ANALOG DEVICES INC (ADI) Stock Fundamental Analysis
USA - NASDAQ:ADI - US0326541051 - Common Stock
234.89 USD
-2.64 (-1.11%)
234.89 USD
0 (0%)
ADI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of ADI get a neutral evaluation. Nothing too spectacular is happening here. ADI has a correct valuation and a medium 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.
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's Return On Assets of 4.06% is fine compared to the rest of the industry. ADI outperforms 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.
ADI's Return On Invested Capital of 5.21% is fine compared to the rest of the industry. ADI outperforms 64.29% of its industry peers.
ADI had an Average Return On Invested Capital over the past 3 years of 6.33%. This 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
With an excellent Profit Margin value of 18.85%, ADI belongs to the best 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.
The Operating Margin of ADI (25.32%) is better than 83.93% of its industry peers.
ADI's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 60.15%, ADI belongs to the best of the industry, outperforming 86.61% of the companies in the same industry.
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.
The number of shares outstanding for ADI remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ADI has more shares outstanding
The debt/assets ratio for ADI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.76 indicates that ADI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.76, ADI is doing good in the industry, outperforming 62.50% of the companies in the same industry.
The Debt to FCF ratio of ADI is 2.36, which is a good value as it means it would take ADI, 2.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ADI (2.36) is better than 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.
ADI has a Debt to Equity ratio (0.25) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 5.76 |
ROIC/WACC0.49
WACC10.66%
2.3 Liquidity
ADI has a Current Ratio of 2.32. This indicates that ADI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ADI (2.32) is worse than 63.39% of its industry peers.
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.
ADI's Quick ratio of 1.79 is on the low side compared to the rest of the industry. ADI is outperformed by 60.71% of its industry peers.
| 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%.
The Earnings Per Share has been growing slightly by 4.42% on average over the past years.
ADI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.08%.
ADI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.49% yearly.
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
The Earnings Per Share is expected to grow by 20.93% on average over the next years. This is a very strong growth
ADI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.86% yearly.
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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 32.62, which means the current valuation is very expensive for ADI.
71.43% of the companies in the same industry are more expensive than ADI, based on the Price/Earnings ratio.
ADI is valuated rather expensively when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 24.96 indicates a rather expensive valuation of ADI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 66.96% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, ADI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.62 | ||
| Fwd PE | 24.96 |
4.2 Price Multiples
ADI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADI is cheaper than 66.07% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ADI is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.41 | ||
| EV/EBITDA | 25.87 |
4.3 Compensation for Growth
ADI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ADI has a very decent profitability rating, which 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)1.45
PEG (5Y)7.39
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.
Compared to an average industry Dividend Yield of 2.17, ADI pays a better dividend. On top of this ADI pays more dividend than 85.71% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, ADI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
The dividend of ADI is nicely growing with an annual growth rate of 11.42%!
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 Years21
Div Non Decr Years21
5.3 Sustainability
ADI pays out 96.76% 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.
DP96.76%
EPS Next 2Y21.45%
EPS Next 3Y20.06%
234.89
-2.64 (-1.11%)
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 Cap115.56B
Revenue(TTM)10.39B
Net Income(TTM)1.96B
Analysts79.5
Price Target272.69 (16.09%)
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 | 32.62 | ||
| Fwd PE | 24.96 | ||
| P/S | 11.13 | ||
| P/FCF | 31.41 | ||
| P/OCF | 27.76 | ||
| P/B | 3.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.87 |
EPS(TTM)7.2
EY3.07%
EPS(NY)9.41
Fwd EY4.01%
FCF(TTM)7.48
FCFY3.18%
OCF(TTM)8.46
OCFY3.6%
SpS21.11
BVpS69.29
TBVpS-2.57
PEG (NY)1.45
PEG (5Y)7.39
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 | 5.76 |
F-Score8
WACC10.66%
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%.