ANALOG DEVICES INC (ADI) Stock Fundamental Analysis
USA - NASDAQ:ADI - US0326541051 - Common Stock
233.41 USD
+1.41 (+0.61%)
233.41 USD
0 (0%)
Taking everything into account, ADI scores 6 out of 10 in our fundamental rating. ADI was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. ADI has only an average score on both its financial health and profitability. ADI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ADI had positive earnings in the past year.
In the past year ADI had a positive cash flow from operations.
ADI had positive earnings in each of the past 5 years.
In the past 5 years ADI always reported a positive cash flow from operatings.
1.2 Ratios
ADI has a better Return On Assets (4.06%) than 66.07% of its industry peers.
With a decent Return On Equity value of 5.74%, ADI is doing good in the industry, outperforming 64.29% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.21%, ADI is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ADI is below the industry average of 10.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 5.74% | ||
| ROIC | 5.21% |
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
Looking at the Profit Margin, with a value of 18.85%, ADI belongs to the top of the industry, outperforming 83.04% of the companies in the same industry.
ADI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 25.32%, ADI belongs to the top of the industry, outperforming 83.93% of the companies in the same industry.
ADI's Operating Margin has declined in the last couple of years.
ADI has a Gross Margin of 60.15%. This is amongst the best in the industry. ADI outperforms 86.61% of its industry peers.
In the last couple of years the Gross Margin of ADI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.32% | ||
| PM (TTM) | 18.85% | ||
| GM | 60.15% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADI is destroying value.
ADI has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ADI has been increased compared to 5 years ago.
The debt/assets ratio for ADI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.68 indicates that ADI is not in any danger for bankruptcy at the moment.
ADI's Altman-Z score of 5.68 is fine compared to the rest of the industry. ADI outperforms 62.50% of its industry peers.
ADI has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as ADI would need 2.36 years to pay back of all of its debts.
ADI's Debt to FCF ratio of 2.36 is fine compared to the rest of the industry. ADI outperforms 66.96% 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.
Looking at the Debt to Equity ratio, with a value of 0.25, ADI is in line with its industry, outperforming 46.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 5.68 |
ROIC/WACC0.49
WACC10.71%
2.3 Liquidity
A Current Ratio of 2.32 indicates that ADI has no problem at all paying its short term obligations.
With a Current ratio value of 2.32, ADI is not doing good in the industry: 63.39% of the companies in the same industry are doing better.
ADI has a Quick Ratio of 1.79. This is a normal value and indicates that ADI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.79, ADI is doing worse than 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
ADI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.14%.
ADI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.42% yearly.
The Revenue has been growing slightly by 7.08% in the past year.
The Revenue has been growing by 9.49% on average over the past years. This is quite good.
EPS 1Y (TTM)7.14%
EPS 3Y-0.26%
EPS 5Y4.42%
EPS Q2Q%29.75%
Revenue 1Y (TTM)7.08%
Revenue growth 3Y8.81%
Revenue growth 5Y9.49%
Sales Q2Q%24.57%
3.2 Future
Based on estimates for the next years, ADI will show a very strong growth in Earnings Per Share. The EPS will grow by 20.93% on average per year.
Based on estimates for the next years, ADI will show a quite strong growth in Revenue. The Revenue will grow by 12.86% on average per year.
EPS Next Y22.53%
EPS Next 2Y21.45%
EPS Next 3Y20.06%
EPS Next 5Y20.93%
Revenue Next Year16.58%
Revenue Next 2Y14.91%
Revenue Next 3Y12.84%
Revenue Next 5Y12.86%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 32.42, ADI can be considered very expensive at the moment.
ADI's Price/Earnings ratio is a bit cheaper when compared to the industry. ADI is cheaper than 72.32% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, ADI is valued a bit more expensive.
The Price/Forward Earnings ratio is 24.80, which indicates a rather expensive current valuation of ADI.
ADI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADI is cheaper than 69.64% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.72, ADI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.42 | ||
| Fwd PE | 24.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADI is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ADI is valued a bit cheaper than 79.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.22 | ||
| EV/EBITDA | 25.43 |
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.
A more expensive valuation may be justified as ADI's earnings are expected to grow with 20.06% in the coming years.
PEG (NY)1.44
PEG (5Y)7.34
EPS Next 2Y21.45%
EPS Next 3Y20.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.70%, ADI has a reasonable but not impressive dividend return.
ADI's Dividend Yield is rather good when compared to the industry average which is at 2.16. ADI pays more dividend than 85.71% of the companies in the same industry.
ADI's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
On average, the dividend of ADI grows each year by 11.42%, which is quite nice.
ADI has been paying a dividend for at least 10 years, so it has a reliable track record.
ADI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.42%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
96.76% of the earnings are spent on dividend by ADI. This is not a sustainable payout ratio.
The dividend of ADI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP96.76%
EPS Next 2Y21.45%
EPS Next 3Y20.06%
233.41
+1.41 (+0.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.65%
Inst Owner Change-1.48%
Ins Owners0.05%
Ins Owner Change-5.55%
Market Cap114.83B
Revenue(TTM)10.39B
Net Income(TTM)1.96B
Analysts79.5
Price Target272.69 (16.83%)
Short Float %1.49%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend3.62
Dividend Growth(5Y)11.42%
DP96.76%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.79%
Min EPS beat(2)3.92%
Max EPS beat(2)7.67%
EPS beat(4)4
Avg EPS beat(4)4.3%
Min EPS beat(4)1.02%
Max EPS beat(4)7.67%
EPS beat(8)7
Avg EPS beat(8)3.83%
EPS beat(12)10
Avg EPS beat(12)3.3%
EPS beat(16)14
Avg EPS beat(16)4%
Revenue beat(2)2
Avg Revenue beat(2)3.55%
Min Revenue beat(2)2.87%
Max Revenue beat(2)4.23%
Revenue beat(4)4
Avg Revenue beat(4)2.3%
Min Revenue beat(4)0.46%
Max Revenue beat(4)4.23%
Revenue beat(8)6
Avg Revenue beat(8)1.3%
Revenue beat(12)9
Avg Revenue beat(12)1.14%
Revenue beat(16)13
Avg Revenue beat(16)1.27%
PT rev (1m)0.5%
PT rev (3m)5.99%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)9.44%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)4.07%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)6.94%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.42 | ||
| Fwd PE | 24.8 | ||
| P/S | 11.06 | ||
| P/FCF | 31.22 | ||
| P/OCF | 27.59 | ||
| P/B | 3.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.43 |
EPS(TTM)7.2
EY3.08%
EPS(NY)9.41
Fwd EY4.03%
FCF(TTM)7.48
FCFY3.2%
OCF(TTM)8.46
OCFY3.62%
SpS21.11
BVpS69.29
TBVpS-2.57
PEG (NY)1.44
PEG (5Y)7.34
Graham Number105.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 5.74% | ||
| ROCE | 5.82% | ||
| ROIC | 5.21% | ||
| ROICexc | 5.64% | ||
| ROICexgc | 34.34% | ||
| OM | 25.32% | ||
| PM (TTM) | 18.85% | ||
| GM | 60.15% | ||
| FCFM | 35.41% |
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%
ROICexgc growth 3Y-18.89%
ROICexgc 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-Score8
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 1.87 | ||
| Cap/Depr | 23.9% | ||
| Cap/Sales | 4.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.44% | ||
| Profit Quality | 187.9% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 5.68 |
F-Score8
WACC10.71%
ROIC/WACC0.49
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)7.14%
EPS 3Y-0.26%
EPS 5Y4.42%
EPS Q2Q%29.75%
EPS Next Y22.53%
EPS Next 2Y21.45%
EPS Next 3Y20.06%
EPS Next 5Y20.93%
Revenue 1Y (TTM)7.08%
Revenue growth 3Y8.81%
Revenue growth 5Y9.49%
Sales Q2Q%24.57%
Revenue Next Year16.58%
Revenue Next 2Y14.91%
Revenue Next 3Y12.84%
Revenue Next 5Y12.86%
EBIT growth 1Y17.06%
EBIT growth 3Y2.72%
EBIT growth 5Y2.76%
EBIT Next Year63.45%
EBIT Next 3Y24.53%
EBIT Next 5Y19.93%
FCF growth 1Y-0.31%
FCF growth 3Y9.29%
FCF growth 5Y9.56%
OCF growth 1Y-12.92%
OCF growth 3Y12.1%
OCF growth 5Y11.33%
ANALOG DEVICES INC / ADI FAQ
What is the fundamental rating for ADI stock?
ChartMill assigns a fundamental rating of 6 / 10 to ADI.
Can you provide the valuation status for ANALOG DEVICES INC?
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 6 / 10.
What is the financial health of ANALOG DEVICES INC (ADI) stock?
The financial health rating of ANALOG DEVICES INC (ADI) is 5 / 10.
How sustainable is the dividend of ANALOG DEVICES INC (ADI) stock?
The dividend rating of ANALOG DEVICES INC (ADI) is 6 / 10 and the dividend payout ratio is 96.76%.