265.34 USD
+7.42 (+2.88%)
265.34 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. ADI has an excellent profitability rating, but 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 could make ADI a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year ADI was profitable.
ADI had a positive operating cash flow in the past year.
ADI had positive earnings in each of the past 5 years.
ADI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ADI's Return On Assets of 4.72% is fine compared to the rest of the industry. ADI outperforms 71.43% of its industry peers.
The Return On Equity of ADI (6.70%) is better than 66.07% of its industry peers.
ADI's Return On Invested Capital of 5.82% is fine compared to the rest of the industry. ADI outperforms 68.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADI is below the industry average of 10.75%.
The last Return On Invested Capital (5.82%) for ADI is above the 3 year average (5.78%), which is a sign of increasing profitability.
| 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 better Profit Margin (20.58%) than 83.93% of its industry peers.
In the last couple of years the Profit Margin of ADI has remained more or less at the same level.
The Operating Margin of ADI (27.25%) is better 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 Gross Margin of 61.47%. This is amongst the best in the industry. ADI outperforms 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
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 less 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
An Altman-Z score of 6.21 indicates that ADI is not in any danger for bankruptcy at the moment.
ADI has a better Altman-Z score (6.21) than 63.39% of its industry peers.
The Debt to FCF ratio of ADI is 2.01, which is a good value as it means it would take ADI, 2.01 years of fcf income to pay off 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.
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 | 2.01 | ||
| Altman-Z | 6.21 |
ROIC/WACC0.55
WACC10.56%
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.
Looking at the Current ratio, with a value of 2.19, ADI is doing worse than 71.43% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.68, ADI is doing worse than 67.86% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 9.67% on average over the past years. This is quite good.
ADI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.89%.
ADI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.49% yearly.
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
ADI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.64% yearly.
The Revenue is expected to grow by 11.20% on average over the next years. This is quite good.
EPS Next Y20.8%
EPS Next 2Y19.05%
EPS Next 3Y18.05%
EPS Next 5Y20.64%
Revenue Next Year13.28%
Revenue Next 2Y11.02%
Revenue Next 3Y10.64%
Revenue Next 5Y11.2%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 34.06 indicates a quite expensive valuation of ADI.
Based on the Price/Earnings ratio, ADI is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
ADI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.15.
The Price/Forward Earnings ratio is 28.20, which means the current valuation is very expensive for ADI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 62.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.12. ADI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.06 | ||
| Fwd PE | 28.2 |
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 | 30.51 | ||
| EV/EBITDA | 25.81 |
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.
A more expensive valuation may be justified as ADI's earnings are expected to grow with 18.05% in the coming years.
PEG (NY)1.64
PEG (5Y)3.52
EPS Next 2Y19.05%
EPS Next 3Y18.05%
5. Dividend
5.1 Amount
ADI has a Yearly Dividend Yield of 1.54%.
ADI's Dividend Yield is rather good when compared to the industry average which is at 2.33. ADI pays more dividend than 84.82% of the companies in the same industry.
ADI's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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
84.88% 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.
DP84.88%
EPS Next 2Y19.05%
EPS Next 3Y18.05%
265.34
+7.42 (+2.88%)
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 Cap130.54B
Revenue(TTM)11.02B
Net Income(TTM)2.27B
Analysts79.5
Price Target274.03 (3.28%)
Short Float %1.91%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend3.62
Dividend Growth(5Y)11.42%
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)-0.31%
EPS NQ rev (3m)9.44%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.94%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.06 | ||
| Fwd PE | 28.2 | ||
| P/S | 11.85 | ||
| P/FCF | 30.51 | ||
| P/OCF | 27.13 | ||
| P/B | 3.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.81 |
EPS(TTM)7.79
EY2.94%
EPS(NY)9.41
Fwd EY3.55%
FCF(TTM)8.7
FCFY3.28%
OCF(TTM)9.78
OCFY3.69%
SpS22.4
BVpS68.74
TBVpS-2.32
PEG (NY)1.64
PEG (5Y)3.52
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 | 6.21 |
F-Score8
WACC10.56%
ROIC/WACC0.55
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 Y20.8%
EPS Next 2Y19.05%
EPS Next 3Y18.05%
EPS Next 5Y20.64%
Revenue 1Y (TTM)16.89%
Revenue growth 3Y-2.84%
Revenue growth 5Y14.49%
Sales Q2Q%25.91%
Revenue Next Year13.28%
Revenue Next 2Y11.02%
Revenue Next 3Y10.64%
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 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 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%.