ANALOG DEVICES INC (ADI) Stock Fundamental Analysis
USA - NASDAQ:ADI - US0326541051 - Common Stock
229.38 USD
-4.23 (-1.81%)
229.96 USD
+0.58 (+0.25%)
We assign a fundamental rating of 5 out of 10 to ADI. ADI was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. ADI has an average financial health and profitability rating. ADI is not valued too expensively and it also shows 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.
In the past 5 years ADI has always been profitable.
ADI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.06%, ADI is in the better half of 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.
Looking at the Return On Invested Capital, with a value of 5.21%, ADI is in the better half of the industry, outperforming 65.18% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ADI is below the industry average of 11.04%.
| 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
The Profit Margin of ADI (18.85%) is better than 82.14% of its industry peers.
ADI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 25.32%, ADI belongs to the top of the industry, outperforming 83.93% of the companies in the same industry.
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.
ADI's Gross Margin has declined in the last couple of years.
| 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.
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.
The debt/assets ratio for ADI is higher compared to a year ago.
2.2 Solvency
ADI has an Altman-Z score of 5.68. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.68, ADI is in the better half of the industry, outperforming 61.61% 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.
Looking at the Debt to FCF ratio, with a value of 2.36, ADI is in the better half of the industry, outperforming 66.07% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that ADI is not too dependend on debt financing.
ADI's Debt to Equity ratio of 0.25 is in line compared to the rest of the industry. ADI outperforms 45.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 5.68 |
ROIC/WACC0.44
WACC11.73%
2.3 Liquidity
A Current Ratio of 2.32 indicates that ADI has no problem at all paying 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 65.18% of its industry peers.
A Quick Ratio of 1.79 indicates that ADI should not have too much problems paying its short term obligations.
ADI has a worse Quick ratio (1.79) than 62.50% 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.
The Revenue has been growing slightly by 7.08% in the past year.
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
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 Y22.62%
EPS Next 2Y21.93%
EPS Next 3Y20.11%
EPS Next 5Y20.93%
Revenue Next Year16.6%
Revenue Next 2Y14.91%
Revenue Next 3Y12.82%
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.
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 31.86, which means the current valuation is very expensive for ADI.
ADI's Price/Earnings ratio is a bit cheaper when compared to the industry. ADI is cheaper than 72.32% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.03. ADI is valued slightly more expensive when compared to this.
ADI is valuated rather expensively with a Price/Forward Earnings ratio of 24.18.
Based on the Price/Forward Earnings ratio, ADI is valued a bit cheaper than 70.54% 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 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.86 | ||
| Fwd PE | 24.18 |
4.2 Price Multiples
ADI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADI is cheaper than 67.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ADI is valued a bit cheaper than 79.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.68 | ||
| EV/EBITDA | 25.45 |
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)1.41
PEG (5Y)7.21
EPS Next 2Y21.93%
EPS Next 3Y20.11%
5. Dividend
5.1 Amount
ADI has a Yearly Dividend Yield of 1.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.11, ADI pays a better dividend. On top of this ADI pays more dividend than 86.61% of the companies listed in the same industry.
ADI's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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 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.
ADI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP96.76%
EPS Next 2Y21.93%
EPS Next 3Y20.11%
229.38
-4.23 (-1.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.65%
Inst Owner Change-0.7%
Ins Owners0.05%
Ins Owner Change-5.52%
Market Cap112.85B
Revenue(TTM)10.39B
Net Income(TTM)1.96B
Analysts79.5
Price Target272.69 (18.88%)
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)7.49%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)9.44%
EPS NY rev (1m)0.05%
EPS NY rev (3m)4.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.8%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)2.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.86 | ||
| Fwd PE | 24.18 | ||
| P/S | 10.86 | ||
| P/FCF | 30.68 | ||
| P/OCF | 27.11 | ||
| P/B | 3.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.45 |
EPS(TTM)7.2
EY3.14%
EPS(NY)9.48
Fwd EY4.13%
FCF(TTM)7.48
FCFY3.26%
OCF(TTM)8.46
OCFY3.69%
SpS21.11
BVpS69.29
TBVpS-2.57
PEG (NY)1.41
PEG (5Y)7.21
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 | 5.68 |
F-Score8
WACC11.73%
ROIC/WACC0.44
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 Y22.62%
EPS Next 2Y21.93%
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 Year16.6%
Revenue Next 2Y14.91%
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%
ANALOG DEVICES INC / ADI FAQ
What is the fundamental rating for ADI stock?
ChartMill assigns a fundamental rating of 5 / 10 to ADI.
Can you provide the valuation status for ANALOG DEVICES INC?
ChartMill assigns a valuation rating of 4 / 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%.