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
|Historical stock prices|
|Current Share Price||US$159.92|
|52 Week High||US$191.95|
|52 Week Low||US$143.81|
|1 Month Change||-0.26%|
|3 Month Change||-0.32%|
|1 Year Change||4.44%|
|3 Year Change||57.65%|
|5 Year Change||94.74%|
|Change since IPO||9,869.01%|
Recent News & Updates
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...
Analog Devices: Acquisition Of Maxim Integrated Boosts Analog Market Leadership
Following the completion of the deal with Maxim Integrated, we forecasted the company’s combined revenue growth at 30% in 2022 accounting for Maxim’s revenue contributions. As a combined company, we believe the deal solidifies its market share in the analog market with a share of 13.4% combined compared to 9.2% for ADI pre-acquisition. Through product integration, we expect the company to benefit from the growth of the semiconductor for medical applications at a forecast CAGR of 10.2%. Lastly, we believe the acquisition is also positive for its profitability with a combined gross margin of 63.3% compared to 61.8% for ADI pre-acquisition.
Analog Devices: Highlights From Investor Day 2022
Analog Devices recently had its 2022 investor day, and there are a few highlights that we would like to share with readers along with our commentary on them. We believe Analog Devices to be one of the best semiconductor companies out there, with very sticky revenues and high switching costs for customers, creating a competitive moat. Based on the financial targets the company is setting itself, we believe shares to be moderately undervalued, and they can offer decent returns over the next few years.
Cycle Risks Remain, But Analog Devices Has Solid Long-Term Credentials
Analog Devices has been more or less keeping pace with the analog sector during this period of stretched lead-times, but has arguably underappreciated long-term growth opportunities. Sentiment remains the biggest risk to my view; an eventual correction in lead-times could lead to some temporary weakness in revenue and margin leverage across the sector. Long-term core revenue growth of more than 6% and further margin leverage can support a high single-digit return today, but mind the short-term sentiment risk.
|ADI||US Semiconductor||US Market|
Return vs Industry: ADI underperformed the US Semiconductor industry which returned 9.5% over the past year.
Return vs Market: ADI exceeded the US Market which returned -8.1% over the past year.
|ADI Average Weekly Movement||5.6%|
|Semiconductor Industry Average Movement||8.7%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.9%|
|10% least volatile stocks in US Market||2.9%|
Stable Share Price: ADI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: ADI's weekly volatility (6%) has been stable over the past year.
About the Company
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
|ADI fundamental statistics|
Is ADI overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ADI income statement (TTM)|
|Cost of Revenue||US$3.29b|
Last Reported Earnings
Jan 29, 2022
Next Earnings Date
May 18, 2022
|Earnings per share (EPS)||2.45|
|Net Profit Margin||15.18%|
How did ADI perform over the long term?See historical performance and comparison
1.9%Current Dividend Yield
Is Analog Devices undervalued compared to its fair value and its price relative to the market?
Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ADI ($159.92) is trading below our estimate of fair value ($239.65)
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 PE Ratio (65.3x) compared to the US Semiconductor industry average (19.7x).
PE vs Market: ADI is poor value based on its PE Ratio (65.3x) compared to the US market (16x).
Price to Earnings Growth Ratio
PEG Ratio: ADI is poor value based on its PEG Ratio (3.4x)
Price to Book Ratio
PB vs Industry: ADI is good value based on its PB Ratio (2.2x) compared to the US Semiconductor industry average (3.5x).
How is Analog Devices forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ADI's forecast earnings growth (19.2% per year) is above the savings rate (1.9%).
Earnings vs Market: ADI's earnings (19.2% per year) are forecast to grow faster than the US market (12.4% per year).
High Growth Earnings: ADI's earnings are forecast to grow, but not significantly.
Revenue vs Market: ADI's revenue (7.7% per year) is forecast to grow slower than the US market (7.8% per year).
High Growth Revenue: ADI's revenue (7.7% 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 (12.9%).
How has Analog Devices performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ADI has a large one-off loss of $630.3M impacting its January 29 2022 financial results.
Growing Profit Margin: ADI's current net profit margins (15.2%) are lower than last year (24%).
Past Earnings Growth Analysis
Earnings Trend: ADI's earnings have grown by 9.7% 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 (-8.7%) over the past year, making it difficult to compare to the Semiconductor industry average (70.5%).
Return on Equity
High ROE: ADI's Return on Equity (3.4%) is considered low.
How is Analog Devices's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: ADI's short term assets ($4.6B) exceed its short term liabilities ($2.2B).
Long Term Liabilities: ADI's short term assets ($4.6B) do not cover its long term liabilities ($11.6B).
Debt to Equity History and Analysis
Debt Level: ADI's net debt to equity ratio (11.9%) is considered satisfactory.
Reducing Debt: ADI's debt to equity ratio has reduced from 74% to 16.7% over the past 5 years.
Debt Coverage: ADI's debt is well covered by operating cash flow (50.6%).
Interest Coverage: ADI's interest payments on its debt are well covered by EBIT (10.4x coverage).
What is Analog Devices's current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ADI's dividend (1.9%) is higher than the bottom 25% of dividend payers in the US market (1.51%).
High Dividend: ADI's dividend (1.9%) is low compared to the top 25% of dividend payers in the US market (3.97%).
Stability and Growth of Payments
Stable Dividend: ADI's dividends per share have been stable in the past 10 years.
Growing Dividend: ADI's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its high payout ratio (96.4%), ADI's dividend payments are not well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (57.3%), ADI's dividend payments are covered by cash flows.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Vince Roche (61 yo)
Mr. Vincent T. Roche, also known as Vince, serves as Chief Executive Officer and Chairman of the Board of Directors at Analog Devices, Inc. since March 9, 2022. He served as the President of Analog Device...
CEO Compensation Analysis
Compensation vs Market: Vince's total compensation ($USD30.82M) is above average for companies of similar size in the US market ($USD13.27M).
Compensation vs Earnings: Vince's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: ADI's management team is considered experienced (3 years average tenure).
Experienced Board: ADI's board of directors are considered experienced (5.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 41.9%.
Analog Devices, Inc.'s employee growth, exchange listings and data sources
- Name: Analog Devices, Inc.
- Ticker: ADI
- Exchange: NasdaqGS
- Founded: 1965
- Industry: Semiconductors
- Sector: Semiconductors
- Implied Market Cap: US$85.740b
- Shares outstanding: 523.32m
- Website: https://www.analog.com
Number of Employees
- Analog Devices, Inc.
- One Analog Way
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/18 00:00|
|End of Day Share Price||2022/05/18 00:00|
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.