38.55% and
over the past year by +120.38%.
ADEIA has received a consensus analysts rating of 4.33. Therefore, it is recommended to buy ADEA.
- StrongBuy: 1
- Buy: 2
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 37 | 27.7% |
P/E Trailing = 24.9541
P/E Forward = 20.6186
P/S = 6.5148
P/B = 6.6781
P/EG = 1.5095
Revenue TTM = 460.5m USD
EBIT TTM = 197.5m USD
EBITDA TTM = 258.0m USD
Long Term Debt = 370.3m USD (from longTermDebt, last quarter)
Short Term Debt = 21.0m USD (from shortTermDebt, last quarter)
Debt = 400.4m USD (corrected: LT Debt 370.3m + ST Debt 21.0m) + Leases 9.10m
Net Debt = 284.6m USD (calculated: Debt 400.4m - CCE 115.8m)
Enterprise Value = 3.28b USD (3.00b + Debt 400.4m - CCE 115.8m)
Interest Coverage Ratio = 5.16 (Ebit TTM 197.5m / Interest Expense TTM 38.3m)
EV/FCF = 21.08x (Enterprise Value 3.28b / FCF TTM 155.8m)
FCF Yield = 4.74% (FCF TTM 155.8m / Enterprise Value 3.28b)
FCF Margin = 33.84% (FCF TTM 155.8m / Revenue TTM 460.5m)
Net Margin = 26.50% (Net Income TTM 122.0m / Revenue TTM 460.5m)
Gross Margin = 86.99% ((Revenue TTM 460.5m - Cost of Revenue TTM 59.9m) / Revenue TTM)
Gross Margin QoQ = 84.33% (prev 92.23%)
Tobins Q-Ratio = 3.28 (Enterprise Value 3.28b / Total Assets 1.00b)
Interest Expense / Debt = 9.56% (Interest Expense 38.3m / Debt 400.4m)
Taxrate = 21.27% (33.0m / 155.0m)
NOPAT = 155.5m (EBIT 197.5m * (1 - 21.27%))
Current Ratio = 3.44 (Total Current Assets 281.3m / Total Current Liabilities 81.7m)
Debt / Equity = 0.86 (Debt 400.4m / totalStockholderEquity, last quarter 466.6m)
Debt / EBITDA = 1.10 (Net Debt 284.6m / EBITDA 258.0m)
Debt / FCF = 1.83 (Net Debt 284.6m / FCF TTM 155.8m)
Total Stockholder Equity = 440.9m (last 4 quarters mean from totalStockholderEquity)
RoA = 11.68% (Net Income 122.0m / Total Assets 1.00b)
RoE = 27.68% (Net Income TTM 122.0m / Total Stockholder Equity 440.9m)
RoCE = 24.35% (EBIT 197.5m / Capital Employed (Equity 440.9m + L.T.Debt 370.3m))
RoIC = 16.93% (NOPAT 155.5m / Invested Capital 918.7m)
WACC = 11.80% (E(3.00b)/V(3.40b) * Re(12.37%) + D(400.4m)/V(3.40b) * Rd(9.56%) * (1-Tc(0.21)))
Discount Rate = 12.37% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 15.56 | Cagr: 0.54%
[DCF] Terminal Value 61.40% ; FCFF base≈167.0m ; Y1≈146.4m ; Y5≈118.3m
[DCF] Fair Price = 8.45 (EV 1.22b - Net Debt 284.6m = Equity 931.6m / Shares 110.3m; r=11.80% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 24.33 | EPS CAGR: 4.14% | SUE: 0.52 | # QB: 0
Revenue Correlation: 43.92 | Revenue CAGR: 4.25% | SUE: 0.43 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.31 | Chg30d=-13.12% | Revisions=-43% | Analysts=4
EPS next Quarter (2026-09-30): EPS=0.35 | Chg30d=-5.97% | Revisions=-43% | Analysts=4
EPS current Year (2026-12-31): EPS=1.42 | Chg30d=-1.11% | Revisions=+14% | GrowthEPS=-13.9% | GrowthRev=-5.9%
EPS next Year (2027-12-31): EPS=1.55 | Chg30d=+3.45% | Revisions=+33% | GrowthEPS=+9.0% | GrowthRev=+7.3%
[Analyst] Revisions Ratio: -43%