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. While ADI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ADI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ADI was profitable.
ADI had a positive operating cash flow in the past year.
ADI had positive earnings in each of the past 5 years.
Each year in the past 5 years ADI had a positive operating cash flow.
1.2 Ratios
ADI has a Return On Assets of 5.82%. This is in the better half of the industry: ADI outperforms 62.26% of its industry peers.
ADI has a Return On Equity of 7.92%. This is comparable to the rest of the industry: ADI outperforms 59.43% of its industry peers.
ADI has a better Return On Invested Capital (6.70%) than 63.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ADI is significantly below the industry average of 11.07%.
The 3 year average ROIC (6.02%) for ADI is below the current ROIC(6.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.82% | ||
| ROE | 7.92% | ||
| ROIC | 6.7% |
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
ADI has a better Profit Margin (24.34%) than 83.02% of its industry peers.
ADI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 29.87%, ADI belongs to the best of the industry, outperforming 88.68% of the companies in the same industry.
ADI's Operating Margin has been stable in the last couple of years.
ADI's Gross Margin of 62.47% is amongst the best of the industry. ADI outperforms 84.91% of its industry peers.
ADI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.87% | ||
| PM (TTM) | 24.34% | ||
| GM | 62.47% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADI is destroying value.
The number of shares outstanding for ADI has been reduced 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 5.21 indicates that ADI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.21, ADI is doing good in the industry, outperforming 61.32% of the companies in the same industry.
ADI has a debt to FCF ratio of 2.16. This is a good value and a sign of high solvency as ADI would need 2.16 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.16, ADI is doing good in the industry, outperforming 67.92% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that ADI is not too dependend on debt financing.
ADI has a Debt to Equity ratio (0.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.16 | ||
| Altman-Z | 5.21 |
ROIC/WACC0.59
WACC11.4%
2.3 Liquidity
A Current Ratio of 1.51 indicates that ADI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.51, ADI is not doing good in the industry: 81.13% of the companies in the same industry are doing better.
A Quick Ratio of 0.98 indicates that ADI may have some problems paying its short term obligations.
The Quick ratio of ADI (0.98) is worse than 82.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
ADI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.88%.
ADI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.12% yearly.
ADI shows a decrease in Revenue. In the last year, the revenue decreased by -8.03%.
The Revenue has been growing by 14.60% on average over the past years. This is quite good.
EPS 1Y (TTM)-12.88%
EPS 3Y27.09%
EPS 5Y11.12%
EPS growth Q2Q-37.09%
Revenue 1Y (TTM)-8.03%
Revenue growth 3Y29.99%
Revenue growth 5Y14.6%
Revenue growth Q2Q-22.68%
3.2 Future
ADI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.73% yearly.
ADI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.30% yearly.
EPS Next Y-40.42%
EPS Next 2Y-13.3%
EPS Next 3Y-2.15%
EPS Next 5Y8.73%
Revenue Next Year-25.47%
Revenue Next 2Y-8.38%
Revenue Next 3Y-1.22%
Revenue Next 5Y4.3%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.96, the valuation of ADI can be described as rather expensive.
Based on the Price/Earnings ratio, ADI is valued a bit cheaper than the industry average as 71.70% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.20, ADI is valued at the same level.
ADI is valuated quite expensively with a Price/Forward Earnings ratio of 25.07.
Based on the Price/Forward Earnings ratio, ADI is valued a bit cheaper than 67.92% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ADI to the average of the S&P500 Index (21.60), we can say ADI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 25.07 |
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 71.70% 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 75.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.05 | ||
| EV/EBITDA | 17.47 |
4.3 Compensation for Growth
The decent profitability rating of ADI may justify a higher PE ratio.
ADI's earnings are expected to decrease with -2.15% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.89
EPS Next 2Y-13.3%
EPS Next 3Y-2.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.96%, ADI has a reasonable but not impressive dividend return.
ADI's Dividend Yield is rather good when compared to the industry average which is at 2.09. ADI pays more dividend than 90.57% of the companies in the same industry.
ADI's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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
ADI pays out 61.07% of its income as dividend. This is not a sustainable payout ratio.
ADI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.07%
EPS Next 2Y-13.3%
EPS Next 3Y-2.15%
ANALOG DEVICES INC
NASDAQ:ADI (4/23/2024, 7:00:00 PM)
Premarket: 198.19 +8.26 (+4.35%)189.93
+3.62 (+1.94%)
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 Cap94.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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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Min 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)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 25.07 | ||
| 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)1.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.82% | ||
| ROE | 7.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.87% | ||
| PM (TTM) | 24.34% | ||
| GM | 62.47% | ||
| 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 Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.98 | ||
| 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)
Growth
EPS 1Y (TTM)-12.88%
EPS 3Y27.09%
EPS 5Y
EPS growth Q2Q
EPS Next Y-40.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.03%
Revenue growth 3Y29.99%
Revenue growth 5Y
Revenue growth 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