300.93 USD
+1.77 (+0.59%)
300.93 USD
0 (0%)
ADI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. While ADI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ADI is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make ADI a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year ADI was profitable.
ADI had a positive operating cash flow in the past year.
In the past 5 years ADI has always been profitable.
ADI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ADI has a Return On Assets of 4.72%. This is in the better half of the industry: ADI outperforms 68.14% of its industry peers.
Looking at the Return On Equity, with a value of 6.70%, ADI is in the better half of the industry, outperforming 62.83% of the companies in the same industry.
ADI's Return On Invested Capital of 6.01% is fine compared to the rest of the industry. ADI outperforms 68.14% of its industry peers.
ADI had an Average Return On Invested Capital over the past 3 years of 5.97%. This is below the industry average of 10.75%.
The 3 year average ROIC (5.97%) for ADI is below the current ROIC(6.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 6.7% | ||
| ROIC | 6.01% |
ROA(3y)4.97%
ROA(5y)4.61%
ROE(3y)6.89%
ROE(5y)6.37%
ROIC(3y)5.97%
ROIC(5y)5.69%
1.3 Margins
Looking at the Profit Margin, with a value of 20.58%, ADI belongs to the top of the industry, outperforming 81.42% of the companies in the same industry.
In the last couple of years the Profit Margin of ADI has remained more or less at the same level.
ADI's Operating Margin of 27.25% is amongst the best of the industry. ADI outperforms 85.84% of its industry peers.
In the last couple of years the Operating Margin of ADI has remained more or less at the same level.
ADI's Gross Margin of 61.47% is amongst the best of the industry. ADI outperforms 85.84% of its industry peers.
ADI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.25% | ||
| PM (TTM) | 20.58% | ||
| GM | 61.47% |
OM growth 3Y-4.17%
OM growth 5Y-0.56%
PM growth 3Y-3.48%
PM growth 5Y-1.14%
GM growth 3Y-0.66%
GM growth 5Y-1.37%
2. Health
2.1 Basic Checks
ADI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ADI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ADI has more shares outstanding
The debt/assets ratio for ADI is higher compared to a year ago.
2.2 Solvency
ADI has an Altman-Z score of 7.08. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ADI (7.08) is better than 63.72% of its industry peers.
ADI has a debt to FCF ratio of 2.01. This is a good value and a sign of high solvency as ADI would need 2.01 years to pay back of all of its debts.
ADI's Debt to FCF ratio of 2.01 is fine compared to the rest of the industry. ADI outperforms 69.03% of its industry peers.
ADI has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
ADI has a Debt to Equity ratio (0.25) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 7.08 |
ROIC/WACC0.56
WACC10.77%
2.3 Liquidity
A Current Ratio of 2.19 indicates that ADI has no problem at all paying its short term obligations.
ADI's Current ratio of 2.19 is on the low side compared to the rest of the industry. ADI is outperformed by 72.57% of its industry peers.
A Quick Ratio of 1.68 indicates that ADI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.68, ADI is not doing good in the industry: 67.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
ADI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.10%, which is quite impressive.
Measured over the past years, ADI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.67% on average per year.
ADI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.89%.
The Revenue has been growing by 14.49% on average over the past years. This is quite good.
EPS 1Y (TTM)22.1%
EPS 3Y-6.69%
EPS 5Y9.67%
EPS Q2Q%35.33%
Revenue 1Y (TTM)16.89%
Revenue growth 3Y-2.84%
Revenue growth 5Y14.49%
Sales Q2Q%25.9%
3.2 Future
ADI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.92% yearly.
The Revenue is expected to grow by 11.46% on average over the next years. This is quite good.
EPS Next Y27.8%
EPS Next 2Y20.53%
EPS Next 3Y19.13%
EPS Next 5Y16.92%
Revenue Next Year18.97%
Revenue Next 2Y13.56%
Revenue Next 3Y12.69%
Revenue Next 5Y11.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 38.63, the valuation of ADI can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 71.68% of the companies listed in the same industry.
ADI is valuated rather expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 30.23 indicates a quite expensive valuation of ADI.
69.91% of the companies in the same industry are more expensive than ADI, based on the Price/Forward Earnings ratio.
ADI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.63 | ||
| Fwd PE | 30.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 68.14% of the companies listed in the same industry.
80.53% of the companies in the same industry are more expensive than ADI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.44 | ||
| EV/EBITDA | 29.9 |
4.3 Compensation for Growth
ADI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ADI may justify a higher PE ratio.
ADI's earnings are expected to grow with 19.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.39
PEG (5Y)3.99
EPS Next 2Y20.53%
EPS Next 3Y19.13%
5. Dividend
5.1 Amount
ADI has a Yearly Dividend Yield of 1.32%.
Compared to an average industry Dividend Yield of 0.53, ADI pays a better dividend. On top of this ADI pays more dividend than 84.96% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 1.92, ADI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
The dividend of ADI is nicely growing with an annual growth rate of 10.17%!
ADI has paid a dividend for at least 10 years, which is a reliable track record.
ADI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.17%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
84.88% of the earnings are spent on dividend by ADI. This is not a sustainable payout ratio.
ADI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP84.88%
EPS Next 2Y20.53%
EPS Next 3Y19.13%
300.93
+1.77 (+0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.84%
Inst Owner Change-0.09%
Ins Owners0.05%
Ins Owner Change-8.91%
Market Cap147.35B
Revenue(TTM)11.02B
Net Income(TTM)2.27B
Analysts80.49
Price Target287.18 (-4.57%)
Short Float %2.25%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend3.9
Dividend Growth(5Y)10.17%
DP84.88%
Div Incr Years21
Div Non Decr Years21
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.33%
Min EPS beat(2)0.75%
Max EPS beat(2)3.92%
EPS beat(4)4
Avg EPS beat(4)4.24%
Min EPS beat(4)0.75%
Max EPS beat(4)7.67%
EPS beat(8)8
Avg EPS beat(8)3.99%
EPS beat(12)10
Avg EPS beat(12)2.98%
EPS beat(16)14
Avg EPS beat(16)4%
Revenue beat(2)2
Avg Revenue beat(2)2.08%
Min Revenue beat(2)1.29%
Max Revenue beat(2)2.87%
Revenue beat(4)4
Avg Revenue beat(4)2.51%
Min Revenue beat(4)1.29%
Max Revenue beat(4)4.23%
Revenue beat(8)7
Avg Revenue beat(8)1.52%
Revenue beat(12)9
Avg Revenue beat(12)1.08%
Revenue beat(16)13
Avg Revenue beat(16)1.33%
PT rev (1m)1.73%
PT rev (3m)5.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.81%
EPS NY rev (1m)0.88%
EPS NY rev (3m)5.01%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)4.77%
Revenue NY rev (1m)1.26%
Revenue NY rev (3m)5.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.63 | ||
| Fwd PE | 30.23 | ||
| P/S | 13.37 | ||
| P/FCF | 34.44 | ||
| P/OCF | 30.62 | ||
| P/B | 4.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.9 |
EPS(TTM)7.79
EY2.59%
EPS(NY)9.96
Fwd EY3.31%
FCF(TTM)8.74
FCFY2.9%
OCF(TTM)9.83
OCFY3.27%
SpS22.51
BVpS69.06
TBVpS-2.33
PEG (NY)1.39
PEG (5Y)3.99
Graham Number110.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 6.7% | ||
| ROCE | 6.71% | ||
| ROIC | 6.01% | ||
| ROICexc | 6.54% | ||
| ROICexgc | 41.26% | ||
| OM | 27.25% | ||
| PM (TTM) | 20.58% | ||
| GM | 61.47% | ||
| FCFM | 38.83% |
ROA(3y)4.97%
ROA(5y)4.61%
ROE(3y)6.89%
ROE(5y)6.37%
ROIC(3y)5.97%
ROIC(5y)5.69%
ROICexc(3y)6.28%
ROICexc(5y)5.97%
ROICexgc(3y)40.03%
ROICexgc(5y)44.98%
ROCE(3y)6.67%
ROCE(5y)6.33%
ROICexgc growth 3Y-8.68%
ROICexgc growth 5Y-1.94%
ROICexc growth 3Y-3.41%
ROICexc growth 5Y-2.59%
OM growth 3Y-4.17%
OM growth 5Y-0.56%
PM growth 3Y-3.48%
PM growth 5Y-1.14%
GM growth 3Y-0.66%
GM growth 5Y-1.37%
F-Score8
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.01 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 26.69% | ||
| Cap/Sales | 4.84% | ||
| Interest Coverage | 11.75 | ||
| Cash Conversion | 96.22% | ||
| Profit Quality | 188.71% | ||
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 7.08 |
F-Score8
WACC10.77%
ROIC/WACC0.56
Cap/Depr(3y)38.81%
Cap/Depr(5y)35.77%
Cap/Sales(3y)7.61%
Cap/Sales(5y)6.67%
Profit Quality(3y)162.3%
Profit Quality(5y)159.26%
High Growth Momentum
Growth
EPS 1Y (TTM)22.1%
EPS 3Y-6.69%
EPS 5Y9.67%
EPS Q2Q%35.33%
EPS Next Y27.8%
EPS Next 2Y20.53%
EPS Next 3Y19.13%
EPS Next 5Y16.92%
Revenue 1Y (TTM)16.89%
Revenue growth 3Y-2.84%
Revenue growth 5Y14.49%
Sales Q2Q%25.9%
Revenue Next Year18.97%
Revenue Next 2Y13.56%
Revenue Next 3Y12.69%
Revenue Next 5Y11.46%
EBIT growth 1Y45.04%
EBIT growth 3Y-6.89%
EBIT growth 5Y13.85%
EBIT Next Year57.13%
EBIT Next 3Y23.65%
EBIT Next 5Y20.25%
FCF growth 1Y37.05%
FCF growth 3Y4.25%
FCF growth 5Y18.35%
OCF growth 1Y24.91%
OCF growth 3Y2.45%
OCF growth 5Y19.1%
ANALOG DEVICES INC / ADI FAQ
What is the fundamental rating for ADI stock?
ChartMill assigns a fundamental rating of 6 / 10 to ADI.
What is the valuation status for ADI stock?
ChartMill assigns a valuation rating of 5 / 10 to ANALOG DEVICES INC (ADI). This can be considered as Fairly Valued.
How profitable is ANALOG DEVICES INC (ADI) stock?
ANALOG DEVICES INC (ADI) has a profitability rating of 7 / 10.
Can you provide the financial health for ADI stock?
The financial health rating of ANALOG DEVICES INC (ADI) is 5 / 10.
Is the dividend of ANALOG DEVICES INC sustainable?
The dividend rating of ANALOG DEVICES INC (ADI) is 6 / 10 and the dividend payout ratio is 84.88%.