Analog Devices (NasdaqGS:ADI) - Share price, News & Analysis

ADI fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	1/6
Financial Health	5/6
Dividends	5/6

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.

Rewards

Trading at 27.3% below our estimate of its fair value

Earnings are forecast to grow 11.82% per year

Earnings have grown 9.6% per year over the past 5 years

Pays a reliable dividend of 1.81%

Risk Analysis

Large one-off items impacting financial results

Profit margins (16.8%) are lower than last year (25.1%)

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year

Analog Devices Competitors

NVIDIA

NasdaqGS:NVDA

US$471.0b

Broadcom

NasdaqGS:AVGO

US$245.8b

Intel

NasdaqGS:INTC

US$182.1b

Advanced Micro Devices

NasdaqGS:AMD

US$165.7b

Price History & Performance

Summary of all time highs, changes and price drops for Analog Devices
Historical stock prices
Current Share Price	US$167.55
52 Week High	US$191.95
52 Week Low	US$143.81
Beta	1.07
1 Month Change	4.43%
3 Month Change	3.35%
1 Year Change	1.79%
3 Year Change	73.41%
5 Year Change	107.08%
Change since IPO	10,344.65%

Recent News & Updates

May 13

An Intrinsic Calculation For Analog Devices, Inc. (NASDAQ:ADI) Suggests It's 36% Undervalued

Today we will run through one way of estimating the intrinsic value of Analog Devices, Inc. ( NASDAQ:ADI ) by...

Shareholder Returns

	ADI	US Semiconductor	US Market
7D	3.1%	8.7%	6.2%
1Y	1.8%	2.0%	-11.4%

Return vs Industry: ADI matched the US Semiconductor industry which returned 2% over the past year.

Return vs Market: ADI exceeded the US Market which returned -10.2% over the past year.

Price Volatility

Is ADI's price volatile compared to industry and market?
ADI volatility
ADI Average Weekly Movement	5.4%
Semiconductor Industry Average Movement	8.8%
Market Average Movement	7.8%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	2.8%

Stable Share Price: ADI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ADI's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1965	24,700	Vince Roche	https://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 Cap	US$87.09b
Earnings (TTM)	US$1.64b
Revenue (TTM)	US$9.75b

53.0x

P/E Ratio

8.9x

P/S Ratio

Is ADI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADI income statement (TTM)
Revenue	US$9.75b
Cost of Revenue	US$3.79b
Gross Profit	US$5.96b
Other Expenses	US$4.32b
Earnings	US$1.64b

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.16
Gross Margin	61.11%
Net Profit Margin	16.84%
Debt/Equity Ratio	16.9%

How did ADI perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

84%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

27.3%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ADI ($167.55) is trading below our estimate of fair value ($230.6)

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

Price To Earnings Ratio

PE vs Industry: ADI is poor value based on its Price-To-Earnings Ratio (53x) compared to the US Semiconductor industry average (22.8x).

PE vs Market: ADI is poor value based on its Price-To-Earnings Ratio (53x) compared to the US market (15.6x).

Price to Earnings Growth Ratio

PEG Ratio: ADI is poor value based on its PEG Ratio (4.5x)

Price to Book Ratio

PB vs Industry: ADI is good value based on its Price-To-Book Ratio (2.3x) compared to the US Semiconductor industry average (3.7x).

Future Growth

How is Analog Devices forecast to perform in the next 1 to 3 years based on estimates from 25 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

11.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADI's forecast earnings growth (11.8% per year) is above the savings rate (1.9%).

Earnings vs Market: ADI's earnings (11.8% per year) are forecast to grow slower than the US market (13.2% per year).

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

Revenue vs Market: ADI's revenue (5.3% per year) is forecast to grow slower than the US market (8.1% per year).

High Growth Revenue: ADI's revenue (5.3% 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 (14.3%).

Past Performance

How has Analog Devices performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

9.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ADI has a large one-off loss of $676.7M impacting its April 30 2022 financial results.

Growing Profit Margin: ADI's current net profit margins (16.8%) are lower than last year (25.1%).

Past Earnings Growth Analysis

Earnings Trend: ADI's earnings have grown by 9.6% per year over the past 5 years.

Accelerating Growth: ADI's earnings growth over the past year (5.4%) is below its 5-year average (9.6% per year).

Earnings vs Industry: ADI earnings growth over the past year (5.4%) underperformed the Semiconductor industry 69.6%.

Return on Equity

High ROE: ADI's Return on Equity (4.4%) is considered low.

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 ($4.6B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: ADI's short term assets ($4.6B) do not cover its long term liabilities ($11.4B).

Debt to Equity History and Analysis

Debt Level: ADI's net debt to equity ratio (12.2%) is considered satisfactory.

Reducing Debt: ADI's debt to equity ratio has reduced from 128.3% to 16.9% over the past 5 years.

Debt Coverage: ADI's debt is well covered by operating cash flow (58.4%).

Interest Coverage: ADI's interest payments on its debt are well covered by EBIT (12.3x coverage).

Balance Sheet

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
Future Dividend Coverage

1.81%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ADI's dividend (1.81%) is higher than the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: ADI's dividend (1.81%) is low compared to the top 25% of dividend payers in the US market (3.92%).

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 (83.9%), ADI's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (49.4%), ADI's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

3.0yrs

Average management tenure

CEO

Vince Roche (61 yo)

9yrs

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

Compensation vs Market: Vince's total compensation ($USD30.82M) is above average for companies of similar size in the US market ($USD13.06M).

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 years average tenure).

Board Members

Experienced Board: ADI's board of directors are considered experienced (5.4 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 been diluted in the past year, with total shares outstanding growing by 40.9%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/28 00:00
End of Day Share Price	2022/05/27 00:00
Earnings	2022/04/30
Annual Earnings	2021/10/30