ANALOG DEVICES INC (ADI) Stock Fundamental Analysis
NASDAQ:ADI - Nasdaq - US0326541051 - Common Stock
ADI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 109 industry peers in the Semiconductors & Semiconductor Equipment industry. ADI has only an average score on both its financial health and profitability. ADI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ADI had positive earnings in the past year.
ADI had a positive operating cash flow in the past year.
ADI had positive earnings in each of the past 5 years.
ADI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ADI's Return On Assets of 3.39% is in line compared to the rest of the industry. ADI outperforms 56.48% of its industry peers.
With a Return On Equity value of 4.65%, ADI perfoms like the industry average, outperforming 53.70% of the companies in the same industry.
The Return On Invested Capital of ADI (4.10%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ADI is significantly below the industry average of 11.96%.
| 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
Looking at the Profit Margin, with a value of 17.35%, ADI is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
ADI's Profit Margin has declined in the last couple of years.
ADI has a Operating Margin of 21.96%. This is amongst the best in the industry. ADI outperforms 80.56% of its industry peers.
ADI's Operating Margin has declined in the last couple of years.
ADI has a Gross Margin of 57.08%. This is in the better half of the industry: ADI outperforms 78.70% of its industry peers.
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
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.
ADI has more shares outstanding than it did 5 years ago.
ADI has a worse debt/assets ratio than last year.
2.2 Solvency
ADI has an Altman-Z score of 5.75. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
ADI's Altman-Z score of 5.75 is fine compared to the rest of the industry. ADI outperforms 60.19% 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 72.22% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that ADI is not too dependend on debt financing.
The Debt to Equity ratio of ADI (0.20) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 5.75 |
ROIC/WACC0.28
WACC14.61%
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.
Looking at the Current ratio, with a value of 1.84, ADI is doing worse than 77.78% of the companies in the same industry.
ADI has a Quick Ratio of 1.35. 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 Quick ratio value of 1.35, ADI is not doing good in the industry: 76.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
ADI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.71%.
ADI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.42% yearly.
ADI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.39%.
The Revenue has been growing by 9.49% on average over the past years. This is quite good.
EPS 1Y (TTM)-36.71%
EPS 3Y-0.26%
EPS 5Y4.42%
EPS Q2Q%-16.92%
Revenue 1Y (TTM)-23.39%
Revenue growth 3Y8.81%
Revenue growth 5Y9.49%
Sales Q2Q%-10.06%
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 18.95% yearly.
The Revenue is expected to grow by 11.00% on average over the next years. This is quite good.
EPS Next Y12.48%
EPS Next 2Y18.72%
EPS Next 3Y20.47%
EPS Next 5Y18.95%
Revenue Next Year8.27%
Revenue Next 2Y10.91%
Revenue Next 3Y10.72%
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
With a Price/Earnings ratio of 35.18, ADI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/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/Earnings ratio of ADI to the average of the S&P500 Index (28.29), we can say ADI is valued slightly more expensively.
The Price/Forward Earnings ratio is 31.28, which means the current valuation is very expensive for ADI.
The rest of the industry has a similar Price/Forward Earnings ratio as ADI.
When comparing the Price/Forward Earnings ratio of ADI to the average of the S&P500 Index (24.44), we can say ADI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.18 | ||
| Fwd PE | 31.28 |
4.2 Price Multiples
65.74% of the companies in the same industry are more expensive than ADI, based on the Enterprise Value to EBITDA ratio.
ADI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ADI is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.68 | ||
| EV/EBITDA | 27.22 |
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 20.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.82
PEG (5Y)7.96
EPS Next 2Y18.72%
EPS Next 3Y20.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.71%, ADI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.28, ADI pays a better dividend. On top of this ADI pays more dividend than 87.04% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.28, ADI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
5.2 History
On average, the dividend of ADI grows each year by 11.42%, which is quite nice.
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 2Y18.72%
EPS Next 3Y20.47%
ANALOG DEVICES INC
NASDAQ:ADI (1/22/2025, 12:49:58 PM)
224.46
+3.01 (+1.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners92.64%
Inst Owner Change-0.18%
Ins Owners0.07%
Ins Owner Change-2.13%
Market Cap111.40B
Analysts77.78
Price Target256.95 (14.47%)
Short Float %1.93%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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)0.08%
PT rev (3m)-1.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.18 | ||
| Fwd PE | 31.28 | ||
| P/S | 11.82 | ||
| P/FCF | 35.68 | ||
| P/OCF | 28.92 | ||
| P/B | 3.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.22 |
EPS(TTM)6.38
EY2.84%
EPS(NY)7.18
Fwd EY3.2%
FCF(TTM)6.29
FCFY2.8%
OCF(TTM)7.76
OCFY3.46%
SpS18.99
BVpS70.88
TBVpS-2.66
PEG (NY)2.82
PEG (5Y)7.96
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 | 5.75 |
F-Score5
WACC14.61%
ROIC/WACC0.28
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)-36.71%
EPS 3Y-0.26%
EPS 5Y4.42%
EPS Q2Q%-16.92%
EPS Next Y12.48%
EPS Next 2Y18.72%
EPS Next 3Y20.47%
EPS Next 5Y18.95%
Revenue 1Y (TTM)-23.39%
Revenue growth 3Y8.81%
Revenue growth 5Y9.49%
Sales Q2Q%-10.06%
Revenue Next Year8.27%
Revenue Next 2Y10.91%
Revenue Next 3Y10.72%
Revenue Next 5Y11%
EBIT growth 1Y-48.04%
EBIT growth 3Y2.72%
EBIT growth 5Y2.76%
EBIT Next Year41.98%
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%