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ADX

BEARISH
$23.69 Live
Adams Diversified Equity Fund, Inc. · NYSE
$16.5 52W Range $23.85

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AI Analysis

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Confidence
78%
The Advanced Deterministic Scorecard reveals a weak financial health profile with a Piotroski F-Score of 4/9, indicating borderline stability, and the absence of an Altman Z-Score prevents a full distress risk assessment. Despite a low P/E of 7.72 and a current price ($23.69) below the Graham Number ($40.16), the company exhibits alarming earnings deterioration, negative earnings growth, and a dangerously high payout ratio of 109.18%, raising sustainability concerns. Profitability margins are anomalously high—particularly the 981.24% profit margin and 100% gross margin—likely reflecting non-operational or one-time gains rather than sustainable business performance. The technical trend score of 10/100 signals strong bearish momentum, and lack of analyst coverage further limits confidence in forward visibility.

Key Strengths

Low P/E ratio of 7.72, significantly below sector average of 22.41, suggesting potential undervaluation
Current price ($23.69) is below Graham Number ($40.16), indicating defensive value appeal
High dividend yield of 8.00%, attractive in income-focused portfolios
Revenue growth of 6.20% YoY shows top-line resilience
Price/Sales of 79.97 appears inflated but may reflect fund structure rather than operational business

Key Risks

Piotroski F-Score of 4/9 indicates weak financial health, with red flags in profitability and leverage trends
Earnings growth of -48.40% YoY and -50.10% QoQ reflect severe profitability deterioration
Payout ratio of 109.18% exceeds earnings, threatening dividend sustainability
ROA of only 0.48% suggests poor asset efficiency despite high ROE
Technical trend score of 10/100 indicates strong bearish momentum near 52-week high
AI Fair Value Estimate
Based on comprehensive analysis
$30.16
+27.3% above current price

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