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ADEIA CORP (ADEA)



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Upturn Advisory Summary
04/01/2025: ADEA (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -49.96% | Avg. Invested days 24 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.46B USD | Price to earnings Ratio 23.54 | 1Y Target Price 18.33 |
Price to earnings Ratio 23.54 | 1Y Target Price 18.33 | ||
Volume (30-day avg) 912418 | Beta 1.12 | 52 Weeks Range 9.55 - 17.40 | Updated Date 04/2/2025 |
52 Weeks Range 9.55 - 17.40 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 1.49% | Basic EPS (TTM) 0.57 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 17.19% | Operating Margin (TTM) 51.43% |
Management Effectiveness
Return on Assets (TTM) 8.07% | Return on Equity (TTM) 17.16% |
Valuation
Trailing PE 23.54 | Forward PE 10 | Enterprise Value 1830355705 | Price to Sales(TTM) 3.87 |
Enterprise Value 1830355705 | Price to Sales(TTM) 3.87 | ||
Enterprise Value to Revenue 4.87 | Enterprise Value to EBITDA 8.86 | Shares Outstanding 108445000 | Shares Floating 105784547 |
Shares Outstanding 108445000 | Shares Floating 105784547 | ||
Percent Insiders 1.43 | Percent Institutions 101.3 |
Analyst Ratings
Rating 4.33 | Target Price 16.33 | Buy 2 | Strong Buy 1 |
Buy 2 | Strong Buy 1 | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
ADEIA CORP
Company Overview
History and Background
Adeia Corp., formerly Xperi Holding Corporation, is a technology company that focuses on inventing, developing, and licensing technologies that enable extraordinary experiences for billions of people, everywhere. Originally known for its audio technology, it has expanded its focus to include imaging, semiconductors, and connected car technologies.
Core Business Areas
- Semiconductor & IP Licensing: Development and licensing of semiconductor and intellectual property (IP) solutions, primarily focused on advanced packaging and interconnect technologies crucial for high-performance computing, AI, and mobile applications.
- Media & Entertainment: Licensing of audio, imaging, and video technologies for use in consumer electronics devices such as TVs, smartphones, and automotive infotainment systems. Focused on improving the user experience through innovative solutions.
Leadership and Structure
The leadership team is composed of seasoned executives with experience in technology licensing, semiconductor manufacturing, and corporate strategy. The company operates with a functional organizational structure, aligning teams around specific technologies and business segments.
Top Products and Market Share
Key Offerings
- DTS Audio Solutions: A suite of audio processing technologies designed to improve the listening experience in various devices. Competitors include Dolby Laboratories (DLB) and SRS Labs. Market share for certain DTS codecs is significant in automotive and home theatre systems, estimated at ~30-40% depending on the specific technology and region. Revenue is derived from licensing fees paid by device manufacturers.
- Invensas DBI and ZiBond Technologies: Die-to-wafer hybrid bonding technologies used in advanced semiconductor packaging. Key competitors are Besi and Applied Materials. ADEIA focuses on high bandwidth memory (HBM) applications with market share estimated to be growing significantly as HBM adoption increases. This technology enables smaller, faster, and more energy-efficient chips which are critical for AI accelerators and other high-performance applications. The company's estimated portion of the HBM market is between 15% and 20%, as of late 2023.
- HD Radio: A digital broadcast system for AM and FM radio. Competitors are iBiquity Digital Corporation. HD Radio has a large number of users in North America, with millions of HD Radio receivers in vehicles. There are ongoing efforts for further adoption in cars and is seeing increased global adoption outside of the USA.
Market Dynamics
Industry Overview
The technology licensing and semiconductor IP market is highly competitive, driven by increasing demand for advanced technology across various sectors. The demand for semiconductor IP is being fueled by the growth of artificial intelligence, 5G, and IoT.
Positioning
Adeia Corp. is positioned as a key innovator and IP licensor, specializing in audio, imaging, and semiconductor technologies. Its competitive advantage lies in its patented technologies and its ability to offer complete solutions to its clients. Adeia is becoming a critical player in the semiconductor sector due to their hybrid bonding and interconnect technologies.
Total Addressable Market (TAM)
The TAM for the technologies that ADEIA provides sits in the multiple billions of dollars. For example, the TAM for advanced packaging is projected to grow significantly over the next decade. ADEIA is well-positioned to capture a substantial portion of this market through its advanced packaging technologies.
Upturn SWOT Analysis
Strengths
- Strong IP portfolio with valuable patents
- Established relationships with leading technology companies
- Expertise in audio, imaging, and semiconductor technologies
- Experienced management team
- Proven licensing model generating recurring revenue
Weaknesses
- Reliance on licensing revenue, which can be volatile
- Exposure to patent litigation and challenges
- Limited manufacturing capabilities, relying on partners for production
- Integration of acquired technologies and businesses can be challenging
Opportunities
- Growing demand for advanced technology in consumer electronics, automotive, and semiconductor industries
- Expansion into new markets and applications (e.g., AR/VR, AI)
- Strategic acquisitions to expand technology portfolio
- Increased adoption of hybrid bonding technologies
Threats
- Competition from larger technology companies with greater resources
- Technological obsolescence of existing technologies
- Economic downturns affecting consumer spending
- Changes in IP regulations and enforcement
- Patent infringement by competitors
Competitors and Market Share
Key Competitors
- Dolby Laboratories (DLB)
- ARM Holdings (ARM)
- Qualcomm (QCOM)
Competitive Landscape
Adeia Corp. competes with companies like Dolby Laboratories in audio technology and Qualcomm in semiconductor IP. Adeia is gaining strength in advanced packaging as it provides solutions that are important to the next generations of AI and cloud applications.
Major Acquisitions
Tessera Technologies
- Year: 2016
- Acquisition Price (USD millions): 850
- Strategic Rationale: Expanded Adeia's IP portfolio and technology licensing business.
Growth Trajectory and Initiatives
Historical Growth: Information not available.
Future Projections: Future projections are unavailable without real-time market access and analyst forecasts.
Recent Initiatives: Recent initiatives include focusing on advanced packaging solutions and semiconductor IP, expansion into new markets and growing their portfolio of patents.
Summary
Adeia Corp. has a strong IP portfolio and is strategically positioned in key technology areas like audio, imaging, and semiconductors. The company's licensing model provides a recurring revenue stream, but it faces competition and risks associated with patent litigation. Future growth is dependent on expanding into new markets and capitalizing on opportunities in emerging technologies like AI. The success of their advanced packaging technologies will determine the success of their stock in coming years.
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Sources and Disclaimers
Data Sources:
- Company Filings
- Industry Reports
- Market Research Reports
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered investment advice. Market data is dynamic and may change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About ADEIA CORP
Exchange NASDAQ | Headquaters San Jose, CA, United States | ||
IPO Launch date 2003-11-20 | CEO & Director Mr. Paul E. Davis J.D. | ||
Sector Technology | Industry Software - Application | Full time employees 150 | Website https://adeia.com |
Full time employees 150 | Website https://adeia.com |
Adeia Inc., together with its subsidiaries, operates as a media and semiconductor intellectual property licensing 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, 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. Adeia Inc. was incorporated in 2019 and is headquartered in San Jose, California.
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