ANALOG DEVICES INC (ADI)
US0326541051 - Common Stock
ADI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. ADI has an average financial health and profitability rating. ADI does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year ADI was profitable.
ADI had a positive operating cash flow in the past year.
Each year in the past 5 years ADI has 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 (4.38%) is comparable to the rest of the industry.
ADI has a Return On Equity (6.07%) which is comparable to the rest of the industry.
ADI has a Return On Invested Capital of 5.21%. This is comparable to the rest of the industry: ADI outperforms 58.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ADI is below the industry average of 10.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 6.07% | ||
| ROIC | 5.21% |
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
Looking at the Profit Margin, with a value of 20.45%, ADI is in the better half of the industry, outperforming 76.64% of the companies in the same industry.
In the last couple of years the Profit Margin of ADI has grown nicely.
ADI has a Operating Margin of 25.76%. This is amongst the best in the industry. ADI outperforms 85.05% of its industry peers.
In the last couple of years the Operating Margin of ADI has remained more or less at the same level.
With an excellent Gross Margin value of 59.84%, ADI belongs to the best of the industry, outperforming 81.31% of the companies in the same industry.
ADI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.76% | ||
| PM (TTM) | 20.45% | ||
| GM | 59.84% |
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.
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
ADI has an Altman-Z score of 5.76. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
ADI has a better Altman-Z score (5.76) than 63.55% of its industry peers.
ADI has a debt to FCF ratio of 2.63. This is a good value and a sign of high solvency as ADI would need 2.63 years to pay back of all of its debts.
The Debt to FCF ratio of ADI (2.63) is better than 61.68% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that ADI is not too dependend on debt financing.
ADI has a Debt to Equity ratio (0.20) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 5.76 |
ROIC/WACC0.42
WACC12.4%
2.3 Liquidity
ADI has a Current Ratio of 1.58. This is a normal value and indicates that ADI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ADI (1.58) is worse than 81.31% of its industry peers.
A Quick Ratio of 1.13 indicates that ADI should not have too much problems paying its short term obligations.
ADI has a Quick ratio of 1.13. This is in the lower half of the industry: ADI underperforms 79.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
ADI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.55%.
The Earnings Per Share has been growing by 11.12% on average over the past years. This is quite good.
The Revenue for ADI has decreased by -18.69% 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)-29.55%
EPS 3Y27.09%
EPS 5Y11.12%
EPS Q2Q%-50.53%
Revenue 1Y (TTM)-18.69%
Revenue growth 3Y29.99%
Revenue growth 5Y14.6%
Sales Q2Q%-33.83%
3.2 Future
ADI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.65% yearly.
The Revenue is expected to grow by 4.72% on average over the next years.
EPS Next Y-40.56%
EPS Next 2Y-13.38%
EPS Next 3Y-2%
EPS Next 5Y7.65%
Revenue Next Year-25.9%
Revenue Next 2Y-8.58%
Revenue Next 3Y-1.39%
Revenue Next 5Y4.72%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.73, which means the current valuation is very expensive for ADI.
ADI's Price/Earnings ratio is a bit cheaper when compared to the industry. ADI is cheaper than 68.22% of the companies in the same industry.
When comparing the Price/Earnings ratio of ADI to the average of the S&P500 Index (28.05), we can say ADI is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 31.00, the valuation of ADI can be described as expensive.
ADI's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ADI to the average of the S&P500 Index (20.07), we can say ADI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.73 | ||
| Fwd PE | 31 |
4.2 Price Multiples
67.29% of the companies in the same industry are more expensive than ADI, based on the Enterprise Value to EBITDA ratio.
ADI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ADI is cheaper than 73.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.95 | ||
| EV/EBITDA | 24.38 |
4.3 Compensation for Growth
The decent profitability rating of ADI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.76
EPS Next 2Y-13.38%
EPS Next 3Y-2%
5. Dividend
5.1 Amount
ADI has a Yearly Dividend Yield of 1.60%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.79, ADI pays a better dividend. On top of this ADI pays more dividend than 87.85% of the companies listed in the same industry.
ADI's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
The dividend of ADI is nicely growing with an annual growth rate of 11.91%!
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 Years19
Div Non Decr Years19
5.3 Sustainability
81.32% of the earnings are spent on dividend by ADI. This is not a sustainable payout ratio.
ADI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP81.32%
EPS Next 2Y-13.38%
EPS Next 3Y-2%
ANALOG DEVICES INC
NASDAQ:ADI (5/31/2024, 7:21:48 PM)
After market: 234.7 +0.21 (+0.09%)234.49
+4.49 (+1.95%)
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 Cap116.29B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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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)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.73 | ||
| Fwd PE | 31 | ||
| 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)2.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 6.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.76% | ||
| PM (TTM) | 20.45% | ||
| GM | 59.84% | ||
| 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 Turnover0.21
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 | 1.58 | ||
| Quick Ratio | 1.13 | ||
| 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)-29.55%
EPS 3Y27.09%
EPS 5Y
EPS Q2Q%
EPS Next Y-40.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-18.69%
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