281.29 USD
+4.03 (+1.45%)
281.29 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ADI. ADI was compared to 112 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! These ratings would make ADI suitable 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
With a decent Return On Assets value of 4.72%, ADI is doing good in the industry, outperforming 71.43% of the companies in the same industry.
ADI has a Return On Equity of 6.70%. This is in the better half of the industry: ADI outperforms 66.07% of its industry peers.
With a decent Return On Invested Capital value of 5.82%, ADI is doing good in the industry, outperforming 68.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ADI is significantly below the industry average of 10.79%.
The 3 year average ROIC (5.78%) for ADI is below the current ROIC(5.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 6.7% | ||
| ROIC | 5.82% |
ROA(3y)4.97%
ROA(5y)4.61%
ROE(3y)6.89%
ROE(5y)6.37%
ROIC(3y)5.78%
ROIC(5y)5.51%
1.3 Margins
ADI has a Profit Margin of 20.58%. This is amongst the best in the industry. ADI outperforms 83.93% of its industry peers.
ADI's Profit Margin has been stable in the last couple of years.
ADI has a better Operating Margin (27.25%) than 86.61% 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 better Gross Margin (61.47%) than 85.71% of its industry peers.
In the last couple of years the Gross Margin of ADI has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
ADI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.61 indicates that ADI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.61, ADI is in the better half of the industry, outperforming 63.39% of the companies in the same industry.
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.
The Debt to FCF ratio of ADI (2.01) is better than 67.86% 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.
Looking at the Debt to Equity ratio, with a value of 0.25, ADI is in line with its industry, outperforming 46.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 6.61 |
ROIC/WACC0.56
WACC10.34%
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 has a worse Current ratio (2.19) than 71.43% 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.
ADI has a Quick ratio of 1.68. This is in the lower half of the industry: ADI underperforms 67.86% of its industry peers.
| 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%.
The Revenue has been growing by 14.49% on average over the past years. This is quite good.
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%25.91%
3.2 Future
The Earnings Per Share is expected to grow by 20.64% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.20% on average over the next years. This is quite good.
EPS Next Y26.69%
EPS Next 2Y20.17%
EPS Next 3Y18.89%
EPS Next 5Y20.64%
Revenue Next Year17.49%
Revenue Next 2Y13.1%
Revenue Next 3Y12.32%
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
ADI is valuated quite expensively with a Price/Earnings ratio of 36.11.
70.54% of the companies in the same industry are more expensive than ADI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.46. ADI is valued slightly more expensive when compared to this.
ADI is valuated quite expensively with a Price/Forward Earnings ratio of 28.50.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 66.07% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ADI to the average of the S&P500 Index (36.10), we can say ADI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.11 | ||
| Fwd PE | 28.5 |
4.2 Price Multiples
66.07% 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 rather cheap when compared to the industry. ADI is cheaper than 80.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.34 | ||
| EV/EBITDA | 27.71 |
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 18.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.35
PEG (5Y)3.73
EPS Next 2Y20.17%
EPS Next 3Y18.89%
5. Dividend
5.1 Amount
ADI has a Yearly Dividend Yield of 1.45%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.21, ADI pays a better dividend. On top of this ADI pays more dividend than 84.82% of the companies listed in the same industry.
ADI's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
The dividend of ADI is nicely growing with an annual growth rate of 10.17%!
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
ADI pays out 84.88% 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.
DP84.88%
EPS Next 2Y20.17%
EPS Next 3Y18.89%
281.29
+4.03 (+1.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.65%
Inst Owner Change-0.79%
Ins Owners0.05%
Ins Owner Change-5.55%
Market Cap138.38B
Revenue(TTM)11.02B
Net Income(TTM)2.27B
Analysts79.51
Price Target274.03 (-2.58%)
Short Float %2.13%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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)0.99%
PT rev (3m)2.02%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)-0.78%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.11 | ||
| Fwd PE | 28.5 | ||
| P/S | 12.56 | ||
| P/FCF | 32.34 | ||
| P/OCF | 28.76 | ||
| P/B | 4.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.71 |
EPS(TTM)7.79
EY2.77%
EPS(NY)9.87
Fwd EY3.51%
FCF(TTM)8.7
FCFY3.09%
OCF(TTM)9.78
OCFY3.48%
SpS22.4
BVpS68.74
TBVpS-2.32
PEG (NY)1.35
PEG (5Y)3.73
Graham Number109.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 6.7% | ||
| ROCE | 6.71% | ||
| ROIC | 5.82% | ||
| ROICexc | 6.33% | ||
| ROICexgc | 39.97% | ||
| 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)5.78%
ROIC(5y)5.51%
ROICexc(3y)6.08%
ROICexc(5y)5.79%
ROICexgc(3y)38.77%
ROICexgc(5y)43.57%
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 | 6.61 |
F-Score8
WACC10.34%
ROIC/WACC0.56
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 Y26.69%
EPS Next 2Y20.17%
EPS Next 3Y18.89%
EPS Next 5Y20.64%
Revenue 1Y (TTM)16.89%
Revenue growth 3Y-2.84%
Revenue growth 5Y14.49%
Sales Q2Q%25.91%
Revenue Next Year17.49%
Revenue Next 2Y13.1%
Revenue Next 3Y12.32%
Revenue Next 5Y11.2%
EBIT growth 1Y45.04%
EBIT growth 3Y-6.89%
EBIT growth 5Y13.85%
EBIT Next Year47.89%
EBIT Next 3Y19.43%
EBIT Next 5Y19.62%
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%.