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ADI

Analog Devices NasdaqGS:ADI Stock Report

Last Price

US$159.92

Market Cap

US$85.7b

7D

5.2%

1Y

4.4%

Updated

18 May, 2022

Data

Company Financials +
ADI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance1/6
Financial Health5/6
Dividends4/6

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$159.92
52 Week HighUS$191.95
52 Week LowUS$143.81
Beta1.07
1 Month Change-0.26%
3 Month Change-0.32%
1 Year Change4.44%
3 Year Change57.65%
5 Year Change94.74%
Change since IPO9,869.01%

Recent News & Updates

May 13
An Intrinsic Calculation For Analog Devices, Inc. (NASDAQ:ADI) Suggests It's 36% Undervalued

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...

Apr 22

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.

Apr 09

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.

Mar 22

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.

Shareholder Returns

ADIUS SemiconductorUS Market
7D5.2%5.2%2.7%
1Y4.4%9.5%-8.1%

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.

Price Volatility

Is ADI's price volatile compared to industry and market?
ADI volatility
ADI Average Weekly Movement5.6%
Semiconductor Industry Average Movement8.7%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market2.9%

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

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$85.74b
Earnings (TTM)US$1.28b
Revenue (TTM)US$8.44b

65.3x

P/E Ratio

9.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADI income statement (TTM)
RevenueUS$8.44b
Cost of RevenueUS$3.29b
Gross ProfitUS$5.15b
Other ExpensesUS$3.87b
EarningsUS$1.28b

Last Reported Earnings

Jan 29, 2022

Next Earnings Date

May 18, 2022

Earnings per share (EPS)2.45
Gross Margin61.03%
Net Profit Margin15.18%
Debt/Equity Ratio16.7%

How did ADI perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

96%

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


33.3%

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).


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

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


19.2%

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%).


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


9.7%

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.


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 ($2.2B).

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).


Balance Sheet


Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.90%

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.


Next Steps

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 ($USD30.82M) is above average for companies of similar size in the US market ($USD13.27M).

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


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: Insufficient data to determine if insiders have bought more shares than they have sold 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 41.9%.


Top Shareholders

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$85.740b
  • Shares outstanding: 523.32m
  • Website: https://www.analog.com

Number of Employees


Location

  • Analog Devices, Inc.
  • One Analog Way
  • Wilmington
  • Massachusetts
  • 1887
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/18 00:00
End of Day Share Price2022/05/18 00:00
Earnings2022/01/29
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.