Latest Ratios: P/E Ratio 25.8x · EV/EBITDA 11.8x · ROE 25.3%. (2002–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.8B | $1.9B | $1.6B | $1.4B | $1.0B | $524M | $464M | $240M | $238M | $318M | $587M |
| Enterprise Value | $3.2B | $2.3B | $2.0B | $1.9B | $1.6B | $1.2B | $1.2B | $520M | $606M | $760M | $1.1B |
| P/E Ratio → | 25.79 | 17.42 | 24.53 | 20.65 | — | — | 3.16 | — | — | — | 10.44 |
| P/S Ratio | 6.35 | 4.39 | 4.20 | 3.60 | 2.32 | 0.60 | 0.52 | 0.86 | 0.59 | 0.85 | 2.26 |
| P/B Ratio | 6.00 | 4.05 | 3.99 | 3.92 | 3.38 | 0.39 | 0.32 | 0.44 | 0.38 | 0.73 | 1.16 |
| P/FCF | 18.86 | 13.05 | 8.31 | 9.55 | 5.99 | 2.37 | 1.26 | 1.54 | 1.86 | 2.21 | 4.44 |
| P/OCF | 17.81 | 12.33 | 7.44 | 9.15 | 5.57 | 2.23 | 1.08 | 1.42 | 1.76 | 2.16 | 4.03 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.19 | 5.28 | 4.99 | 3.74 | 1.39 | 1.36 | 1.86 | 1.49 | 2.03 | 4.25 |
| EV / EBITDA | 11.85 | 8.60 | 9.24 | 8.05 | 5.95 | 4.81 | 3.26 | 12.06 | 3.67 | 6.12 | 6.56 |
| EV / EBIT | 15.16 | 12.70 | 14.86 | 13.61 | 10.58 | 144.12 | 7.00 | — | 18.61 | — | 11.86 |
| EV / FCF | — | 15.42 | 10.45 | 13.25 | 9.65 | 5.51 | 3.30 | 3.33 | 4.75 | 5.28 | 8.35 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 87.2% | 87.2% | 80.6% | 75.5% | 74.0% | 59.7% | 71.6% | 58.9% | 70.0% | 66.4% | 86.6% |
| Operating Margin | 47.2% | 47.2% | 37.8% | 37.4% | 36.8% | 2.9% | 22.2% | -22.7% | 12.3% | 1.3% | 51.7% |
| Net Profit Margin | 25.1% | 25.1% | 17.2% | 17.3% | -67.4% | -6.3% | 16.5% | -22.3% | -0.1% | -15.1% | 21.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 25.3% | 25.3% | 17.2% | 20.5% | -36.0% | -4.0% | 14.7% | -10.8% | -0.1% | -12.0% | 11.0% |
| ROA | 10.4% | 10.4% | 5.9% | 5.8% | -16.1% | -2.1% | 7.8% | -5.5% | -0.0% | -4.9% | 6.5% |
| ROIC | 19.1% | 19.1% | 12.5% | 12.0% | 8.2% | 0.9% | 9.8% | -5.3% | 4.0% | 0.4% | 13.3% |
| ROCE | 21.1% | 21.1% | 14.0% | 14.2% | 9.7% | 1.1% | 11.4% | -5.8% | 4.6% | 0.5% | 16.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.89 | 0.89 | 1.22 | 1.67 | 2.44 | 0.58 | 0.64 | 0.65 | 0.78 | 1.33 | 1.15 |
| Debt / EBITDA | 1.60 | 1.60 | 2.26 | 2.47 | 2.67 | 3.06 | 2.47 | 8.21 | 2.92 | 4.67 | 3.46 |
| Net Debt / Equity | — | 0.74 | 1.03 | 1.52 | 2.06 | 0.52 | 0.52 | 0.51 | 0.60 | 1.01 | 1.02 |
| Net Debt / EBITDA | 1.32 | 1.32 | 1.89 | 2.25 | 2.25 | 2.74 | 2.02 | 6.48 | 2.23 | 3.56 | 3.07 |
| Debt / FCF | — | 2.37 | 2.14 | 3.70 | 3.65 | 3.14 | 2.04 | 1.79 | 2.89 | 3.07 | 3.91 |
| Interest Coverage | 4.49 | 4.49 | 2.55 | 2.28 | 3.42 | 0.22 | 4.59 | -2.55 | 1.27 | -1.06 | 38.66 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.81 | 3.81 | 3.53 | 2.02 | 1.55 | 2.74 | 2.43 | 5.84 | 7.34 | 2.54 | 3.92 |
| Quick Ratio | 3.81 | 3.81 | 3.53 | 2.02 | 1.55 | 2.71 | 2.39 | 5.84 | 7.06 | 2.54 | 3.92 |
| Cash Ratio | 1.71 | 1.71 | 1.51 | 0.82 | 0.69 | 0.74 | 1.14 | 2.52 | 2.85 | 2.07 | 2.22 |
| Asset Turnover | — | 0.43 | 0.34 | 0.35 | 0.36 | 0.36 | 0.33 | 0.27 | 0.33 | 0.34 | 0.22 |
| Inventory Turnover | — | — | — | — | — | 69.39 | 25.78 | 1151.27 | 8.08 | — | — |
| Days Sales Outstanding | — | 130.45 | 134.83 | 107.56 | 109.96 | 37.80 | 101.64 | 190.28 | 202.87 | 27.22 | 95.32 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.8% | 1.1% | 1.4% | 1.5% | 20.0% | 4.0% | 6.6% | 16.4% | 16.5% | 12.4% | 6.7% |
| Payout Ratio | 19.6% | 19.6% | 33.7% | 31.7% | — | — | 21.0% | — | — | — | 69.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.9% | 5.7% | 4.1% | 4.8% | — | — | 31.6% | — | — | — | 9.6% |
| FCF Yield | 5.3% | 7.7% | 12.0% | 10.5% | 16.7% | 42.1% | 79.6% | 64.9% | 53.7% | 45.2% | 22.5% |
| Buyback Yield | 1.6% | 2.2% | 2.0% | 0.8% | 3.3% | 19.2% | 17.4% | 1.9% | 18.8% | 6.1% | 12.0% |
| Total Shareholder Yield | 2.3% | 3.4% | 3.4% | 2.3% | 23.2% | 23.3% | 24.0% | 18.3% | 35.3% | 18.5% | 18.7% |
| Shares Outstanding | — | $113M | $113M | $113M | $108M | $105M | $84M | $49M | $49M | $49M | $50M |
Includes 30+ ratios · 24 years · Updated daily
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Quick answers to the most common questions about buying ADEA stock.
Adeia Inc.'s current P/E ratio is 25.8x. The historical average is 12.3x. This places it at the 93th percentile of its historical range.
Adeia Inc.'s current EV/EBITDA is 11.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 5.0x.
Adeia Inc.'s return on equity (ROE) is 25.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 9.7%.
Based on historical data, Adeia Inc. is trading at a P/E of 25.8x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Adeia Inc.'s current dividend yield is 0.75% with a payout ratio of 19.6%.
Adeia Inc. has 87.2% gross margin and 47.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Adeia Inc.'s Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Revenue lumpiness and litigation exposure
Metrics are mathematically derived from official filings.
Margin Volatility Masks Core Earning Power
ADEA's gross margin swung from 92.2% in Q4 2025 to 26.4% in Q2 2026, per quarterly reports, yet adjusted EBITDA margin hit 59% in Q2, indicating underlying profitability remains robust.
The dramatic gross margin collapse in Q2 2026 appears tied to a one-time cost spike, as COGS surged to $70.7M versus typical $14-16M, likely reflecting a litigation settlement or contract cost. Excluding this anomaly, the core IP licensing model sustains gross margins above 80%, as seen in prior quarters. Operating margin of 26.4% in Q2 2026, while down from 63.9% in Q4 2025, still reflects the high fixed-cost structure where R&D and SG&A remain stable, suggesting the drop is not indicative of structural deterioration.
ROIC Cyclicality Reflects Licensing Deal Timing
ROIC peaked at 10.7% in Q4 2025 but fell to 2.4% in Q2 2026, based on reported figures, illustrating the lumpy nature of IP licensing revenue and its impact on capital efficiency.
The wide quarterly swings in ROIC—from 1.9% in Q1 2024 to 10.7% in Q4 2025—are driven by the timing of large licensing agreements rather than operational decay. The asset-light model means invested capital is modest, so returns are highly sensitive to revenue recognition. Investors should focus on the cumulative trend: over the past ten quarters, cumulative operating cash flow of $483.6M versus net income of $215.9M suggests that cash returns on capital are stronger than accounting returns, as reported in cash flow statements.
Working Capital Efficiency Distorted by Licensing Timing
DSO spiked to 144 days in Q2 2026 from 77 days in Q4 2025, per quarterly data, reflecting the lumpy collection of licensing fees, while the cash conversion cycle remains negative due to minimal inventory.
The absence of inventory (DIO not reported) and low DPO (7 days in Q2 2026) indicate a pure IP licensing model with negligible physical working capital. The elevated DSO is not a sign of deteriorating collection but rather the timing of large contract payments, as evidenced by the strong operating cash flow of $55M in Q2 2026. Asset turnover of 0.10x is inherently low for an IP company, but this is misleading; the real efficiency metric is cash conversion, which remains robust with FCF margins above 50% in recent quarters.
Deleveraging Path Improves Interest Coverage
Debt-to-equity fell from 1.59 in Q1 2024 to 0.83 in Q2 2026, while interest coverage improved to 2.95x from 1.46x, according to balance sheet data, indicating reduced financial risk.
Total debt declined 29% to $395.3M, and equity rose to $477.2M, strengthening the balance sheet. However, D/EBITDA remains elevated at 9.53x in Q2 2026, reflecting the volatility of EBITDA; in Q4 2025, it was just 3.26x. This volatility means coverage ratios can swing dramatically, but the trend of deleveraging and the strong cash generation provide a cushion. The low absolute debt level and high liquidity (current ratio 3.25) suggest refinancing risk is manageable, though investors should monitor the timing of debt maturities.
Ample Liquidity Buffers Revenue Swings
Current ratio improved to 3.25 in Q2 2026 from 2.23 in Q1 2024, with cash at $72.8M, as per balance sheet data, providing a strong buffer against lumpy licensing cash flows.
The quick ratio equals the current ratio (3.25) because inventory is negligible, confirming the asset-light model. This liquidity cushion is critical given the quarterly revenue volatility, as seen in the swing from $182.6M in Q4 2025 to $96.1M in Q2 2026. Even under a stress scenario where licensing revenue drops sharply, the cash position and low fixed costs (R&D and SG&A averaging ~$44M per quarter) would allow the company to sustain operations for multiple quarters without external funding.
Misapplied P/E Overstates Earnings Volatility
The trailing P/E of 28.39 is misleading given the lumpy earnings; forward P/E of 19.74 better reflects normalized earnings, as per valuation data, but EV/EBITDA of 12.91 is more appropriate for this IP model.
The most commonly misapplied ratio for ADEA is the P/E ratio, because net income is heavily distorted by one-time items, stock-based compensation, and the timing of licensing revenue. For example, Q2 2026 net income included a $10.5M SBC charge, over 60% of net income. Instead, investors should use EV/EBITDA or EV/EBIT, which better capture the cash-generating ability of the asset-light model. The forward EV/EBITDA of 16.07 appears higher than trailing, but this reflects the market's expectation of normalized EBITDA after the Q4 2025 spike; a more stable metric is P/FCF of 20.76, which aligns with the robust cash generation.