Adeia Inc. Common Stock (ADEA)

FairStock Score: 70/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I ask whether the business is understandable, durable, and cheap. Adeia is an intellectual-property licensing platform: it owns patent portfolios and licenses them to media and semiconductor companies. That can be high-margin, but it depends on renewals and litigation. Filed figures show fiscal Q2 2026 (quarter ended 2026-06-30) revenue of $96.1M and net income of $17.4M; fiscal Q1 2026 (quarter ended 2026-03-31) had revenue of $104.8M and net income of $22.8M. For FY2025 (period ended 2025-12-31), revenue was $443.4M and net income $111.1M, up from FY2024 revenue $376.0M and net income $64.6M. That is real improvement, and trailing free cash flow of $172.0M gives a 6.7% FCF yield based on the 2026-10-13 close. But the balance sheet and valuation temper enthusiasm: at that close, FairStock calculations show P/E 21.23, P/B 5.34, and a Graham Number of $10.31, implying a -124.44% margin of safety—price is well above a conservative asset-value estimate. FairStock calculations show ROE 27.88% and ROCE 13.06%, respectable, but D/E 0.83 and a Piotroski F-Score of 4/9 suggest only average financial momentum. The computed Lynch category is TURNAROUND—returned to profit after a loss within the last three years. IP licensing has switching costs but no ordinary moat; renewal risk is the key. I'd want a wider margin of safety before calling it a compelling value.

In plain English: Adeia makes money by licensing patents for media and semiconductor technology. The company is profitable and generates cash, but its quarterly results bounce around and the share price at the close on 2026-10-13 looks full compared with conservative measures of earnings and book value. It is not an obvious bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer