Adeia (ADEA) AI Stock Analysis

• Market Cap: $1.68B
• Dividend Yield: 1.29%
• Average Volume (3M): 522.97K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 1.07
• Revenue Growth: 5.47%
• EPS Growth: 78.91%
• Country: US
• Employees: 150
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 0.25
• Shares Outstanding: 109,368,600
• 10 Day Avg. Volume: 488,128
• 30 Day Avg. Volume: 522,970
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 5.09
• Enterprise Value/Gross Profit: 9.39
• Enterprise Value/Ebitda: 10.23
• 1Y Price Target: $19.75
• Price Target Upside: 28.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: $17.00 ▲(10.68% Upside)

Adeia's overall stock score is driven by strong earnings call insights and positive technical indicators. While financial performance shows resilience in profitability, concerns about revenue decline and high leverage persist. The valuation is fair, supporting a moderately positive outlook.

Positive Factors

Financial Health

Debt reduction is a positive sign for financial health and future stability.

Revenue Growth

The company has been successful in adding a handful of licenses each quarter, driving the expectation for baseline revenue growth.

Technological Innovation

Adeia revealed RapidCool technology that could help reduce the heat from semiconductors running in high computational environments.

Negative Factors

Deal Uncertainty

Lowering 2Q25 estimates on the uncertain timing of a large deal.

License Pipeline Delays

There has been no success in signing a large license that has been in the pipeline for the past year.

Litigation Costs

Litigation costs were $7.2M, a multi-year high, impacting financial resources.

Adeia Business Overview & Revenue Model

Company Description

Adeia (ADEA) is a technology company specializing in the development of innovative solutions for the media and entertainment sectors. The company focuses on providing intellectual property and licensing services, with a strong emphasis on enhancing consumer experiences through advanced technologies. Adeia's core products include patents and licensing related to digital content delivery, user interface enhancements, and data management systems, aimed at driving efficiency and engagement in media consumption.

How the Company Makes Money

Adeia generates revenue primarily through licensing agreements for its extensive portfolio of patents and intellectual property. The company monetizes its innovations by partnering with various media and technology firms that seek to leverage Adeia's patented technologies in their products and services. Key revenue streams include upfront licensing fees, ongoing royalties from licensees based on product sales or usage, and strategic collaborations with industry leaders to co-develop new technologies. Adeia's ability to secure high-value partnerships in the rapidly evolving media landscape also contributes significantly to its earnings.

Adeia Financial Statement Overview

Summary

Adeia's financial performance is mixed. Strong profitability metrics are offset by declining revenue and high leverage. Efficient cost management and cash conversion are positives, but the negative revenue growth and high debt levels pose risks.

Income Statement

Adeia's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a strong EBIT margin of 36.16% and a net profit margin of 19.86%, reflecting good profitability. However, the revenue growth rate is negative, indicating a decline in revenue over the period. The gross profit margin remains high, suggesting efficient cost management, but the overall revenue decline is a concern.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.20 in the TTM, indicating significant leverage, which could pose financial risks. The return on equity is healthy at 19.83%, showing effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing stability.

Cash Flow

Cash flow analysis shows a slight decline in free cash flow growth at -6.1% in the TTM, but the operating cash flow to net income ratio is strong at 2.26, indicating good cash generation relative to net income. The free cash flow to net income ratio is also robust at 0.93, suggesting efficient cash conversion, despite the recent decline in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	378.67M	376.02M	388.79M	438.93M	877.70M	515.92M
Gross Profit	205.27M	376.02M	388.79M	324.71M	391.21M	813.66M
EBITDA	188.56M	206.50M	237.82M	315.49M	351.50M	437.11M
Net Income	83.88M	64.62M	67.37M	-295.88M	-55.46M	146.76M
Balance Sheet
Total Assets	1.08B	1.10B	1.11B	1.21B	2.47B	2.70B
Cash, Cash Equivalents and Short-Term Investments	116.48M	110.39M	83.57M	114.56M	140.96M	257.13M
Total Debt	457.85M	485.42M	595.93M	736.29M	820.14M	923.49M
Total Liabilities	679.98M	701.39M	748.93M	909.11M	1.13B	1.25B
Stockholders Equity	402.92M	396.57M	356.62M	301.41M	1.35B	1.46B
Cash Flow
Free Cash Flow	189.00M	210.64M	146.41M	170.16M	220.65M	369.29M
Operating Cash Flow	202.03M	212.46M	152.75M	183.02M	234.79M	427.60M
Investing Cash Flow	-21.94M	-24.02M	-34.49M	-2.91M	-6.21M	17.84M
Financing Cash Flow	-162.29M	-164.17M	-178.26M	-263.26M	-196.25M	-351.14M

Adeia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADEA, the sentiment is Positive. The current price of 15.36 is above the 20-day moving average (MA) of 14.18, above the 50-day MA of 14.03, and above the 200-day MA of 13.38, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 63.77 is Neutral, neither overbought nor oversold. The STOCH value of 81.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADEA.

Adeia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UPBD	77 Outperform	$1.48B	14.06	15.93%	5.91%	7.49%	84.67%
ADEA	72 Outperform	$1.68B	21.01	22.01%	1.29%	5.47%	78.91%
MLNK	63 Neutral	$1.47B	―	-5.41%	―	5.96%	50.29%
SPT	62 Neutral	$885.38M	―	-32.50%	―	14.79%	27.52%
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%
SEMR	60 Neutral	$1.14B	182.58	-0.50%	―	22.16%	-107.92%
AMPL	59 Neutral	$1.46B	―	-33.99%	―	9.93%	-11.15%

Adeia Corporate Events

Adeia Announces Key Approvals at Annual Meeting

At the 2025 Annual Meeting of Stockholders held on May 8, 2025, Adeia Inc. announced the approval of several key proposals. These included the election of seven board members, an advisory vote on executive compensation, and the ratification of PricewaterhouseCoopers LLP as the independent auditor for the fiscal year ending December 31, 2025. These decisions are likely to impact the company’s governance and financial oversight, reflecting stockholder confidence in the current leadership and strategic direction.