ANALOG DEVICES INC (ADI) Stock Fundamental Analysis
NASDAQ:ADI - Nasdaq - US0326541051 - Common Stock - Currency: USD
Overall ADI gets a fundamental rating of 5 out of 10. We evaluated ADI against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. ADI has only an average score on both its financial health and profitability. ADI is quite expensive at the moment. It does show a decent growth rate.
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.
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
ADI has a Return On Assets (3.87%) which is comparable to the rest of the industry.
ADI has a Return On Equity (5.23%) which is comparable to the rest of the industry.
ADI has a better Return On Invested Capital (4.64%) than 62.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ADI is below the industry average of 10.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 5.23% | ||
| ROIC | 4.64% |
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
Looking at the Profit Margin, with a value of 18.65%, ADI is in the better half of the industry, outperforming 78.18% of the companies in the same industry.
ADI's Profit Margin has declined in the last couple of years.
ADI has a Operating Margin of 23.53%. This is amongst the best in the industry. ADI outperforms 83.64% of its industry peers.
ADI's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 58.76%, ADI belongs to the best of the industry, outperforming 83.64% of the companies in the same industry.
ADI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.53% | ||
| PM (TTM) | 18.65% | ||
| GM | 58.76% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADI is destroying value.
The number of shares outstanding for ADI remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ADI has more shares outstanding
ADI has a worse debt/assets ratio than last year.
2.2 Solvency
ADI has an Altman-Z score of 6.67. 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 6.67, ADI is in the better half of the industry, outperforming 67.27% of the companies in the same industry.
The Debt to FCF ratio of ADI is 2.19, which is a good value as it means it would take ADI, 2.19 years of fcf income to pay off all of its debts.
ADI has a Debt to FCF ratio of 2.19. This is in the better half of the industry: ADI outperforms 67.27% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that ADI is not too dependend on debt financing.
ADI's Debt to Equity ratio of 0.21 is in line compared to the rest of the industry. ADI outperforms 47.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.19 | ||
| Altman-Z | 6.67 |
ROIC/WACC0.41
WACC11.42%
2.3 Liquidity
ADI has a Current Ratio of 2.08. This indicates that ADI is financially healthy and has no problem in meeting its short term obligations.
ADI has a worse Current ratio (2.08) than 72.73% of its industry peers.
ADI has a Quick Ratio of 1.51. This is a normal value and indicates that ADI is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ADI (1.51) is worse than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
ADI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.80%.
ADI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.42% yearly.
The Revenue has decreased by -6.17% 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)-11.8%
EPS 3Y-0.26%
EPS 5Y4.42%
EPS Q2Q%32.14%
Revenue 1Y (TTM)-6.17%
Revenue growth 3Y8.81%
Revenue growth 5Y9.49%
Sales Q2Q%22.28%
3.2 Future
ADI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.79% yearly.
Based on estimates for the next years, ADI will show a quite strong growth in Revenue. The Revenue will grow by 11.94% on average per year.
EPS Next Y17.47%
EPS Next 2Y18.1%
EPS Next 3Y18.5%
EPS Next 5Y19.79%
Revenue Next Year13.18%
Revenue Next 2Y12.02%
Revenue Next 3Y11.13%
Revenue Next 5Y11.94%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 35.93 indicates a quite expensive valuation of ADI.
Based on the Price/Earnings ratio, ADI is valued a bit cheaper than 61.82% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.29. ADI is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 27.17, ADI can be considered very expensive at the moment.
ADI's Price/Forward Earnings ratio is in line with the industry average.
ADI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.93 | ||
| Fwd PE | 27.17 |
4.2 Price Multiples
ADI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADI is cheaper than 61.82% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ADI is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.43 | ||
| EV/EBITDA | 28.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ADI's earnings are expected to grow with 18.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.06
PEG (5Y)8.13
EPS Next 2Y18.1%
EPS Next 3Y18.5%
5. Dividend
5.1 Amount
ADI has a Yearly Dividend Yield of 1.61%.
ADI's Dividend Yield is rather good when compared to the industry average which is at 2.18. ADI pays more dividend than 86.36% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.37, ADI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
On average, the dividend of ADI grows each year by 11.42%, which is quite nice.
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)11.42%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
101.60% 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.
DP101.6%
EPS Next 2Y18.1%
EPS Next 3Y18.5%
241.81
-3.87 (-1.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners92.3%
Inst Owner Change-0.02%
Ins Owners0.05%
Ins Owner Change8.42%
Market Cap120.00B
Analysts78.89
Price Target247.49 (2.35%)
Short Float %1.52%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend3.62
Dividend Growth(5Y)11.42%
DP101.6%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.14%
Min EPS beat(2)4.61%
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)6
Avg EPS beat(8)3.06%
EPS beat(12)10
Avg EPS beat(12)3.2%
EPS beat(16)14
Avg EPS beat(16)4.08%
Revenue beat(2)2
Avg Revenue beat(2)2.94%
Min Revenue beat(2)1.64%
Max Revenue beat(2)4.23%
Revenue beat(4)4
Avg Revenue beat(4)1.75%
Min Revenue beat(4)0.46%
Max Revenue beat(4)4.23%
Revenue beat(8)5
Avg Revenue beat(8)0.75%
Revenue beat(12)9
Avg Revenue beat(12)0.96%
Revenue beat(16)13
Avg Revenue beat(16)1.19%
PT rev (1m)2.57%
PT rev (3m)-6.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.14%
EPS NY rev (1m)3.59%
EPS NY rev (3m)3.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.98%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.93 | ||
| Fwd PE | 27.17 | ||
| P/S | 12.22 | ||
| P/FCF | 36.43 | ||
| P/OCF | 31.15 | ||
| P/B | 3.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.83 |
EPS(TTM)6.73
EY2.78%
EPS(NY)8.9
Fwd EY3.68%
FCF(TTM)6.64
FCFY2.74%
OCF(TTM)7.76
OCFY3.21%
SpS19.79
BVpS70.55
TBVpS-1.45
PEG (NY)2.06
PEG (5Y)8.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 5.23% | ||
| ROCE | 5.17% | ||
| ROIC | 4.64% | ||
| ROICexc | 4.89% | ||
| ROICexgc | 29.54% | ||
| OM | 23.53% | ||
| PM (TTM) | 18.65% | ||
| GM | 58.76% | ||
| FCFM | 33.54% |
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%
ROICexcg growth 3Y-18.89%
ROICexcg 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-Score5
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.19 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 27.02% | ||
| Cap/Sales | 5.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.99% | ||
| Profit Quality | 179.84% | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 6.67 |
F-Score5
WACC11.42%
ROIC/WACC0.41
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)-11.8%
EPS 3Y-0.26%
EPS 5Y4.42%
EPS Q2Q%32.14%
EPS Next Y17.47%
EPS Next 2Y18.1%
EPS Next 3Y18.5%
EPS Next 5Y19.79%
Revenue 1Y (TTM)-6.17%
Revenue growth 3Y8.81%
Revenue growth 5Y9.49%
Sales Q2Q%22.28%
Revenue Next Year13.18%
Revenue Next 2Y12.02%
Revenue Next 3Y11.13%
Revenue Next 5Y11.94%
EBIT growth 1Y-14.28%
EBIT growth 3Y2.72%
EBIT growth 5Y2.76%
EBIT Next Year48.04%
EBIT Next 3Y21.05%
EBIT Next 5Y18.89%
FCF growth 1Y-16.73%
FCF growth 3Y9.29%
FCF growth 5Y9.56%
OCF growth 1Y-21.15%
OCF growth 3Y12.1%
OCF growth 5Y11.33%