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%)
Taking everything into account, ADI scores 5 out of 10 in our fundamental rating. ADI was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. ADI has only an average score on both its financial health and profitability. ADI has a decent growth rate and is not valued too expensively.
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.
ADI had positive earnings in each of the past 5 years.
ADI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ADI has a better Return On Assets (4.06%) than 66.07% of its industry peers.
With a decent Return On Equity value of 5.74%, ADI is doing good in 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.
The Average Return On Invested Capital over the past 3 years for ADI is below the industry average of 11.03%.
| 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.
In the last couple of years the Profit Margin of ADI has declined.
With an excellent Operating Margin value of 25.32%, ADI belongs to the best of the industry, outperforming 83.93% of the companies in the same industry.
In the last couple of years the Operating Margin of ADI has declined.
ADI has a better Gross Margin (60.15%) 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.
ADI has about the same amout of shares outstanding than it did 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
ADI has an Altman-Z score of 5.66. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ADI (5.66) is better than 62.50% of its industry peers.
ADI has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as ADI would need 2.36 years to pay back of all of its debts.
The Debt to FCF ratio of ADI (2.36) is better than 67.86% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that ADI is not too dependend on debt financing.
ADI has a Debt to Equity ratio (0.25) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 5.66 |
ROIC/WACC0.45
WACC11.71%
2.3 Liquidity
A Current Ratio of 2.32 indicates that ADI has no problem at all paying its short term obligations.
With a Current ratio value of 2.32, ADI is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
A Quick Ratio of 1.79 indicates that ADI should not have too much problems paying its short term obligations.
ADI has a worse Quick ratio (1.79) than 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.
ADI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.08%.
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)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.
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
The Price/Earnings ratio is 32.52, which means the current valuation is very expensive for ADI.
Based on the Price/Earnings ratio, ADI is valued a bit cheaper than the industry average as 72.32% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.10. ADI is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 24.68 indicates a rather expensive valuation of ADI.
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 (22.52), 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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 67.86% of the companies listed 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 78.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.31 | ||
| EV/EBITDA | 25.38 |
4.3 Compensation for Growth
ADI's 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%.
ADI's Dividend Yield is rather good when compared to the industry average which is at 2.14. ADI pays more dividend than 85.71% 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 | 1.7% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 Change0.6%
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%
PT rev (3m)6.95%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)10.29%
EPS NY rev (1m)0.05%
EPS NY rev (3m)4.15%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)7.05%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)2.91%
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 | 25.38 |
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 | 5.66 |
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%.