ANALOG DEVICES INC (ADI)
US0326541051 - Common Stock
ADI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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.
In the past year ADI had a positive cash flow from operations.
Each year in the past 5 years ADI has been profitable.
Each year in the past 5 years ADI had a positive operating cash flow.
1.2 Ratios
ADI has a Return On Assets (3.39%) which is in line with its industry peers.
ADI has a Return On Equity (4.65%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 4.10%, ADI is doing good in the industry, outperforming 60.19% of the companies in the same industry.
ADI had an Average Return On Invested Capital over the past 3 years of 6.33%. This is below the industry average of 11.13%.
| 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
The Profit Margin of ADI (17.35%) is better than 75.00% of its industry peers.
ADI's Profit Margin has declined in the last couple of years.
The Operating Margin of ADI (21.96%) is better than 80.56% of its industry peers.
In the last couple of years the Operating Margin of ADI has declined.
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.
ADI's Gross Margin has declined in the last couple of years.
| 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.
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.
Compared to 1 year ago, ADI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.53 indicates that ADI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.53, ADI is doing good in the industry, outperforming 62.96% of the companies in the same industry.
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.
ADI has a better Debt to FCF ratio (2.43) than 72.22% of its industry peers.
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 | 5.53 |
ROIC/WACC0.28
WACC14.57%
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: 75.93% 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.
The Quick ratio of ADI (1.35) is worse than 75.93% 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 -36.71% 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.
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
Based on estimates for the next years, ADI will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.95% 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 11.00% on average per year.
EPS Next Y12.48%
EPS Next 2Y18.72%
EPS Next 3Y20.47%
EPS Next 5Y18.95%
Revenue Next Year8.27%
Revenue Next 2Y10.9%
Revenue Next 3Y10.7%
Revenue Next 5Y11%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 33.19 indicates a quite expensive valuation of ADI.
64.81% of the companies in the same industry are more expensive than ADI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.20, ADI is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 29.51, the valuation of ADI can be described as expensive.
ADI's Price/Forward Earnings is on the same level as the industry average.
ADI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.19 | ||
| Fwd PE | 29.51 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.67 | ||
| EV/EBITDA | 26.07 |
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)2.66
PEG (5Y)7.52
EPS Next 2Y18.72%
EPS Next 3Y20.47%
5. Dividend
5.1 Amount
ADI has a Yearly Dividend Yield of 1.77%. Purely for dividend investing, there may be better candidates out there.
ADI's Dividend Yield is rather good when compared to the industry average which is at 2.33. ADI pays more dividend than 87.96% 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 | 1.77% |
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 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 Years20
Div Non Decr Years20
5.3 Sustainability
109.80% 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.
DP109.8%
EPS Next 2Y18.72%
EPS Next 3Y20.47%
ANALOG DEVICES INC
NASDAQ:ADI (12/20/2024, 8:00:00 PM)
After market: 212.41 +0.63 (+0.3%)211.78
+4 (+1.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners92.64%
Inst Owner Change-0.58%
Ins Owners0.07%
Ins Owner Change-2.37%
Market Cap105.11B
Analysts77.22
Price Target256.74 (21.23%)
Short Float %1.49%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Dividend Growth(5Y)11.42%
DP109.8%
Div Incr Years20
Div Non Decr Years20
Ex-Date
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)-1.39%
PT rev (3m)-2.41%
EPS NQ rev (1m)-9.61%
EPS NQ rev (3m)-9.61%
EPS NY rev (1m)-5.83%
EPS NY rev (3m)-6.15%
Revenue NQ rev (1m)-3.77%
Revenue NQ rev (3m)-3.77%
Revenue NY rev (1m)-1.95%
Revenue NY rev (3m)-1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.19 | ||
| Fwd PE | 29.51 | ||
| P/S | 11.15 | ||
| P/FCF | 33.67 | ||
| P/OCF | 27.28 | ||
| P/B | 2.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.07 |
EPS(TTM)6.38
EY3.01%
EPS(NY)7.18
Fwd EY3.39%
FCF(TTM)6.29
FCFY2.97%
OCF(TTM)7.76
OCFY3.67%
SpS18.99
BVpS70.88
TBVpS-2.66
PEG (NY)2.66
PEG (5Y)7.52
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 | 5.53 |
F-Score5
WACC14.57%
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 2Y10.9%
Revenue Next 3Y10.7%
Revenue Next 5Y11%
EBIT growth 1Y-48.04%
EBIT growth 3Y2.72%
EBIT growth 5Y2.76%
EBIT Next Year33.13%
EBIT Next 3Y19.18%
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%