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ADI

Analog Devices NasdaqGS:ADI Stock Report

Last Price

US$139.34

Market Cap

US$71.7b

7D

-1.8%

1Y

-16.7%

Updated

02 Oct, 2022

Data

Company Financials +
ADI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance2/6
Financial Health5/6
Dividends5/6

ADI Stock Overview

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

Analog Devices Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Analog Devices
Historical stock prices
Current Share PriceUS$139.34
52 Week HighUS$191.95
52 Week LowUS$138.50
Beta1.16
1 Month Change-6.25%
3 Month Change-2.50%
1 Year Change-16.75%
3 Year Change23.28%
5 Year Change58.58%
Change since IPO8,586.11%

Recent News & Updates

Sep 12
Should You Investigate Analog Devices, Inc. (NASDAQ:ADI) At US$154?

Should You Investigate Analog Devices, Inc. (NASDAQ:ADI) At US$154?

Let's talk about the popular Analog Devices, Inc. ( NASDAQ:ADI ). The company's shares saw significant share price...

Sep 08

Analog Devices prices $300M senior note offering

Analog Devices (NASDAQ:ADI) on Thursday priced an underwritten public offering of $300M of 4.25% senior notes due Oct. 1, 2032. The notes were priced at 99.36% of their principal amount. ADI intends to use net proceeds for general corporate purposes. The offering is expected to close on or about Sept. 15.

Aug 24

Analog Devices: Demand Moderation Ahead, Await A Better Entry Point

Summary While we are bullish on ADI's long-term position in the power management market, we are worried about ADI's business over the next few months. We expect demand to moderate due to supply chain issues, inflationary pressures, higher interest rates, and weakening consumer demand. ADI's automotive and industrial markets are forecasted to grow meaningfully long term, but we expect near-term demand to moderate as higher interest rates bite and the supply chain normalizes. We believe investors should remain on the sidelines and wait for a more favorable entry point on the stock. We previously recommended investors buy Analog Devices, Inc. (ADI) shares, but global supply-demand dynamics have changed since then. ADI CEO Vincent Roche reported that the company saw order cancelations during last week's earnings call. We believe order cancelations are the first sign of upcoming demand moderation. We attribute demand moderation to supply chain issues and inflationary pressures. The current global economic backdrop is not particularly incentivizing demand growth in ADI's automotive, industrial, communications, and consumer segments. We expect a demand slowdown in ADI's main markets during the coming months. We believe demand moderating will likely impact ADI revenue and EPS in the near term and recommend investors wait for a better entry point to buy the stock. Automotive and industrial demand to moderate Around two-thirds of ADI's business is derived from its automotive and industrial markets. Both markets are forecasted to grow significantly over the coming decade. According to Bloomberg, the automotive market is expected to grow at an annual CAGR of 6.27% between 2022-2028. While we believe demand in the automotive and industrial sectors is strong in the long run, we expect demand to moderate towards 1H23 due to supply chain issues and inflation. We expect a weak automotive market as the Federal Reserve hikes up interest rates. According to data from the U.S Bureau of Labor Statistics, consumers are seeing a 12.5% year-over-year increase in the price of new cars. With increasing interest rates, new car demand will likely pullback in the next few months. We have already begun seeing signs of weakening demand in global communication and consumer markets and expect this weakness to be reflected in demand for ADI's products. The following graph from ADI's 2021 10K breaks down the company's revenue by market. ADI We do not believe ADI is immune to the current worsening global dynamics. ADI CEO, Vincent Roche, confirmed our belief in ADI's 3Q22 earnings. Roche reported that ADI is seeing demand for "orders slowing later in the quarter and cancellations increasing slightly." We believe order cancelations will continue to materialize in the coming months and recommend investors wait for the dust to settle before buying the stock. Near-term hiccups in ADI's plans in the power management sector We were excited about ADI's full-force venture into the power management sector and the acquisition of Linear Technology and Maxim Integrated Products. Yet, we believe its plans will not be able to fully materialize in the near term as the company sees double ordering from customers. We believe ADI is well positioned in the power market in the long term but do not think the company can escape the negative impact of the current macro backdrop. ADI also operates in the highly competitive power management market. While ADI is performing well considering global supply issues and inflation, we expect demand slowdown to be reflected in ADI's stock in the coming months. We expect ADI will not be able to keep up with its biggest competitors as demand moderates. The company's main competitors in power management are Texas Instruments (TXN) and Monolithic Power Systems (MPWR). The following graph outlines ADI's stock performance compared to the competition. Ycharts Valuation ADI is not a cheap stock, currently trading at around $165. On the P/E basis, the stock is trading at 16.9x C2023 EPS of $9.15 compared to the peer group average of 16.4x. ADI is trading at 7.4x on EV/C2023 sales versus the peer group average of 4.6x. We do not believe the stock will grow meaningfully in the near term because of demand headwinds. We expect revenue and EPS to be impacted in the near term, leading to a stock pullback from these levels.

Shareholder Returns

ADIUS SemiconductorUS Market
7D-1.8%-3.9%-2.5%
1Y-16.7%-28.9%-23.2%

Return vs Industry: ADI exceeded the US Semiconductor industry which returned -28.9% over the past year.

Return vs Market: ADI exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is ADI's price volatile compared to industry and market?
ADI volatility
ADI Average Weekly Movement4.4%
Semiconductor Industry Average Movement7.8%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: ADI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ADI's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196524,700Vince Rochehttps://www.analog.com

Analog Devices, Inc. designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems that leverage analog, mixed-signal, and digital signal processing technologies. The company provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and high-end consumer markets; and power ICs include performance, integration, and software design simulation tools for accurate power supply designs. It also offers high-performance amplifiers to condition analog signals; and radio frequency and microwave ICs to support cellular infrastructure; and microelectromechanical systems technology solutions, including accelerometers used to sense acceleration, gyroscopes for sense rotation, inertial measurement units to sense multiple degrees of freedom, and broadband switches for radio and instrument systems, as well as isolators.

Analog Devices Fundamentals Summary

How do Analog Devices's earnings and revenue compare to its market cap?
ADI fundamental statistics
Market CapUS$71.67b
Earnings (TTM)US$1.89b
Revenue (TTM)US$11.11b

38.0x

P/E Ratio

6.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADI income statement (TTM)
RevenueUS$11.11b
Cost of RevenueUS$3.99b
Gross ProfitUS$7.11b
Other ExpensesUS$5.23b
EarningsUS$1.89b

Last Reported Earnings

Jul 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.67
Gross Margin64.06%
Net Profit Margin17.00%
Debt/Equity Ratio17.1%

How did ADI perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

81%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ADI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ADI?

Other financial metrics that can be useful for relative valuation.

ADI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.9x
Enterprise Value/EBITDA14.1x
PEG Ratio3.1x

Price to Earnings Ratio vs Peers

How does ADI's PE Ratio compare to its peers?

ADI PE Ratio vs Peers
The above table shows the PE ratio for ADI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.4x
MU Micron Technology
6.4x-7.4%US$55.3b
QCOM QUALCOMM
9.9x0.04%US$126.9b
INTC Intel
5.5x3.3%US$105.8b
NXPI NXP Semiconductors
15.8x6.6%US$38.7b
ADI Analog Devices
38x12.4%US$71.7b

Price-To-Earnings vs Peers: ADI is expensive based on its Price-To-Earnings Ratio (38x) compared to the peer average (9.4x).


Price to Earnings Ratio vs Industry

How does ADI's PE Ratio compare vs other companies in the US Semiconductor Industry?

Price-To-Earnings vs Industry: ADI is expensive based on its Price-To-Earnings Ratio (38x) compared to the US Semiconductor industry average (15.5x)


Price to Earnings Ratio vs Fair Ratio

What is ADI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ADI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio38x
Fair PE Ratio26.7x

Price-To-Earnings vs Fair Ratio: ADI is expensive based on its Price-To-Earnings Ratio (38x) compared to the estimated Fair Price-To-Earnings Ratio (26.7x).


Share Price vs Fair Value

What is the Fair Price of ADI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ADI ($139.34) is trading below our estimate of fair value ($235.31)

Significantly Below Fair Value: ADI is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADI's forecast earnings growth (12.4% per year) is above the savings rate (1.9%).

Earnings vs Market: ADI's earnings (12.4% per year) are forecast to grow slower than the US market (14.8% per year).

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

Revenue vs Market: ADI's revenue (4.3% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: ADI's revenue (4.3% 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 (13.9%).


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Past Performance

How has Analog Devices performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


9.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ADI has a large one-off loss of $1.2B impacting its July 30 2022 financial results.

Growing Profit Margin: ADI's current net profit margins (17%) are lower than last year (26.1%).


Past Earnings Growth Analysis

Earnings Trend: ADI's earnings have grown by 9.8% per year over the past 5 years.

Accelerating Growth: ADI's earnings growth over the past year (11.1%) exceeds its 5-year average (9.8% per year).

Earnings vs Industry: ADI earnings growth over the past year (11.1%) underperformed the Semiconductor industry 49.2%.


Return on Equity

High ROE: ADI's Return on Equity (5.2%) is considered low.


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Financial Health

How is Analog Devices's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ADI's short term assets ($4.7B) exceed its short term liabilities ($2.4B).

Long Term Liabilities: ADI's short term assets ($4.7B) do not cover its long term liabilities ($11.3B).


Debt to Equity History and Analysis

Debt Level: ADI's net debt to equity ratio (12.9%) is considered satisfactory.

Reducing Debt: ADI's debt to equity ratio has reduced from 82.5% to 17.1% over the past 5 years.

Debt Coverage: ADI's debt is well covered by operating cash flow (68.2%).

Interest Coverage: ADI's interest payments on its debt are well covered by EBIT (15.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.18%

Current Dividend Yield

Dividend Yield vs Market

Analog Devices Dividend Yield vs Market
How does Analog Devices dividend yield compare to the market?
SegmentDividend Yield
Company (Analog Devices)2.2%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Semiconductor)2.1%
Analyst forecast in 3 Years (Analog Devices)2.5%

Notable Dividend: ADI's dividend (2.18%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: ADI's dividend (2.18%) is low compared to the top 25% of dividend payers in the US market (4.73%).


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.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (80.5%), ADI's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (41.8%), ADI's dividend payments are well covered by cash flows.


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Management

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

3.4yrs

Average management tenure


CEO

Vince Roche (62 yo)

9.42yrs

Tenure

US$30,824,323

Compensation

Mr. Vincent T. Roche, also known as Vince, serves as Chief Executive Officer and Chairman of the Board of Directors at Analog Devices, Inc. since March 9, 2022. He served as the President of Analog Device...


CEO Compensation Analysis

Vince Roche's Compensation vs Analog Devices Earnings
How has Vince Roche's remuneration changed compared to Analog Devices's earnings?
DateTotal Comp.SalaryCompany Earnings
Jul 30 2022n/an/a

US$2b

Apr 30 2022n/an/a

US$2b

Jan 29 2022n/an/a

US$1b

Oct 30 2021US$31mUS$1m

US$1b

Jul 31 2021n/an/a

US$2b

May 01 2021n/an/a

US$2b

Jan 30 2021n/an/a

US$1b

Oct 31 2020US$12mUS$1m

US$1b

Aug 01 2020n/an/a

US$1b

May 02 2020n/an/a

US$1b

Feb 01 2020n/an/a

US$1b

Nov 02 2019US$12mUS$1m

US$1b

Aug 03 2019n/an/a

US$1b

May 04 2019n/an/a

US$2b

Feb 02 2019n/an/a

US$2b

Nov 03 2018US$11mUS$985k

US$2b

Aug 04 2018n/an/a

US$1b

May 05 2018n/an/a

US$1b

Feb 03 2018n/an/a

US$800m

Oct 28 2017US$11mUS$878k

US$803m

Jul 29 2017n/an/a

US$675m

Apr 29 2017n/an/a

US$837m

Jan 28 2017n/an/a

US$914m

Oct 29 2016US$7mUS$828k

US$862m

Jul 30 2016n/an/a

US$662m

Apr 30 2016n/an/a

US$648m

Jan 30 2016n/an/a

US$683m

Oct 31 2015US$8mUS$785k

US$697m

Compensation vs Market: Vince's total compensation ($USD30.82M) is above average for companies of similar size in the US market ($USD13.04M).

Compensation vs Earnings: Vince's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ADI's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: ADI's board of directors are considered experienced (5.8 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

NasdaqGS:ADI Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
25 Aug 22SellUS$2,318,778Vivek JainIndividual14,000US$165.63
17 Jun 22BuyUS$526,184Evans Capital Management, LLCCompany3,650US$144.16
31 May 22SellUS$239,502Edward FrankIndividual1,435US$166.90
19 May 22SellUS$636,420Prashanth Mahendra-RajahIndividual3,901US$163.18
06 Oct 21BuyUS$1,319,957Bruce EvansIndividual8,000.95US$165.01

Ownership Breakdown

What is the ownership structure of ADI?
Owner TypeNumber of SharesOwnership Percentage
Private Companies70,6470.01%
State or Government230,0810.04%
Individual Insiders1,779,5040.3%
General Public64,091,53712.5%
Institutions448,169,76287.1%

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


Top Shareholders

Top 25 shareholders own 50.54% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.89%
The Vanguard Group, Inc.
45,739,493$6.4b1%0.15%
7.81%
BlackRock, Inc.
40,189,784$5.6b-2.77%0.14%
3.92%
State Street Global Advisors, Inc.
20,164,314$2.8b-3.42%0.16%
3.82%
J.P. Morgan Asset Management, Inc.
19,653,353$2.7b-8.6%0.53%
2.08%
Massachusetts Financial Services Company
10,700,964$1.5b-0.99%0.4%
1.96%
Wellington Management Group LLP
10,094,272$1.4b8.1%0.26%
1.8%
Franklin Resources, Inc.
9,283,776$1.3b-4.19%0.57%
1.77%
Geode Capital Management, LLC
9,083,282$1.3b2.4%0.17%
1.7%
Columbia Management Investment Advisers, LLC
8,755,937$1.2b-0.21%0.38%
1.57%
Lazard Asset Management LLC
8,073,104$1.1b5.62%1.15%
1.5%
Wells Fargo & Company, Securities and Brokerage Investments
7,735,214$1.1b0.75%0.49%
1.44%
Invesco Ltd.
7,410,953$1.0b11.98%0.36%
1.3%
FMR LLC
6,702,073$933.9m-32.81%0.09%
1.25%
Northern Trust Global Investments
6,406,487$892.7m-1.8%0.19%
1.21%
Norges Bank Investment Management
6,214,791$866.0m0%0.12%
0.98%
Amundi Asset Management
5,018,267$699.2m-0.49%0.22%
0.96%
T. Rowe Price Group, Inc.
4,943,607$688.8m370.57%0.08%
0.9%
UBS Asset Management
4,631,280$645.3m1.44%0.13%
0.87%
Egerton Capital (UK) LLP
4,455,057$620.8m19.48%4.37%
0.87%
BNY Mellon Asset Management
4,452,305$620.4m3.48%0.14%
0.86%
Generation Investment Management LLP
4,442,799$619.1m80.95%3.37%
0.83%
PRIMECAP Management Company
4,277,120$596.0m-1.48%0.55%
0.78%
Neuberger Berman Investment Advisers LLC
4,015,510$559.5m-6.47%0.58%
0.76%
Capital Research and Management Company
3,897,911$543.1m-16.62%0.04%
0.71%
Legal & General Investment Management Limited
3,631,629$506.0m-3.37%0.16%

Company Information

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


Key Information

  • Name: Analog Devices, Inc.
  • Ticker: ADI
  • Exchange: NasdaqGS
  • Founded: 1965
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: US$71.668b
  • Shares outstanding: 514.34m
  • Website: https://www.analog.com

Number of Employees


Location

  • Analog Devices, Inc.
  • One Analog Way
  • Wilmington
  • Massachusetts
  • 1887
  • 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
ADIBASE (Buenos Aires Stock Exchange)CEDEAR EACH 3 REP 1 ORD USD0.1666ARARSAug 2001
ADIDBASE (Buenos Aires Stock Exchange)CEDEAR EACH 3 REP 1 ORD USD0.1666ARUSDAug 2001
A1DI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REP 1 COMBRBRLDec 2019

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/02 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/07/30
Annual Earnings2021/10/30


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.