277.26 USD
-0.98 (-0.35%)
277.26 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. While ADI has a great profitability rating, there are some minor concerns on its financial health. ADI is growing strongly while it is still valued neutral. This is a good combination! With these ratings, ADI could be worth investigating further for growth investing!.
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.
Each year in the past 5 years ADI has been profitable.
In the past 5 years ADI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.72%, ADI is doing good in the industry, outperforming 71.43% of the companies in the same industry.
The Return On Equity of ADI (6.70%) is better than 66.07% of its industry peers.
The Return On Invested Capital of ADI (5.82%) is better than 68.75% of its industry peers.
ADI had an Average Return On Invested Capital over the past 3 years of 5.78%. This is significantly below the industry average of 10.79%.
The 3 year average ROIC (5.78%) for ADI is below the current ROIC(5.82%), indicating increased profibility in the last year.
| 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 Profit Margin of 20.58%. This is amongst the best in the industry. ADI outperforms 83.93% of its industry peers.
ADI's Profit Margin has been stable in the last couple of years.
ADI has a Operating Margin of 27.25%. This is amongst the best in the industry. ADI outperforms 86.61% of its industry peers.
ADI's Operating Margin has been stable in the last couple of years.
ADI's Gross Margin of 61.47% is amongst the best of the industry. ADI outperforms 85.71% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADI is destroying value.
Compared to 1 year ago, ADI has less shares outstanding
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
An Altman-Z score of 6.63 indicates that ADI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.63, ADI is doing good in the industry, outperforming 63.39% of the companies in the same industry.
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.
ADI's Debt to FCF ratio of 2.01 is fine compared to the rest of the industry. ADI outperforms 67.86% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that ADI is not too dependend on debt financing.
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 | 6.63 |
ROIC/WACC0.57
WACC10.25%
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.
ADI has a Current ratio of 2.19. This is in the lower half of the industry: ADI underperforms 71.43% of its industry peers.
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.
ADI has a Quick ratio of 1.68. This is in the lower half of the industry: ADI underperforms 67.86% of its industry peers.
| 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.
The Earnings Per Share has been growing by 9.67% on average over the past years. This is quite good.
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%25.91%
3.2 Future
Based on estimates for the next years, ADI will show a very strong growth in Earnings Per Share. The EPS will grow by 20.64% on average per year.
The Revenue is expected to grow by 11.20% on average over the next years. This is quite good.
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
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 35.59, ADI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 70.54% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ADI to the average of the S&P500 Index (26.41), we can say ADI is valued slightly more expensively.
ADI is valuated quite expensively with a Price/Forward Earnings ratio of 28.09.
Based on the Price/Forward Earnings ratio, ADI is valued a bit cheaper than the industry average as 66.07% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.40. ADI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.59 | ||
| Fwd PE | 28.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADI is valued a bit cheaper than the industry average as 66.96% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ADI is valued cheaply inside the industry as 80.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.88 | ||
| EV/EBITDA | 27.81 |
4.3 Compensation for Growth
ADI's 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.
ADI's earnings are expected to grow with 18.89% in the coming years. This may justify a more expensive valuation.
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 1.45%.
ADI's Dividend Yield is rather good when compared to the industry average which is at 2.22. 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.17%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
ADI pays out 84.88% of its income as dividend. 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%
277.26
-0.98 (-0.35%)
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 Cap136.40B
Revenue(TTM)11.02B
Net Income(TTM)2.27B
Analysts79.51
Price Target274.03 (-1.16%)
Short Float %2.13%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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)0.99%
PT rev (3m)2.02%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)-0.78%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.59 | ||
| Fwd PE | 28.09 | ||
| P/S | 12.38 | ||
| P/FCF | 31.88 | ||
| P/OCF | 28.34 | ||
| P/B | 4.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.81 |
EPS(TTM)7.79
EY2.81%
EPS(NY)9.87
Fwd EY3.56%
FCF(TTM)8.7
FCFY3.14%
OCF(TTM)9.78
OCFY3.53%
SpS22.4
BVpS68.74
TBVpS-2.32
PEG (NY)1.33
PEG (5Y)3.68
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 | 6.63 |
F-Score8
WACC10.25%
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%25.91%
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 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 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%.