ANALOG DEVICES INC (ADI)
US0326541051 - Common Stock
Taking everything into account, ADI scores 5 out of 10 in our fundamental rating. ADI was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. ADI has an excellent profitability rating, but there are some minor concerns on its financial health. ADI is not valued too expensively and it also shows a decent 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.
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 5.82%, ADI is doing good in the industry, outperforming 61.32% of the companies in the same industry.
ADI has a Return On Equity (7.92%) which is comparable to the rest of the industry.
ADI's Return On Invested Capital of 6.70% is fine compared to the rest of the industry. ADI outperforms 62.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADI is significantly below the industry average of 11.36%.
The last Return On Invested Capital (6.70%) for ADI is above the 3 year average (6.02%), which is a sign of increasing profitability.
| 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.
In the last couple of years the Profit Margin of ADI has grown nicely.
ADI's Operating Margin of 29.87% is amongst the best of the industry. ADI outperforms 88.68% of its industry peers.
ADI's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 62.47%, ADI belongs to the top of the industry, outperforming 84.91% of the companies in the same industry.
In the last couple of years the Gross Margin of ADI has remained more or less at the same level.
| 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
ADI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ADI has less shares outstanding
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
ADI has an Altman-Z score of 5.20. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
ADI's Altman-Z score of 5.20 is fine compared to the rest of the industry. ADI outperforms 60.38% of its industry peers.
The Debt to FCF ratio of ADI is 2.16, which is a good value as it means it would take ADI, 2.16 years of fcf income to pay off all of its debts.
ADI has a Debt to FCF ratio of 2.16. This is in the better half of the industry: ADI outperforms 66.98% of its industry peers.
ADI has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.18, ADI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.16 | ||
| Altman-Z | 5.2 |
ROIC/WACC0.59
WACC11.41%
2.3 Liquidity
A Current Ratio of 1.51 indicates that ADI should not have too much problems paying its short term obligations.
The Current ratio of ADI (1.51) is worse than 81.13% of its industry peers.
A Quick Ratio of 0.98 indicates that ADI may have some problems paying its short term obligations.
ADI's Quick ratio of 0.98 is on the low side compared to the rest of the industry. ADI is outperformed by 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%.
The Earnings Per Share has been growing by 11.12% on average over the past years. This is quite good.
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
Based on estimates for the next years, ADI will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.73% on average per year.
The Revenue is expected to grow by 4.30% on average over the next years.
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.
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
A Price/Earnings ratio of 20.91 indicates a rather expensive valuation of ADI.
Based on the Price/Earnings ratio, ADI is valued a bit cheaper than 71.70% of the companies in the same industry.
ADI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.83, which is the current average of the S&P500 Index.
ADI is valuated rather expensively with a Price/Forward Earnings ratio of 25.00.
Based on the Price/Forward Earnings ratio, ADI is valued a bit cheaper than 69.81% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.32. ADI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 25 |
4.2 Price Multiples
71.70% of the companies in the same industry are more expensive than ADI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ADI is valued a bit cheaper than 75.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.98 | ||
| EV/EBITDA | 17.43 |
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)1.88
EPS Next 2Y-13.3%
EPS Next 3Y-2.15%
5. Dividend
5.1 Amount
ADI has a Yearly Dividend Yield of 1.85%.
Compared to an average industry Dividend Yield of 1.95, ADI pays a better dividend. On top of this ADI pays more dividend than 91.51% of the companies listed in the same industry.
ADI's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
5.2 History
On average, the dividend of ADI grows each year by 11.91%, which is quite nice.
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.
The dividend of ADI is growing, but the earnings are growing slower. 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 (4/17/2024, 7:00:00 PM)
Premarket: 189.4 -0.03 (-0.02%)189.43
-1.8 (-0.94%)
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 Cap93.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
Dividend Growth(5Y)
DP
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Ex-Date
Surprises & Revisions
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Revenue beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 25 | ||
| 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)1.88
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
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