277.56 USD
+0.83 (+0.3%)
277.56 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ADI. ADI was compared to 113 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 overvalued while it is showing excellent growth. This is an interesting combination. 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.
Each year in the past 5 years ADI has been profitable.
Each year in the past 5 years ADI had a positive operating cash flow.
1.2 Ratios
ADI's Return On Assets of 4.72% is fine compared to the rest of the industry. ADI outperforms 68.14% of its industry peers.
ADI has a Return On Equity of 6.70%. This is in the better half of the industry: ADI outperforms 62.83% of its industry peers.
ADI has a Return On Invested Capital of 6.01%. This is in the better half of the industry: ADI outperforms 68.14% of its industry peers.
ADI had an Average Return On Invested Capital over the past 3 years of 5.97%. This is below the industry average of 10.77%.
The last Return On Invested Capital (6.01%) for ADI is above the 3 year average (5.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 6.7% | ||
| ROIC | 6.01% |
ROA(3y)4.97%
ROA(5y)4.61%
ROE(3y)6.89%
ROE(5y)6.37%
ROIC(3y)5.97%
ROIC(5y)5.69%
1.3 Margins
ADI's Profit Margin of 20.58% is amongst the best of the industry. ADI outperforms 81.42% 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 85.84% 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 85.84% of its industry peers.
ADI's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADI is destroying value.
ADI has less shares outstanding than it did 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 6.59 indicates that ADI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.59, ADI is in the better half of the industry, outperforming 61.95% 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.
Looking at the Debt to FCF ratio, with a value of 2.01, ADI is in the better half of the industry, outperforming 69.03% 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 44.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 6.59 |
ROIC/WACC0.57
WACC10.58%
2.3 Liquidity
A Current Ratio of 2.19 indicates that ADI has no problem at all paying its short term obligations.
The Current ratio of ADI (2.19) is worse than 72.57% of its industry peers.
A Quick Ratio of 1.68 indicates that ADI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.68, ADI is not doing good in the industry: 67.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.10% over the past year.
Measured over the past years, ADI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.67% on average per year.
Looking at the last year, ADI shows a quite strong growth in Revenue. The Revenue has grown by 16.89% in the last year.
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%25.9%
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.
ADI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.20% yearly.
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.
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 35.63 indicates a quite expensive valuation of ADI.
Compared to the rest of the industry, the Price/Earnings ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 69.91% of the companies listed in the same industry.
ADI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.59.
A Price/Forward Earnings ratio of 28.12 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 63.72% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, ADI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.63 | ||
| Fwd PE | 28.12 |
4.2 Price Multiples
66.37% of the companies in the same industry are more expensive than ADI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ADI is valued cheaply inside the industry as 82.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.76 | ||
| EV/EBITDA | 27.61 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ADI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ADI's earnings are expected to grow with 18.89% in the coming years.
PEG (NY)1.33
PEG (5Y)3.68
EPS Next 2Y20.17%
EPS Next 3Y18.89%
5. Dividend
5.1 Amount
ADI has a Yearly Dividend Yield of 1.44%.
Compared to an average industry Dividend Yield of 0.56, ADI pays a better dividend. On top of this ADI pays more dividend than 84.96% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 1.88, ADI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
The dividend of ADI is nicely growing with an annual growth rate of 10.17%!
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)10.17%
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 2Y20.17%
EPS Next 3Y18.89%
277.56
+0.83 (+0.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.78%
Inst Owner Change-0.74%
Ins Owners0.05%
Ins Owner Change-7.82%
Market Cap135.91B
Revenue(TTM)11.02B
Net Income(TTM)2.27B
Analysts79.51
Price Target282.3 (1.71%)
Short Float %2.16%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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)3.52%
PT rev (3m)4.04%
EPS NQ rev (1m)5.79%
EPS NQ rev (3m)5.81%
EPS NY rev (1m)4.87%
EPS NY rev (3m)5.6%
Revenue NQ rev (1m)4.74%
Revenue NQ rev (3m)4.77%
Revenue NY rev (1m)3.73%
Revenue NY rev (3m)3.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.63 | ||
| Fwd PE | 28.12 | ||
| P/S | 12.33 | ||
| P/FCF | 31.76 | ||
| P/OCF | 28.24 | ||
| P/B | 4.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.61 |
EPS(TTM)7.79
EY2.81%
EPS(NY)9.87
Fwd EY3.56%
FCF(TTM)8.74
FCFY3.15%
OCF(TTM)9.83
OCFY3.54%
SpS22.51
BVpS69.06
TBVpS-2.33
PEG (NY)1.33
PEG (5Y)3.68
Graham Number110.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 6.7% | ||
| ROCE | 6.71% | ||
| ROIC | 6.01% | ||
| ROICexc | 6.54% | ||
| ROICexgc | 41.26% | ||
| 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)5.97%
ROIC(5y)5.69%
ROICexc(3y)6.28%
ROICexc(5y)5.97%
ROICexgc(3y)40.03%
ROICexgc(5y)44.98%
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 | 6.59 |
F-Score8
WACC10.58%
ROIC/WACC0.57
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%25.9%
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 Year56.16%
EBIT Next 3Y23.17%
EBIT Next 5Y20.25%
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%.