NasdaqGS:ADI

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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. More Details


Snowflake Analysis

Established dividend payer with mediocre 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

Stable Share Price: ADI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.3%

ADI

1.0%

US Semiconductor

0.08%

US Market


1 Year Return

0.5%

ADI

36.5%

US Semiconductor

12.8%

US Market

Return vs Industry: ADI underperformed the US Semiconductor industry which returned 36.5% over the past year.

Return vs Market: ADI underperformed the US Market which returned 12.8% over the past year.


Shareholder returns

ADIIndustryMarket
7 Day0.3%1.0%0.08%
30 Day-1.0%-2.0%-1.8%
90 Day-6.8%7.7%7.2%
1 Year2.6%0.5%39.0%36.5%15.3%12.8%
3 Year45.7%37.0%81.3%71.9%39.2%29.9%
5 Year140.5%114.9%243.8%210.0%88.3%67.1%

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?

38.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ADI ($114.91) is trading above our estimate of fair value ($105.69)

Significantly Below Fair Value: ADI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ADI is poor value based on its PE Ratio (38.1x) compared to the US Semiconductor industry average (34.2x).

PE vs Market: ADI is poor value based on its PE Ratio (38.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: ADI is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: ADI is overvalued based on its PB Ratio (3.6x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

How is Analog Devices forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADI's forecast earnings growth (16.6% per year) is above the savings rate (2.2%).

Earnings vs Market: ADI's earnings (16.6% per year) are forecast to grow slower than the US market (23.1% per year).

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

Revenue vs Market: ADI's revenue (7.5% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: ADI's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ADI's Return on Equity is forecast to be low in 3 years time (14.4%).


Next Steps

Past Performance

How has Analog Devices performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADI has high quality earnings.

Growing Profit Margin: ADI's current net profit margins (20.1%) are lower than last year (24.4%).


Past Earnings Growth Analysis

Earnings Trend: ADI's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: ADI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ADI had negative earnings growth (-25.2%) over the past year, making it difficult to compare to the Semiconductor industry average (7.5%).


Return on Equity

High ROE: ADI's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is Analog Devices's financial position?


Financial Position Analysis

Short Term Liabilities: ADI's short term assets ($2.5B) exceed its short term liabilities ($1.7B).

Long Term Liabilities: ADI's short term assets ($2.5B) do not cover its long term liabilities ($8.1B).


Debt to Equity History and Analysis

Debt Level: ADI's debt to equity ratio (49.7%) is considered high.

Reducing Debt: ADI's debt to equity ratio has increased from 17.6% to 49.7% over the past 5 years.

Debt Coverage: ADI's debt is well covered by operating cash flow (34.1%).

Interest Coverage: ADI's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet


Next Steps

Dividend

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

2.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADI's dividend (2.16%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: ADI's dividend (2.16%) is low compared to the top 25% of dividend payers in the US market (4.7%).


Stability and Growth of Payments

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: At its current payout ratio (79.6%), ADI's 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 (49.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Vince Roche (60 yo)

7.33yrs

Tenure

US$11,948,434

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 ($USD11.95M) is about average for companies of similar size in the US market ($USD11.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Raymond Stata
Founder & Chairman47.67yrsUS$480.53k0.22%
$ 94.8m
Vincent Roche
President7.33yrsUS$11.95m0.0066%
$ 2.8m
Prashanth Mahendra-Rajah
Senior VP of Finance & CFO3yrsUS$3.71m0.0039%
$ 1.7m
Martin Cotter
Senior Vice President of Worldwide Sales & Digital Marketing4yrsUS$2.54m0.0040%
$ 1.7m
Joseph Hassett
Senior Vice President of Industrial & Consumer0.75yrUS$2.60m0.0046%
$ 1.9m
Steven Pietkiewicz
Senior Vice President of Power Products3.25yrsUS$3.17m0.0095%
$ 4.1m
Stephan Lattari
Senior Vice President of Global Operations & Technology0.75yrno datano data
Michael Sondel
Chief Accounting Officer1.58yrsno data0.0011%
$ 454.4k
Daniel Leibholz
Senior VP & CTO1.42yrsno datano data
Michael Lucarelli
Senior Director of Investor Relationsno datano datano data
Margaret Seif
Chief People Officer & Chief Legal Officer0.083yrno data0.0059%
$ 2.5m
Gregory Henderson
Senior Vice President of Automotive3.25yrsno data0.0049%
$ 2.1m

3.0yrs

Average Tenure

59yo

Average Age

Experienced Management: ADI's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Raymond Stata
Founder & Chairman47.67yrsUS$480.53k0.22%
$ 94.8m
Vincent Roche
President7.33yrsUS$11.95m0.0066%
$ 2.8m
Bruce Evans
Independent Director5.25yrsUS$306.86k0.024%
$ 10.4m
James Champy
Independent Presiding Directorno dataUS$335.61k0.014%
$ 6.1m
Laurie Glimcher
Independent Director0.083yrno datano data
Kenton Sicchitano
Independent Director17.5yrsUS$321.86k0.0066%
$ 2.8m
Edward Frank
Independent Director6.25yrsUS$311.23k0.0031%
$ 1.3m
Mark Little
Independent Director3.67yrsUS$304.36k0.0019%
$ 785.6k
Anantha Chandrakasan
Independent Director1.67yrsUS$335.14k0.00067%
$ 284.5k
Karen Golz
Independent Director2.25yrsUS$306.86k0.00096%
$ 407.7k
Susie Wee
Independent Director0.83yrno data0.00017%
$ 72.2k

4.5yrs

Average Tenure

65yo

Average Age

Experienced Board: ADI's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$42.466b
  • Shares outstanding: 369.56m
  • 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
ANLXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1969
ADIWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1969
0HFNLSE (London Stock Exchange)YesCommon StockGBUSDJan 1969
ANLETLX (Eurotlx)YesCommon StockITEURJan 1969
ADI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1969
A1DI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 2 COMBRBRLDec 2019

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 Analysis2020/09/21 06:10
End of Day Share Price2020/09/18 00:00
Earnings2020/08/01
Annual Earnings2019/11/02


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.