# Adeia Inc. (ADEA) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Software. Price $26.50, market value $2.9 billion.

## Valuation
- **P/E (trailing): 24.3×** (5-yr avg 20.5×, 3-yr avg 20.5×). Adeia Inc. trades at 24.3× trailing earnings, close to its own five-year average of 20.5×. The Technology median in the September 2026 study was 32.1×. Forward P/E is 16.5×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.22**. A PEG of 0.22 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 6.2×**. Each dollar of revenue is priced at 6.2×.
- **Price / book: 6.1×**. The shares trade at 6.1× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 6.5%** (5-yr avg 15.5%). Free cash flow equals 6.5% of the market value, below its five-year average of 15.5%, so the shares are pricier on cash than usual. Above 5% is generally attractive.
- **Earnings yield: 4.1%**. The inverse of the P/E: 4.1% of the price is earned each year.

## Profitability
- **Operating margin: 41.6%**. 41.6% of revenue is left after running the business, an exceptional level.
- **Net margin: 25.1%**. 25.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 23.1%**. 23.1% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 18.7%**. Return on all capital, debt included, is 18.7%: comfortably above what that capital costs.
- **Return on assets: 11.8%**. Each dollar of assets produces 11.8% of profit.

## Growth
- **Revenue growth (1 yr): 17.9%** (3-yr 0.3%/yr, 5-yr -3.0%/yr). Revenue grew 17.9% over the last year, against -3.0% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 73.7%** (5-yr -10.8%/yr). Earnings per share rose 73.7%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -2.9%/yr**. Free cash flow has compounded at -2.9% a year over three years.

## Financial health
- **Debt to equity: 0.87**. Debt is 0.87 times equity, moderate leverage.
- **Altman Z-score: 4.77**. A Z-score of 4.77 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 0.75%** ($0.20 per share, trailing). Adeia Inc. yields 0.75%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 20%** (12% of free cash flow). 20% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): -16.7%/yr** (1-yr 0.0%). The dividend has not grown over five years.

## Price and momentum
- **Total return (1 yr): 73.4%** (YTD 54.2%, 3-mo -8.6%). The shares are up 73.4% over twelve months including dividends.
- **From 52-week high: -22.8%** (128.3% above the low). Trading 23% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 49**. An RSI of 49 is neutral.
- **Beta (1 yr): 2.47** (volatility 66%). Beta of 2.47 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ADEA · Page: https://foliofundamentals.com/stocks/adea

Not investment advice.