Adeia Stock To $22?

Adeia (ADEA) stock has jumped 31% during the past day, and is currently trading at $16.67. Our multi-factor assessment suggests that it may be time to buy more shares of ADEA stock. We have, overall, a positive view of the stock, and a price of $22 may not be out of reach. We believe there is not much to fear in ADEA stock given its overall Strong operating performance and financial condition. Considering stock’s Moderate valuation, we think it is Attractive.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $1.8 Bil in market cap, Adeia provides innovative solutions and services to enhance efficiency and drive growth across various industries.

[1] Valuation Looks Moderate

This table highlights how ADEA is valued vs broader market. For more details see: ADEA Valuation Ratios

[2] Growth Is Strong

• Adeia has seen its top line grow at an average rate of 177.5% over the last 3 years
• Its revenues have grown 11% from $344 Mil to $380 Mil in the last 12 months
• Also, its quarterly revenues grew 1.4% to $87 Mil in the most recent quarter from $86 Mil a year ago.

This table highlights how ADEA is growing vs broader market. For more details see: ADEA Revenue Comparison

[3] Profitability Appears Very Strong

• ADEA last 12 month operating income was $146 Mil representing operating margin of 38.4%
• With cash flow margin of 54.1%, it generated nearly $206 Mil in operating cash flow over this period
• For the same period, ADEA generated nearly $73 Mil in net income, suggesting net margin of about 19.3%

This table highlights how ADEA profitability vs broader market. For more details see: ADEA Operating Income Comparison

[4] Financial Stability Looks Very Strong

• ADEA Debt was $448 Mil at the end of the most recent quarter, while its current Market Cap is $1.8 Bil. This implies Debt-to-Equity Ratio of 24.8%
• ADEA Cash (including cash equivalents) makes up $115 Mil of $1.1 Bil in total Assets. This yields a Cash-to-Assets Ratio of 10.8%

[5] Downturn Resilience Is Very Weak

ADEA has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• ADEA stock fell 45.3% from a high of $12.46 on 17 March 2021 to $6.82 on 16 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 27 December 2023
• Since then, the stock increased to a high of $18.01 on 6 October 2025 , and currently trades at $16.67

 
2020 Covid Pandemic

• ADEA stock fell 46.2% from a high of $9.98 on 20 February 2020 to $5.37 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 4 December 2020

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read ADEA Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.