ANALOG DEVICES INC (ADI) Stock Fundamental Analysis
USA - NASDAQ:ADI - US0326541051 - Common Stock
234.13 USD
+1.23 (+0.53%)
234.13 USD
0 (0%)
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 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
ADI had positive earnings in the past year.
In the past year ADI had a positive cash flow from operations.
ADI had positive earnings in each of the past 5 years.
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 4.06%, ADI is doing good in the industry, outperforming 66.07% of the companies in the same industry.
ADI has a better Return On Equity (5.74%) than 63.39% of its industry peers.
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 11.04%.
| 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
With an excellent Profit Margin value of 18.85%, ADI belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
ADI's Profit Margin has declined in the last couple of years.
The Operating Margin of ADI (25.32%) is better than 83.93% of its industry peers.
In the last couple of years the Operating Margin of ADI has declined.
With an excellent Gross Margin value of 60.15%, ADI belongs to the best of the industry, outperforming 86.61% of the companies in the same industry.
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.
The number of shares outstanding for ADI has been increased compared to 5 years ago.
Compared to 1 year ago, ADI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.69 indicates that ADI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.69, ADI is doing good in the industry, outperforming 61.61% of the companies in the same industry.
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.
ADI's Debt to FCF ratio of 2.36 is fine compared to the rest of the industry. ADI outperforms 66.96% of its industry peers.
ADI has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
ADI's Debt to Equity ratio of 0.25 is in line compared to the rest of the industry. ADI outperforms 45.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 5.69 |
ROIC/WACC0.45
WACC11.71%
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.
Looking at the Current ratio, with a value of 2.32, ADI is doing worse than 64.29% of the companies in the same industry.
A Quick Ratio of 1.79 indicates that ADI should not have too much problems paying its short term obligations.
ADI's Quick ratio of 1.79 is on the low side compared to the rest of the industry. ADI is outperformed by 61.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.14% over the past year.
ADI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.42% yearly.
Looking at the last year, ADI shows a small growth in Revenue. The Revenue has grown by 7.08% in the last year.
The Revenue has been growing by 9.49% on average over the past years. This is quite good.
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
ADI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.93% yearly.
Based on estimates for the next years, ADI will show a quite strong growth in Revenue. The Revenue will grow by 12.86% on average per year.
EPS Next Y22.62%
EPS Next 2Y21.93%
EPS Next 3Y20.11%
EPS Next 5Y20.93%
Revenue Next Year16.6%
Revenue Next 2Y14.91%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 32.52 indicates a quite expensive valuation of ADI.
Based on the Price/Earnings ratio, ADI is valued a bit cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of ADI to the average of the S&P500 Index (26.11), we can say ADI is valued slightly more expensively.
With a Price/Forward Earnings ratio of 24.68, ADI is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio of ADI to the average of the S&P500 Index (22.55), we can say ADI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.52 | ||
| Fwd PE | 24.68 |
4.2 Price Multiples
ADI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADI is cheaper than 67.86% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 77.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.31 | ||
| EV/EBITDA | 25.51 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ADI 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)1.44
PEG (5Y)7.36
EPS Next 2Y21.93%
EPS Next 3Y20.11%
5. Dividend
5.1 Amount
ADI has a Yearly Dividend Yield of 1.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.14, ADI pays a better dividend. On top of this ADI pays more dividend than 86.61% of the companies listed 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 | 1.7% |
5.2 History
The dividend of ADI is nicely growing with an annual growth rate of 11.42%!
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
ADI pays out 96.76% 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.
DP96.76%
EPS Next 2Y21.93%
EPS Next 3Y20.11%
234.13
+1.23 (+0.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.65%
Inst Owner Change-0.7%
Ins Owners0.05%
Ins Owner Change-5.52%
Market Cap115.18B
Revenue(TTM)10.39B
Net Income(TTM)1.96B
Analysts79.5
Price Target272.69 (16.47%)
Short Float %1.49%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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)0.5%
PT rev (3m)7.49%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)9.44%
EPS NY rev (1m)0.05%
EPS NY rev (3m)4.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.8%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)2.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.52 | ||
| Fwd PE | 24.68 | ||
| P/S | 11.09 | ||
| P/FCF | 31.31 | ||
| P/OCF | 27.67 | ||
| P/B | 3.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.51 |
EPS(TTM)7.2
EY3.08%
EPS(NY)9.48
Fwd EY4.05%
FCF(TTM)7.48
FCFY3.19%
OCF(TTM)8.46
OCFY3.61%
SpS21.11
BVpS69.29
TBVpS-2.57
PEG (NY)1.44
PEG (5Y)7.36
Graham Number105.95
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%
ROICexgc growth 3Y-18.89%
ROICexgc 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 | 5.69 |
F-Score8
WACC11.71%
ROIC/WACC0.45
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 Y22.62%
EPS Next 2Y21.93%
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 Year16.6%
Revenue Next 2Y14.91%
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%
ANALOG DEVICES INC / ADI FAQ
What is the fundamental rating for ADI stock?
ChartMill assigns a fundamental rating of 5 / 10 to ADI.
Can you provide the valuation status for ANALOG DEVICES INC?
ChartMill assigns a valuation rating of 4 / 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 6 / 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 96.76%.