274.82 USD
-0.81 (-0.29%)
274.82 USD
0 (0%)
Taking everything into account, ADI scores 6 out of 10 in our fundamental rating. ADI was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. ADI has an excellent profitability rating, but there are some minor concerns on its financial health. ADI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, ADI could be worth investigating further for growth investing!.
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.
In the past 5 years ADI has always been profitable.
Each year in the past 5 years ADI had a positive operating cash flow.
1.2 Ratios
ADI has a better Return On Assets (4.72%) than 68.14% of its industry peers.
ADI's Return On Equity of 6.70% is fine compared to the rest of the industry. ADI outperforms 62.83% of its industry peers.
With a decent Return On Invested Capital value of 6.01%, ADI is doing good in the industry, outperforming 68.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ADI 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 has a Operating Margin of 27.25%. This is amongst the best in 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 has a Gross Margin of 61.47%. This is amongst the best in 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADI is destroying value.
The number of shares outstanding for ADI has been reduced compared to 1 year ago.
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
ADI has an Altman-Z score of 6.55. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ADI (6.55) is better than 61.95% of its industry peers.
The Debt to FCF ratio of ADI is 2.01, which is a good value as it means it would take ADI, 2.01 years of fcf income to pay off all of its debts.
ADI has a better Debt to FCF ratio (2.01) than 69.03% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that ADI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.25, ADI is in line with its industry, outperforming 44.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 6.55 |
ROIC/WACC0.57
WACC10.59%
2.3 Liquidity
ADI has a Current Ratio of 2.19. This indicates that ADI is financially healthy and has no problem in meeting 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.
ADI has a Quick Ratio of 1.68. 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 1.68, ADI is doing worse than 67.26% of the companies in the same industry.
| 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.
ADI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.67% yearly.
ADI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.89%.
Measured over the past years, ADI shows a quite strong growth in Revenue. The Revenue has been growing by 14.49% on average per year.
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 a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.64% yearly.
The Revenue is expected to grow by 11.20% on average over the next years. This is quite good.
EPS Next Y27.8%
EPS Next 2Y20.53%
EPS Next 3Y19.13%
EPS Next 5Y20.64%
Revenue Next Year18.97%
Revenue Next 2Y13.56%
Revenue Next 3Y12.69%
Revenue Next 5Y11.2%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 35.28, which means the current valuation is very expensive for ADI.
Compared to the rest of the industry, the Price/Earnings ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 69.91% of the companies listed in the same industry.
ADI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.77.
Based on the Price/Forward Earnings ratio of 27.60, the valuation of ADI can be described as expensive.
63.72% of the companies in the same industry are more expensive than ADI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.35. ADI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.28 | ||
| Fwd PE | 27.6 |
4.2 Price Multiples
66.37% of the companies in the same industry are more expensive than ADI, based on the Enterprise Value to EBITDA ratio.
81.42% 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 | 31.45 | ||
| EV/EBITDA | 27.43 |
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.
ADI's earnings are expected to grow with 19.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)3.65
EPS Next 2Y20.53%
EPS Next 3Y19.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.43%, 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 0.56. ADI pays more dividend than 84.96% of the companies in the same industry.
ADI's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
The dividend of ADI is nicely growing with an annual growth rate of 10.17%!
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)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%
274.82
-0.81 (-0.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.78%
Inst Owner Change-0.74%
Ins Owners0.05%
Ins Owner Change-7.82%
Market Cap134.57B
Revenue(TTM)11.02B
Net Income(TTM)2.27B
Analysts79.51
Price Target287.18 (4.5%)
Short Float %2.25%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend3.9
Dividend Growth(5Y)10.17%
DP84.88%
Div Incr Years21
Div Non Decr Years21
Ex-Date
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)4.8%
PT rev (3m)5.84%
EPS NQ rev (1m)6.22%
EPS NQ rev (3m)5.81%
EPS NY rev (1m)5.79%
EPS NY rev (3m)5.01%
Revenue NQ rev (1m)4.95%
Revenue NQ rev (3m)4.77%
Revenue NY rev (1m)5.04%
Revenue NY rev (3m)5.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.28 | ||
| Fwd PE | 27.6 | ||
| P/S | 12.21 | ||
| P/FCF | 31.45 | ||
| P/OCF | 27.96 | ||
| P/B | 3.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.43 |
EPS(TTM)7.79
EY2.83%
EPS(NY)9.96
Fwd EY3.62%
FCF(TTM)8.74
FCFY3.18%
OCF(TTM)9.83
OCFY3.58%
SpS22.51
BVpS69.06
TBVpS-2.33
PEG (NY)1.27
PEG (5Y)3.65
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 | 6.55 |
F-Score8
WACC10.59%
ROIC/WACC0.57
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 5Y20.64%
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 5Y11.2%
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.
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 7 / 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 84.88%.