305.6 USD
-2.92 (-0.95%)
305.6 USD
0 (0%)
Overall ADI gets a fundamental rating of 6 out of 10. We evaluated ADI against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. While ADI has a great profitability rating, there are some minor concerns on its financial health. ADI is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes ADI very considerable 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.
- Each year in the past 5 years ADI has been profitable.
- ADI had a positive operating cash flow in each of the past 5 years.
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.
- ADI has a Return On Invested Capital of 6.01%. This is in the better half of the industry: ADI outperforms 68.14% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ADI is below the industry average of 10.75%.
- The last Return On Invested Capital (6.01%) for ADI is above the 3 year average (5.97%), which is a sign of increasing profitability.
| 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
- With an excellent Profit Margin value of 20.58%, ADI belongs to the best of the industry, outperforming 81.42% of the companies in the same industry.
- ADI's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 27.25%, ADI belongs to the top of the industry, outperforming 85.84% of the companies in the same industry.
- ADI's Operating Margin has been stable in the last couple of years.
- With an excellent Gross Margin value of 61.47%, ADI belongs to the best of the industry, outperforming 85.84% of the companies in the same industry.
- 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.
- Compared to 1 year ago, ADI has less shares outstanding
- Compared to 5 years ago, ADI has more shares outstanding
- Compared to 1 year ago, ADI has a worse debt to assets ratio.
2.2 Solvency
- ADI has an Altman-Z score of 7.23. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of ADI (7.23) 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 7.23 |
ROIC/WACC0.56
WACC10.74%
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.
- A Quick Ratio of 1.68 indicates that ADI should not have too much problems paying 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
- The Earnings Per Share has grown by an impressive 22.10% over the past year.
- 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.
- Looking at the last year, ADI shows a quite strong growth in Revenue. The Revenue has grown by 16.89% in the last year.
- 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 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 Year19.29%
Revenue Next 2Y13.71%
Revenue Next 3Y12.69%
Revenue Next 5Y11.46%
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.
- 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
- ADI is valuated quite expensively with a Price/Earnings ratio of 39.23.
- Based on the Price/Earnings ratio, ADI is valued a bit cheaper than the industry average as 73.45% of the companies are valued more expensively.
- ADI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 30.70, ADI can be considered very expensive at the moment.
- ADI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADI is cheaper than 70.80% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. ADI is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.23 | ||
| Fwd PE | 30.7 |
4.2 Price Multiples
- ADI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADI is cheaper than 68.14% of the companies in the same industry.
- ADI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADI is cheaper than 81.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.97 | ||
| EV/EBITDA | 30.65 |
4.3 Compensation for Growth
- The 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)1.41
PEG (5Y)4.06
EPS Next 2Y20.53%
EPS Next 3Y19.13%
5. Dividend
5.1 Amount
- ADI has a Yearly Dividend Yield of 1.31%.
- ADI's Dividend Yield is rather good when compared to the industry average which is at 0.51. 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
- On average, the dividend of ADI grows each year by 10.17%, 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)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%
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 4 / 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%.