ANALOG DEVICES INC (ADI) Stock Fundamental Analysis
USA - NASDAQ:ADI - US0326541051 - Common Stock
240.36 USD
-6.01 (-2.44%)
240.52 USD
+0.16 (+0.07%)
Overall ADI gets a fundamental rating of 5 out of 10. We evaluated ADI 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
ADI had positive earnings in the past year.
In the past year ADI had a positive cash flow from operations.
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 Return On Assets of 4.06%. This is in the better half of the industry: ADI outperforms 66.07% of its industry peers.
ADI has a better Return On Equity (5.74%) than 63.39% of its industry peers.
ADI has a Return On Invested Capital of 5.21%. This is in the better half 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 10.98%.
| 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 82.14% of the companies in the same industry.
In the last couple of years the Profit Margin of ADI has declined.
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.
Looking at the Gross Margin, with a value of 60.15%, ADI belongs to the top 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
ADI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ADI remains at a similar level compared to 1 year ago.
ADI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ADI is higher compared to a year ago.
2.2 Solvency
ADI has an Altman-Z score of 5.95. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 5.95, ADI perfoms like the industry average, outperforming 59.82% 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.
ADI has a Debt to FCF ratio of 2.36. This is in the better half of the industry: ADI outperforms 67.86% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that ADI is not too dependend on debt financing.
The Debt to Equity ratio of ADI (0.25) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 5.95 |
ROIC/WACC0.45
WACC11.47%
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.
With a Current ratio value of 2.32, ADI is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
A Quick Ratio of 1.79 indicates that ADI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.79, ADI is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing slightly by 4.42% on average over the past years.
The Revenue has been growing slightly by 7.08% in the past year.
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.
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 Y22.56%
EPS Next 2Y21.9%
EPS Next 3Y20.11%
EPS Next 5Y20.93%
Revenue Next Year16.55%
Revenue Next 2Y14.88%
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
With a Price/Earnings ratio of 33.38, ADI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 72.32% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.57, ADI is valued a bit more expensive.
With a Price/Forward Earnings ratio of 25.35, ADI can be considered very expensive at the moment.
68.75% of the companies in the same industry are more expensive than ADI, based on the Price/Forward Earnings ratio.
ADI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.38 | ||
| Fwd PE | 25.35 |
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 67.86% 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 75.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.15 | ||
| EV/EBITDA | 26.8 |
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 20.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.48
PEG (5Y)7.56
EPS Next 2Y21.9%
EPS Next 3Y20.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.64%, ADI has a reasonable but not impressive dividend return.
ADI's Dividend Yield is rather good when compared to the industry average which is at 2.13. ADI pays more dividend than 86.61% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, ADI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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 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 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 2Y21.9%
EPS Next 3Y20.11%
240.36
-6.01 (-2.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.65%
Inst Owner Change0.21%
Ins Owners0.05%
Ins Owner Change-5.52%
Market Cap118.25B
Revenue(TTM)10.39B
Net Income(TTM)1.96B
Analysts79.5
Price Target271.33 (12.88%)
Short Float %1.7%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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%
PT rev (3m)6.95%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)10.72%
EPS NY rev (1m)0.96%
EPS NY rev (3m)4.1%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)6.79%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)2.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.38 | ||
| Fwd PE | 25.35 | ||
| P/S | 11.38 | ||
| P/FCF | 32.15 | ||
| P/OCF | 28.41 | ||
| P/B | 3.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.8 |
EPS(TTM)7.2
EY3%
EPS(NY)9.48
Fwd EY3.94%
FCF(TTM)7.48
FCFY3.11%
OCF(TTM)8.46
OCFY3.52%
SpS21.11
BVpS69.29
TBVpS-2.57
PEG (NY)1.48
PEG (5Y)7.56
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 | 5.95 |
F-Score8
WACC11.47%
ROIC/WACC0.45
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 Y22.56%
EPS Next 2Y21.9%
EPS Next 3Y20.11%
EPS Next 5Y20.93%
Revenue 1Y (TTM)7.08%
Revenue growth 3Y8.81%
Revenue growth 5Y9.49%
Sales Q2Q%24.57%
Revenue Next Year16.55%
Revenue Next 2Y14.88%
Revenue Next 3Y12.82%
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%