Adeia Inc. Common Stock (ADEA)

Fast Grower

FairStock Score: 70/100 — STEADY

Key Financials

Current Price	$29.89
Market Cap	$3.4B
P/E Ratio	27.42
ROE	28.51%
Dividend Yield	0.69%
Sector	Technology

Strengths

Generates $175 million in annual free cash flow (5.2% yield on market cap)
Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
High return on equity of 25.3% demonstrating efficient capital deployment
Altman Z-Score of 4.6 confirms minimal bankruptcy risk and strong solvency
Healthy net profit margin of 16.6% showing consistent profitability

Concerns

Trades significantly above Graham Number ($10) with negative 208% margin of safety—limited downside protection

AI Analysis

Adeia Inc. Common Stock is a small-cap technology company valued at $3.4 billion. The business generates $443 million in annual revenue with a 16.6% net margin and $175 million in free cash flow. From a quality standpoint, Adeia shows solid Piotroski F-Score of 7/9 and healthy Altman Z-Score of 4.6. On valuation, the stock is trading at a premium 30.4x earnings, with trades far above its Graham Number ($10) with no margin of safety. Growth dynamics show revenue growing at 53.3% and profit growth of 104.6%. Our composite FairStock Score of 70/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Adeia's 53% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $175 million in annual free cash flow (5.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 30x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer