NasdaqGS:ADI

Stock Analysis Report

Executive Summary

Analog Devices, Inc. designs, manufactures, and markets integrated circuits (ICs), algorithms, software, and subsystems that leverage analog, mixed-signal, and digital signal processing technologies.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Analog Devices's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

ADI

3.0%

US Semiconductor

1.8%

US Market


1 Year Return

32.3%

ADI

20.6%

US Semiconductor

7.3%

US Market

Return vs Industry: ADI exceeded the US Semiconductor industry which returned 20.6% over the past year.

Return vs Market: ADI exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

ADIIndustryMarket
7 Day1.4%3.0%1.8%
30 Day-4.6%-0.02%-0.7%
90 Day-5.0%4.7%0.06%
1 Year35.1%32.3%22.9%20.6%9.7%7.3%
3 Year84.6%73.3%82.2%71.5%46.3%36.9%
5 Year167.0%137.0%137.4%112.9%64.5%46.5%

Price Volatility Vs. Market

How volatile is Analog Devices's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Analog Devices undervalued compared to its fair value and its price relative to the market?

27.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: ADI ($110) is trading above our estimate of fair value ($84.28)

Significantly Undervalued: ADI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ADI is good value based on its PE Ratio (27.6x) compared to the Semiconductor industry average (27.6x).

PE vs Market: ADI is poor value based on its PE Ratio (27.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: ADI is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: ADI is overvalued based on its PB Ratio (3.4x) compared to the US Semiconductor industry average (2.8x).


Next Steps

Future Growth

How is Analog Devices forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADI's forecast earnings growth (7.5% per year) is above the savings rate (2.7%).

Earnings vs Market: ADI's earnings (7.5% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: ADI's earnings are forecast to grow, but not significantly.

Revenue vs Market: ADI's revenue (3.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ADI's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ADI's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has Analog Devices performed over the past 5 years?

19.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ADI's earnings have grown by 19.9% per year over the past 5 years.

Accelerating Growth: ADI's earnings growth over the past year (2.4%) is below its 5-year average (19.9% per year).

Earnings vs Industry: ADI earnings growth over the past year (2.4%) exceeded the Semiconductor industry -6.2%.


Return on Equity

High ROE: ADI's Return on Equity (12.5%) is considered low.


Return on Assets

ROA vs Industry: ADI has a higher Return on Assets than the Semiconductor industry average last year.


Return on Capital Employed

ROCE Improving: ADI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Analog Devices's financial position?


Financial Position Analysis

Short Term Liabilities: ADI's short term assets ($2.0B) exceeds its short term liabilities ($1.5B)

Long Term Liabilities: ADI's short term assets (2.0B) do not cover its long term liabilities (8.3B)


Debt to Equity History and Analysis

Debt Level: ADI's debt to equity ratio (49.3%) is considered high

Reducing Debt: ADI's debt to equity ratio has reduced from 56.5% to 49.3% over the past 5 years.

Debt Coverage: ADI's debt is well covered by operating cash flow (39.7%).

Interest Coverage: ADI's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet

Inventory Level: ADI has a low level of unsold assets or inventory.

Debt Coverage by Assets: ADI's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Analog Devices's current dividend yield, its reliability and sustainability?

1.96%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.5%markettop25%3.7%industryaverage2.2%forecastin3Years2.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ADI's dividend (1.96%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ADI's dividend (1.96%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: ADI's dividends per share have been stable in the past 10 years.

Growing Dividend: ADI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.6%), ADI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ADI's dividends in 3 years are forecast to be well covered by earnings (39.9% payout ratio).


Next Steps

Management

What is the CEO of Analog Devices's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Vince Roche (59yo)

6.4yrs

Tenure

US$11,007,691

Compensation

Mr. Vincent T. Roche, also known as Vince, has been the President of Analog Devices, Inc. since November 5, 2012 and has been its Chief Executive Officer since May 2013. Mr. Roche served as an Interim Chie ...


CEO Compensation Analysis

Compensation vs. Market: Vince's total compensation ($USD11.01M) is about average for companies of similar size in the US market ($USD11.21M).

Compensation vs Earnings: Vince's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.1yrs

Average Tenure

58.5yo

Average Age

Experienced Management: ADI's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

64yo

Average Age

Experienced Board: ADI's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

Insider Buying: ADI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$370,33511 Oct 19
Steven Pietkiewicz
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Power Products
Shares3,419
Max PriceUS$108.32
SellUS$1,238,93816 Sep 19
Joseph Hassett
EntityIndividual
Role
Chief Operating Officer
Senior Vice President of Global Operations & Technology
Shares10,621
Max PriceUS$116.65
SellUS$160,56430 Aug 19
Prashanth Mahendra-Rajah
EntityIndividual
Role
Chief Financial Officer
Senior VP of Finance & CFO
Shares1,463
Max PriceUS$109.75
SellUS$815,96429 Jun 19
Steven Pietkiewicz
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Power Products
Shares7,219
Max PriceUS$113.03
SellUS$171,67528 May 19
Yusuf Jamal
EntityIndividual
Shares1,748
Max PriceUS$98.66
SellUS$505,61122 Mar 19
Steven Pietkiewicz
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Power Products
Shares4,575
Max PriceUS$110.52
SellUS$1,662,19815 Mar 19
Vincent Roche
EntityIndividual
Role
Chief Executive Officer
President
Shares15,505
Max PriceUS$107.20
SellUS$2,153,52004 Mar 19
Raymond Stata
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares20,000
Max PriceUS$107.68
SellUS$2,146,68027 Feb 19
Raymond Stata
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares20,000
Max PriceUS$107.33
SellUS$1,075,40025 Feb 19
Raymond Stata
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares10,000
Max PriceUS$107.54
SellUS$270,98725 Feb 19
Prashanth Mahendra-Rajah
EntityIndividual
Role
Chief Financial Officer
Senior VP of Finance & CFO
Shares2,556
Max PriceUS$106.02
SellUS$1,056,03025 Feb 19
Margaret Seif
EntityIndividual
Role
Chief Legal Officer
Chief People Officer
Shares10,000
Max PriceUS$105.60
SellUS$900,14029 Nov 18
Raymond Stata
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares10,000
Max PriceUS$90.01
SellUS$243,88623 Nov 18
Prashanth Mahendra-Rajah
EntityIndividual
Role
Chief Financial Officer
Senior VP of Finance & CFO
Shares2,700
Max PriceUS$90.33

Ownership Breakdown


Management Team

  • Marnie Seif (58yo)

    Chief People Officer

    • Tenure: 3.8yrs
  • Ray Stata (85yo)

    Founder & Chairman

    • Tenure: 46.8yrs
    • Compensation: US$462.55k
  • Vince Roche (59yo)

    President

    • Tenure: 6.4yrs
    • Compensation: US$11.01m
  • John Hassett (61yo)

    Senior Vice President of Global Operations & Technology

    • Tenure: 3.6yrs
    • Compensation: US$2.92m
  • Steve Pietkiewicz (59yo)

    Senior Vice President of Power Products

    • Tenure: 2.3yrs
    • Compensation: US$3.37m
  • Mike Lucarelli

    Director of Investor Relations

    • Tenure: 0yrs
  • Dan Leibholz

    Chief Technology Officer

    • Tenure: 0.5yrs
  • Martin Cotter (54yo)

    Senior Vice President of Worldwide Sales & Digital Marketing

    • Tenure: 3.1yrs
    • Compensation: US$2.88m
  • Prashanth Mahendra-Rajah (49yo)

    Senior VP of Finance & CFO

    • Tenure: 2.1yrs
    • Compensation: US$3.98m
  • Michael Sondel (42yo)

    Chief Accounting Officer & Principal Accounting Officer

    • Tenure: 0.7yrs

Board Members

  • Bruce Evans (60yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$278.67k
  • Ray Stata (85yo)

    Founder & Chairman

    • Tenure: 46.8yrs
    • Compensation: US$462.55k
  • Neil Novich (64yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$288.67k
  • James Champy (76yo)

    Presiding Director

    • Tenure: 0yrs
    • Compensation: US$303.67k
  • Vince Roche (59yo)

    President

    • Tenure: 6.4yrs
    • Compensation: US$11.01m
  • Kenton Sicchitano (75yo)

    Independent Director

    • Tenure: 16.6yrs
    • Compensation: US$293.67k
  • Ed Frank (63yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$281.17k
  • Lisa Su (49yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$276.17k
  • Mark Little (66yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$278.67k
  • Karen Golz (64yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$175.66k

Company Information

Analog Devices, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Analog Devices, Inc.
  • Ticker: ADI
  • Exchange: NasdaqGS
  • Founded: 1965
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$40.635b
  • Shares outstanding: 369.41m
  • Website: https://www.analog.com

Number of Employees


Location

  • Analog Devices, Inc.
  • One Technology Way
  • PO Box 9106
  • Norwood
  • Massachusetts
  • 2062
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1969
ANLDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
ADIWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1969
0HFNLSE (London Stock Exchange)YesCommon StockGBUSDJan 1969
ADI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1969

Biography

Analog Devices, Inc. designs, manufactures, and markets integrated circuits (ICs), algorithms, software, and subsystems that leverage analog, mixed-signal, and digital signal processing technologies. The c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:31
End of Day Share Price2019/10/17 00:00
Earnings2019/08/03
Annual Earnings2018/11/03


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.