ANALOG DEVICES INC (ADI) Stock Fundamental Analysis
USA - NASDAQ:ADI - US0326541051 - Common Stock
244.79 USD
-2.77 (-1.12%)
244.16 USD
-0.63 (-0.26%)
ADI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. ADI has an average financial health and profitability rating. ADI has a decent growth rate and is not valued too 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
Looking at the Return On Assets, with a value of 4.06%, ADI is in the better half of the industry, outperforming 66.07% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.74%, ADI is in the better half of the industry, outperforming 63.39% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.21%, ADI is in the better half of the industry, outperforming 65.18% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ADI is below the industry average of 10.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 5.74% | ||
| ROIC | 5.21% |
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
The Profit Margin of ADI (18.85%) is better than 82.14% of its industry peers.
ADI's Profit Margin has declined in the last couple of years.
ADI's Operating Margin of 25.32% is amongst the best of the industry. ADI outperforms 83.93% of its industry peers.
ADI's Operating Margin has declined in the last couple of years.
The Gross Margin of ADI (60.15%) is better than 86.61% of its industry peers.
ADI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.32% | ||
| PM (TTM) | 18.85% | ||
| GM | 60.15% |
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.
ADI has more shares outstanding than it did 5 years ago.
ADI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.91 indicates that ADI is not in any danger for bankruptcy at the moment.
ADI has a Altman-Z score of 5.91. This is in the better half of the industry: ADI outperforms 62.50% of its industry peers.
The Debt to FCF ratio of ADI is 2.36, which is a good value as it means it would take ADI, 2.36 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.36, ADI is in the better half of the industry, outperforming 66.96% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that ADI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.25, ADI is in line with its industry, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 5.91 |
ROIC/WACC0.46
WACC11.32%
2.3 Liquidity
ADI has a Current Ratio of 2.32. This indicates that ADI is financially healthy and has no problem in meeting its short term obligations.
ADI has a Current ratio of 2.32. This is in the lower half of the industry: ADI underperforms 66.07% of its industry peers.
A Quick Ratio of 1.79 indicates that ADI should not have too much problems paying its short term obligations.
The Quick ratio of ADI (1.79) is worse than 65.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
ADI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.14%.
Measured over the past 5 years, ADI shows a small growth in Earnings Per Share. The EPS has been growing by 4.42% on average per year.
Looking at the last year, ADI shows a small growth in Revenue. The Revenue has grown by 7.08% in the last year.
ADI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.49% yearly.
EPS 1Y (TTM)7.14%
EPS 3Y-0.26%
EPS 5Y4.42%
EPS Q2Q%29.75%
Revenue 1Y (TTM)7.08%
Revenue growth 3Y8.81%
Revenue growth 5Y9.49%
Sales Q2Q%24.57%
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 20.93% on average per year.
The Revenue is expected to grow by 12.86% on average over the next years. This is quite good.
EPS Next Y22.56%
EPS Next 2Y21.9%
EPS Next 3Y20.11%
EPS Next 5Y20.93%
Revenue Next Year16.31%
Revenue Next 2Y14.81%
Revenue Next 3Y12.82%
Revenue Next 5Y12.86%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 34.00, the valuation of ADI can be described as expensive.
Based on the Price/Earnings ratio, ADI is valued a bit cheaper than 65.18% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.67. ADI is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 25.82, ADI can be considered very expensive at the moment.
ADI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADI is cheaper than 66.96% of the companies in the same industry.
ADI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34 | ||
| Fwd PE | 25.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADI is valued a bit cheaper than the industry average as 65.18% of the companies are valued more expensively.
ADI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ADI is cheaper than 75.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.74 | ||
| EV/EBITDA | 26.64 |
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 20.11% in the coming years.
PEG (NY)1.51
PEG (5Y)7.7
EPS Next 2Y21.9%
EPS Next 3Y20.11%
5. Dividend
5.1 Amount
ADI has a Yearly Dividend Yield of 1.59%.
ADI's Dividend Yield is rather good when compared to the industry average which is at 2.20. ADI pays more dividend than 86.61% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, ADI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
The dividend of ADI is nicely growing with an annual growth rate of 11.42%!
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)11.42%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
96.76% of the earnings are spent on dividend by ADI. This is not a sustainable payout ratio.
ADI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP96.76%
EPS Next 2Y21.9%
EPS Next 3Y20.11%
244.79
-2.77 (-1.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.65%
Inst Owner Change-0.96%
Ins Owners0.05%
Ins Owner Change-0.62%
Market Cap120.43B
Analysts79.5
Price Target271.33 (10.84%)
Short Float %1.7%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend3.62
Dividend Growth(5Y)11.42%
DP96.76%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.79%
Min EPS beat(2)3.92%
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)7
Avg EPS beat(8)3.83%
EPS beat(12)10
Avg EPS beat(12)3.3%
EPS beat(16)14
Avg EPS beat(16)4%
Revenue beat(2)2
Avg Revenue beat(2)3.55%
Min Revenue beat(2)2.87%
Max Revenue beat(2)4.23%
Revenue beat(4)4
Avg Revenue beat(4)2.3%
Min Revenue beat(4)0.46%
Max Revenue beat(4)4.23%
Revenue beat(8)6
Avg Revenue beat(8)1.3%
Revenue beat(12)9
Avg Revenue beat(12)1.14%
Revenue beat(16)13
Avg Revenue beat(16)1.27%
PT rev (1m)1.01%
PT rev (3m)9.63%
EPS NQ rev (1m)0.91%
EPS NQ rev (3m)11.68%
EPS NY rev (1m)0.96%
EPS NY rev (3m)4.33%
Revenue NQ rev (1m)0.7%
Revenue NQ rev (3m)7.25%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)2.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34 | ||
| Fwd PE | 25.82 | ||
| P/S | 11.59 | ||
| P/FCF | 32.74 | ||
| P/OCF | 28.93 | ||
| P/B | 3.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.64 |
EPS(TTM)7.2
EY2.94%
EPS(NY)9.48
Fwd EY3.87%
FCF(TTM)7.48
FCFY3.05%
OCF(TTM)8.46
OCFY3.46%
SpS21.11
BVpS69.29
TBVpS-2.57
PEG (NY)1.51
PEG (5Y)7.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 5.74% | ||
| ROCE | 5.82% | ||
| ROIC | 5.21% | ||
| ROICexc | 5.64% | ||
| ROICexgc | 34.34% | ||
| OM | 25.32% | ||
| PM (TTM) | 18.85% | ||
| GM | 60.15% | ||
| FCFM | 35.41% |
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-Score8
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 1.87 | ||
| Cap/Depr | 23.9% | ||
| Cap/Sales | 4.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.44% | ||
| Profit Quality | 187.9% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 5.91 |
F-Score8
WACC11.32%
ROIC/WACC0.46
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)7.14%
EPS 3Y-0.26%
EPS 5Y4.42%
EPS Q2Q%29.75%
EPS Next Y22.56%
EPS Next 2Y21.9%
EPS Next 3Y20.11%
EPS Next 5Y20.93%
Revenue 1Y (TTM)7.08%
Revenue growth 3Y8.81%
Revenue growth 5Y9.49%
Sales Q2Q%24.57%
Revenue Next Year16.31%
Revenue Next 2Y14.81%
Revenue Next 3Y12.82%
Revenue Next 5Y12.86%
EBIT growth 1Y17.06%
EBIT growth 3Y2.72%
EBIT growth 5Y2.76%
EBIT Next Year63.45%
EBIT Next 3Y24.53%
EBIT Next 5Y19.93%
FCF growth 1Y-0.31%
FCF growth 3Y9.29%
FCF growth 5Y9.56%
OCF growth 1Y-12.92%
OCF growth 3Y12.1%
OCF growth 5Y11.33%