Adeia Inc. (ADEA)
Technology · NMS · US
Fundamentals
Valuation and ratings
Adeia Inc. trades at USD25.90, which is 61% below the USD41.58 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 84 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 25.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Adeia Inc.
Adeia Inc., together with its subsidiaries, operates as a media and semiconductor intellectual property licensing platform company in the United States, Asia, Canada, Europe, the Middle East, and internationally. The company licenses its patent portfolios across various markets, including multichannel video programming distributors comprising cable, satellite, and telecommunications television providers that aggregate and distribute linear content over networks, as well as television providers that aggregate and stream linear content over broadband networks; over-the-top video service providers, such as subscription video-on-demand and free advertising-supported streaming service providers, providers that offer online services and devices that enable internet streaming and downloading of movies, television shows, music and other types of media content, as well as content providers, networks, and media companies. It also licenses consumer electronics manufacturers, which includes producers of smart televisions, streaming media devices, video game consoles, mobile devices, content storage devices, and other connected media devices; semiconductors, including providers of memory, logic, sensors, and radio frequency devices; and social media companies that allow users to stream and upload user-generated content. The company licenses its intellectual properties under the Adeia brand. The company was formerly known as Xperi Holding Corporation and changed its name to Adeia Inc. The company was incorporated in 2019 and is headquartered in San Jose, California.
ADEA passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
8 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$15.39M · 0.0% of book
- Select Equity Group, Select Equity Group, L.P.$12.34M · 0.1% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$10.01M · 0.0% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$2.07M · 0.0% of book
- George Soros, SOROS FUND MANAGEMENT LLC$1.21M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Adeia Inc. (ADEA) undervalued?
Against our discounted cash flow estimate of USD41.58, ADEA at USD25.90 is 61% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own ADEA?
8 of the institutions we track reported a position in ADEA in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is ADEA's P/E ratio?
ADEA trades at 25.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for ADEA, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.