ANALOG DEVICES INC (ADI) Stock Fundamental Analysis
USA - NASDAQ:ADI - US0326541051 - Common Stock
244.1 USD
-0.81 (-0.33%)
244.1 USD
0 (0%)
Taking everything into account, ADI scores 5 out of 10 in our fundamental rating. ADI was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. ADI has an average financial health and profitability rating. ADI has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years ADI has been profitable.
In the past 5 years ADI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.06%, ADI is doing good in the industry, outperforming 66.07% of the companies in the same industry.
The Return On Equity of ADI (5.74%) is better than 63.39% of its industry peers.
ADI's Return On Invested Capital of 5.21% is fine compared to the rest of the industry. ADI outperforms 65.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADI is below the industry average of 10.87%.
| 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
ADI has a better Profit Margin (18.85%) than 83.04% of its industry peers.
ADI's Profit Margin has declined in the last couple of years.
ADI's Operating Margin of 25.32% is amongst the best of the industry. ADI outperforms 84.82% of its industry peers.
In the last couple of years the Operating Margin of ADI has declined.
ADI's Gross Margin of 60.15% is amongst the best of the industry. ADI outperforms 86.61% of its industry peers.
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
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 about the same amount of shares outstanding.
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
ADI has an Altman-Z score of 5.92. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ADI (5.92) is better than 65.18% of its industry peers.
ADI has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as ADI would need 2.36 years to pay back of all of its debts.
ADI's Debt to FCF ratio of 2.36 is fine compared to the rest of the industry. ADI outperforms 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 | 5.92 |
ROIC/WACC0.46
WACC11.26%
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.
ADI's Current ratio of 2.32 is on the low side compared to the rest of the industry. ADI is outperformed by 66.07% of its industry peers.
A Quick Ratio of 1.79 indicates that ADI should not have too much problems paying its short term obligations.
The Quick ratio of ADI (1.79) is worse than 65.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.14% over the past 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 small growth in Revenue. In the last year, the Revenue has grown by 7.08%.
Measured over the past years, ADI shows a quite strong growth in Revenue. The Revenue has been growing by 9.49% on average per year.
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
ADI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.93% yearly.
The Revenue is expected to grow by 12.86% on average over the next years. This is quite good.
EPS Next Y21.4%
EPS Next 2Y21.03%
EPS Next 3Y20.64%
EPS Next 5Y20.93%
Revenue Next Year16.31%
Revenue Next 2Y14.81%
Revenue Next 3Y12.82%
Revenue Next 5Y12.86%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.90, which means the current valuation is very expensive for ADI.
Based on the Price/Earnings ratio, ADI is valued a bit cheaper than the industry average as 63.39% of the companies are valued more expensively.
ADI is valuated rather expensively when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.12 indicates a quite expensive valuation of ADI.
ADI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADI is cheaper than 61.61% of the companies in the same industry.
ADI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.9 | ||
| Fwd PE | 26.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 63.39% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 73.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.65 | ||
| EV/EBITDA | 26.65 |
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.
A more expensive valuation may be justified as ADI's earnings are expected to grow with 20.64% in the coming years.
PEG (NY)1.58
PEG (5Y)7.68
EPS Next 2Y21.03%
EPS Next 3Y20.64%
5. Dividend
5.1 Amount
ADI has a Yearly Dividend Yield of 1.60%.
Compared to an average industry Dividend Yield of 2.31, 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 2.38, ADI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
The dividend of ADI is nicely growing with an annual growth rate of 11.42%!
ADI has been paying a dividend for at least 10 years, so it has 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
96.76% of the earnings are spent on dividend by ADI. This is not a sustainable payout ratio.
The dividend of ADI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP96.76%
EPS Next 2Y21.03%
EPS Next 3Y20.64%
244.1
-0.81 (-0.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners92.52%
Inst Owner Change-0.96%
Ins Owners0.05%
Ins Owner Change6.57%
Market Cap120.09B
Analysts79.5
Price Target271.33 (11.16%)
Short Float %1.53%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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)5.47%
PT rev (3m)10.2%
EPS NQ rev (1m)9.58%
EPS NQ rev (3m)11.68%
EPS NY rev (1m)3.11%
EPS NY rev (3m)7.05%
Revenue NQ rev (1m)6.8%
Revenue NQ rev (3m)7.25%
Revenue NY rev (1m)2.45%
Revenue NY rev (3m)2.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.9 | ||
| Fwd PE | 26.12 | ||
| P/S | 11.56 | ||
| P/FCF | 32.65 | ||
| P/OCF | 28.85 | ||
| P/B | 3.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.65 |
EPS(TTM)7.2
EY2.95%
EPS(NY)9.35
Fwd EY3.83%
FCF(TTM)7.48
FCFY3.06%
OCF(TTM)8.46
OCFY3.47%
SpS21.11
BVpS69.29
TBVpS-2.57
PEG (NY)1.58
PEG (5Y)7.68
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%
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-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 | 5.92 |
F-Score8
WACC11.26%
ROIC/WACC0.46
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 Y21.4%
EPS Next 2Y21.03%
EPS Next 3Y20.64%
EPS Next 5Y20.93%
Revenue 1Y (TTM)7.08%
Revenue growth 3Y8.81%
Revenue growth 5Y9.49%
Sales Q2Q%24.57%
Revenue Next Year16.31%
Revenue Next 2Y14.81%
Revenue Next 3Y12.82%
Revenue Next 5Y12.86%
EBIT growth 1Y17.06%
EBIT growth 3Y2.72%
EBIT growth 5Y2.76%
EBIT Next Year50.92%
EBIT Next 3Y21.96%
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%