ANALOG DEVICES INC (ADI) Stock Fundamental Analysis
NASDAQ:ADI - Nasdaq - US0326541051 - Common Stock - Currency: USD
Taking everything into account, ADI scores 5 out of 10 in our fundamental rating. ADI was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. ADI has an average financial health and profitability rating. ADI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ADI was profitable.
ADI had a positive operating cash flow in the past year.
Each year in the past 5 years ADI has been profitable.
In the past 5 years ADI always reported a positive cash flow from operatings.
1.2 Ratios
ADI has a Return On Assets (3.39%) which is comparable to the rest of the industry.
ADI has a Return On Equity of 4.65%. This is comparable to the rest of the industry: ADI outperforms 55.56% of its industry peers.
ADI's Return On Invested Capital of 4.10% is fine compared to the rest of the industry. ADI outperforms 61.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADI is significantly below the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 4.65% | ||
| ROIC | 4.1% |
ROA(3y)5.22%
ROA(5y)4.8%
ROE(3y)7.17%
ROE(5y)7.07%
ROIC(3y)6.33%
ROIC(5y)5.91%
1.3 Margins
With a decent Profit Margin value of 17.35%, ADI is doing good in the industry, outperforming 76.85% of the companies in the same industry.
In the last couple of years the Profit Margin of ADI has declined.
ADI has a better Operating Margin (21.96%) than 80.56% of its industry peers.
In the last couple of years the Operating Margin of ADI has declined.
With a decent Gross Margin value of 57.08%, ADI is doing good in the industry, outperforming 79.63% of the companies in the same industry.
In the last couple of years the Gross Margin of ADI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.96% | ||
| PM (TTM) | 17.35% | ||
| GM | 57.08% |
OM growth 3Y-5.6%
OM growth 5Y-6.15%
PM growth 3Y-2.98%
PM growth 5Y-5.24%
GM growth 3Y-2.63%
GM growth 5Y-3.15%
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.
Compared to 1 year ago, ADI has about the same amount of shares outstanding.
The number of shares outstanding for ADI has been increased compared to 5 years ago.
Compared to 1 year ago, ADI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.26 indicates that ADI is not in any danger for bankruptcy at the moment.
ADI's Altman-Z score of 6.26 is fine compared to the rest of the industry. ADI outperforms 63.89% of its industry peers.
The Debt to FCF ratio of ADI is 2.43, which is a good value as it means it would take ADI, 2.43 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.43, ADI is doing good in the industry, outperforming 69.44% of the companies in the same industry.
ADI has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
ADI has a Debt to Equity ratio of 0.20. This is comparable to the rest of the industry: ADI outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 6.26 |
ROIC/WACC0.35
WACC11.72%
2.3 Liquidity
ADI has a Current Ratio of 1.84. This is a normal value and indicates that ADI is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.84, ADI is not doing good in the industry: 78.70% of the companies in the same industry are doing better.
A Quick Ratio of 1.35 indicates that ADI should not have too much problems paying its short term obligations.
ADI's Quick ratio of 1.35 is on the low side compared to the rest of the industry. ADI is outperformed by 76.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The earnings per share for ADI have decreased strongly by -30.68% in the last year.
Measured over the past 5 years, ADI shows a small growth in Earnings Per Share. The EPS has been growing by 4.42% on average per year.
The Revenue for ADI has decreased by -23.39% in the past year. This is quite bad
The Revenue has been growing by 9.49% on average over the past years. This is quite good.
EPS 1Y (TTM)-30.68%
EPS 3Y-0.26%
EPS 5Y4.42%
EPS Q2Q%-5.78%
Revenue 1Y (TTM)-23.39%
Revenue growth 3Y8.81%
Revenue growth 5Y9.49%
Sales Q2Q%-3.56%
3.2 Future
The Earnings Per Share is expected to grow by 18.95% on average over the next years. This is quite good.
Based on estimates for the next years, ADI will show a quite strong growth in Revenue. The Revenue will grow by 11.00% on average per year.
EPS Next Y12.48%
EPS Next 2Y18.47%
EPS Next 3Y19.17%
EPS Next 5Y18.95%
Revenue Next Year8.32%
Revenue Next 2Y10.88%
Revenue Next 3Y10.66%
Revenue Next 5Y11%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ADI is valuated quite expensively with a Price/Earnings ratio of 38.04.
The rest of the industry has a similar Price/Earnings ratio as ADI.
ADI is valuated rather expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 26.68, which means the current valuation is very expensive for ADI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ADI to the average of the S&P500 Index (22.68), we can say ADI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.04 | ||
| Fwd PE | 26.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADI is valued a bit cheaper than 60.19% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 70.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.96 | ||
| EV/EBITDA | 29.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ADI does not grow enough to justify the current Price/Earnings ratio.
ADI's earnings are expected to grow with 19.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.05
PEG (5Y)8.61
EPS Next 2Y18.47%
EPS Next 3Y19.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.62%, ADI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.34, ADI pays a better dividend. On top of this ADI pays more dividend than 87.04% of the companies listed in the same industry.
ADI's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
The dividend of ADI is nicely growing with an annual growth rate of 11.42%!
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)11.42%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
ADI pays out 109.80% of its income as dividend. This is not a sustainable payout ratio.
ADI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP109.8%
EPS Next 2Y18.47%
EPS Next 3Y19.17%
238.91
-4.91 (-2.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners92.64%
Inst Owner Change2.09%
Ins Owners0.07%
Ins Owner Change-10.69%
Market Cap118.53B
Analysts78.33
Price Target255.3 (6.86%)
Short Float %1.65%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly Dividend3.62
Dividend Growth(5Y)11.42%
DP109.8%
Div Incr Years20
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.46%
Min EPS beat(2)1.02%
Max EPS beat(2)3.89%
EPS beat(4)4
Avg EPS beat(4)3.75%
Min EPS beat(4)0.45%
Max EPS beat(4)9.63%
EPS beat(8)6
Avg EPS beat(8)2.35%
EPS beat(12)10
Avg EPS beat(12)3.92%
EPS beat(16)14
Avg EPS beat(16)4.12%
Revenue beat(2)2
Avg Revenue beat(2)0.56%
Min Revenue beat(2)0.46%
Max Revenue beat(2)0.66%
Revenue beat(4)3
Avg Revenue beat(4)0.54%
Min Revenue beat(4)-0.49%
Max Revenue beat(4)1.51%
Revenue beat(8)5
Avg Revenue beat(8)0.37%
Revenue beat(12)9
Avg Revenue beat(12)0.94%
Revenue beat(16)13
Avg Revenue beat(16)1.11%
PT rev (1m)-0.4%
PT rev (3m)-1.71%
EPS NQ rev (1m)-0.39%
EPS NQ rev (3m)-9.96%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-5.96%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)-3.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.04 | ||
| Fwd PE | 26.68 | ||
| P/S | 12.57 | ||
| P/FCF | 37.96 | ||
| P/OCF | 30.77 | ||
| P/B | 3.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.87 |
EPS(TTM)6.28
EY2.63%
EPS(NY)8.95
Fwd EY3.75%
FCF(TTM)6.29
FCFY2.63%
OCF(TTM)7.77
OCFY3.25%
SpS19
BVpS70.9
TBVpS-2.66
PEG (NY)3.05
PEG (5Y)8.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 4.65% | ||
| ROCE | 4.58% | ||
| ROIC | 4.1% | ||
| ROICexc | 4.32% | ||
| ROICexgc | 27.09% | ||
| OM | 21.96% | ||
| PM (TTM) | 17.35% | ||
| GM | 57.08% | ||
| FCFM | 33.12% |
ROA(3y)5.22%
ROA(5y)4.8%
ROE(3y)7.17%
ROE(5y)7.07%
ROIC(3y)6.33%
ROIC(5y)5.91%
ROICexc(3y)6.53%
ROICexc(5y)6.17%
ROICexgc(3y)44.45%
ROICexgc(5y)45.96%
ROCE(3y)7.03%
ROCE(5y)6.55%
ROICexcg growth 3Y-18.89%
ROICexcg growth 5Y-14.51%
ROICexc growth 3Y4.4%
ROICexc growth 5Y-12.69%
OM growth 3Y-5.6%
OM growth 5Y-6.15%
PM growth 3Y-2.98%
PM growth 5Y-5.24%
GM growth 3Y-2.63%
GM growth 5Y-3.15%
F-Score5
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.43 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 34.71% | ||
| Cap/Sales | 7.75% | ||
| Interest Coverage | 7.72 | ||
| Cash Conversion | 92.29% | ||
| Profit Quality | 190.92% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 6.26 |
F-Score5
WACC11.72%
ROIC/WACC0.35
Cap/Depr(3y)40.05%
Cap/Depr(5y)34.52%
Cap/Sales(3y)7.94%
Cap/Sales(5y)6.29%
Profit Quality(3y)145.19%
Profit Quality(5y)151.71%
High Growth Momentum
Growth
EPS 1Y (TTM)-30.68%
EPS 3Y-0.26%
EPS 5Y4.42%
EPS Q2Q%-5.78%
EPS Next Y12.48%
EPS Next 2Y18.47%
EPS Next 3Y19.17%
EPS Next 5Y18.95%
Revenue 1Y (TTM)-23.39%
Revenue growth 3Y8.81%
Revenue growth 5Y9.49%
Sales Q2Q%-3.56%
Revenue Next Year8.32%
Revenue Next 2Y10.88%
Revenue Next 3Y10.66%
Revenue Next 5Y11%
EBIT growth 1Y-48.04%
EBIT growth 3Y2.72%
EBIT growth 5Y2.76%
EBIT Next Year41.96%
EBIT Next 3Y22.79%
EBIT Next 5Y18.42%
FCF growth 1Y-12.21%
FCF growth 3Y9.29%
FCF growth 5Y9.56%
OCF growth 1Y-20.03%
OCF growth 3Y12.1%
OCF growth 5Y11.33%