ANALOG DEVICES INC (ADI)
US0326541051 - Common Stock
Overall ADI gets a fundamental rating of 5 out of 10. We evaluated ADI against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. ADI has only an average score on both its financial health and profitability. 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
The Return On Assets of ADI (3.41%) is comparable to the rest of the industry.
ADI has a Return On Equity (4.70%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 4.36%, ADI is doing good in the industry, outperforming 62.96% of the companies in the same industry.
ADI had an Average Return On Invested Capital over the past 3 years of 6.02%. This is significantly below the industry average of 11.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 4.7% | ||
| ROIC | 4.36% |
ROA(3y)4.97%
ROA(5y)5.39%
ROE(3y)6.84%
ROE(5y)8.46%
ROIC(3y)6.02%
ROIC(5y)6.63%
1.3 Margins
ADI's Profit Margin of 17.07% is fine compared to the rest of the industry. ADI outperforms 73.15% of its industry peers.
In the last couple of years the Profit Margin of ADI has grown nicely.
With an excellent Operating Margin value of 23.16%, ADI belongs to the best of the industry, outperforming 80.56% of the companies in the same industry.
In the last couple of years the Operating Margin of ADI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 57.85%, ADI belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
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 | 23.16% | ||
| PM (TTM) | 17.07% | ||
| GM | 57.85% |
OM growth 3Y4.93%
OM growth 5Y0.55%
PM growth 3Y7.32%
PM growth 5Y2.24%
GM growth 3Y-0.94%
GM growth 5Y-1.28%
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.
Compared to 5 years ago, ADI has more shares outstanding
Compared to 1 year ago, ADI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.45 indicates that ADI is not in any danger for bankruptcy at the moment.
The Altman-Z score of ADI (5.45) is better than 64.81% of its industry peers.
ADI has a debt to FCF ratio of 2.75. This is a good value and a sign of high solvency as ADI would need 2.75 years to pay back of all of its debts.
ADI has a Debt to FCF ratio of 2.75. This is in the better half of the industry: ADI outperforms 68.52% of its industry peers.
ADI has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
ADI has a Debt to Equity ratio (0.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 5.45 |
ROIC/WACC0.3
WACC14.6%
2.3 Liquidity
A Current Ratio of 1.69 indicates that ADI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.69, ADI is doing worse than 76.85% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that ADI should not have too much problems paying its short term obligations.
ADI has a Quick ratio of 1.24. This is in the lower half of the industry: ADI underperforms 79.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
ADI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.78%.
ADI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.12% yearly.
The Revenue for ADI has decreased by -24.43% in the past year. This is quite bad
The Revenue has been growing by 14.60% on average over the past years. This is quite good.
EPS 1Y (TTM)-37.78%
EPS 3Y27.09%
EPS 5Y11.12%
EPS Q2Q%-36.55%
Revenue 1Y (TTM)-24.43%
Revenue growth 3Y29.99%
Revenue growth 5Y14.6%
Sales Q2Q%-24.84%
3.2 Future
The Earnings Per Share is expected to grow by 8.84% on average over the next years. This is quite good.
ADI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.21% yearly.
EPS Next Y-36.45%
EPS Next 2Y-13.05%
EPS Next 3Y-1.91%
EPS Next 5Y8.84%
Revenue Next Year-23.63%
Revenue Next 2Y-8.17%
Revenue Next 3Y-1.78%
Revenue Next 5Y4.21%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.84, ADI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ADI is valued a bit cheaper than the industry average as 65.74% of the companies are valued more expensively.
ADI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 28.08, which means the current valuation is very expensive for ADI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADI is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.82. ADI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.84 | ||
| Fwd PE | 28.08 |
4.2 Price Multiples
65.74% 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 a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.04 | ||
| EV/EBITDA | 25.38 |
4.3 Compensation for Growth
ADI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.86
EPS Next 2Y-13.05%
EPS Next 3Y-1.91%
5. Dividend
5.1 Amount
ADI has a Yearly Dividend Yield of 1.73%.
Compared to an average industry Dividend Yield of 2.37, ADI pays a better dividend. On top of this ADI pays more dividend than 87.04% of the companies listed in the same industry.
ADI's Dividend Yield is slightly below the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
On average, the dividend of ADI grows each year by 11.91%, which is quite nice.
ADI has paid a dividend for at least 10 years, which is a reliable track record.
ADI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.91%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
ADI pays out 106.71% of its income as dividend. This is not a sustainable payout ratio.
ADI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP106.71%
EPS Next 2Y-13.05%
EPS Next 3Y-1.91%
ANALOG DEVICES INC
NASDAQ:ADI (11/21/2024, 8:10:48 PM)
Premarket: 213.96 0 (0%)213.96
+2.95 (+1.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap106.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.84 | ||
| Fwd PE | 28.08 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 4.7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.16% | ||
| PM (TTM) | 17.07% | ||
| GM | 57.85% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-37.78%
EPS 3Y27.09%
EPS 5Y
EPS Q2Q%
EPS Next Y-36.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-24.43%
Revenue growth 3Y29.99%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y