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ADI

Analog Devices NasdaqGS:ADI Stock Report

Last Price

US$170.13

Market Cap

US$87.5b

7D

-2.5%

1Y

2.0%

Updated

18 Aug, 2022

Data

Company Financials +
ADI fundamental analysis
Snowflake Score
Valuation2/6
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$170.13
52 Week HighUS$191.95
52 Week LowUS$138.50
Beta1.13
1 Month Change5.38%
3 Month Change4.73%
1 Year Change2.00%
3 Year Change56.61%
5 Year Change114.62%
Change since IPO10,505.48%

Recent News & Updates

Aug 16

Analog Devices Q3 2022 Earnings Preview

Analog Devices (NASDAQ:ADI) is scheduled to announce Q3 earnings results on Wednesday, August 17th, before market open. The consensus EPS Estimate is $2.43 (+41.3% Y/Y) and the consensus Revenue Estimate is $3.06B (+73.9% Y/Y). Over the last 2 years, ADI has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time. Over the last 3 months, EPS estimates have seen 22 upward revisions and 0 downward. Revenue estimates have seen 20 upward revisions and 0 downward.

Aug 15
Analog Devices, Inc. (NASDAQ:ADI) Shares Could Be 23% Below Their Intrinsic Value Estimate

Analog Devices, Inc. (NASDAQ:ADI) Shares Could Be 23% Below Their Intrinsic Value Estimate

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Analog Devices, Inc...

Aug 01
These 4 Measures Indicate That Analog Devices (NASDAQ:ADI) Is Using Debt Safely

These 4 Measures Indicate That Analog Devices (NASDAQ:ADI) Is Using Debt Safely

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

ADIUS SemiconductorUS Market
7D-2.5%2.4%1.4%
1Y2.0%-3.2%-8.4%

Return vs Industry: ADI exceeded the US Semiconductor industry which returned -4.2% over the past year.

Return vs Market: ADI exceeded the US Market which returned -9% over the past year.

Price Volatility

Is ADI's price volatile compared to industry and market?
ADI volatility
ADI Average Weekly Movement4.6%
Semiconductor Industry Average Movement8.6%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

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

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$87.50b
Earnings (TTM)US$1.89b
Revenue (TTM)US$11.11b

46.3x

P/E Ratio

7.9x

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

1.8%

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

2/6

Valuation Score 2/6

  • 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/Revenue8.3x
Enterprise Value/EBITDA17x
PEG Ratio3.7x

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 Average13.4x
MU Micron Technology
7x5.3%US$69.5b
TXN Texas Instruments
19.1x-4.4%US$163.1b
NXPI NXP Semiconductors
19.6x7.4%US$48.0b
INTC Intel
7.8x2.2%US$148.6b
ADI Analog Devices
46.3x12.5%US$87.5b

Price-To-Earnings vs Peers: ADI is expensive based on its Price-To-Earnings Ratio (46.3x) compared to the peer average (13.4x).


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 (46.3x) compared to the US Semiconductor industry average (19.3x)


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 Ratio46.3x
Fair PE Ratio27.4x

Price-To-Earnings vs Fair Ratio: ADI is expensive based on its Price-To-Earnings Ratio (46.3x) compared to the estimated Fair Price-To-Earnings Ratio (27.4x).


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 ($170.13) is trading below our estimate of fair value ($233.69)

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 less than 20% higher than the current share price.


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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


12.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADI's forecast earnings growth (12.5% per year) is above the savings rate (1.9%).

Earnings vs Market: ADI's earnings (12.5% per year) are forecast to grow slower than the US market (14.4% 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 (7.8% 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 (13.6%).


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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 56.1%.


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


1.79%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ADI's dividend (1.79%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: ADI's dividend (1.79%) is low compared to the top 25% of dividend payers in the US market (3.99%).


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?

3.3yrs

Average management tenure


CEO

Vince Roche (62 yo)

9.25yrs

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 ($USD30.82M) is above average for companies of similar size in the US market ($USD12.88M).

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 (3.3 years average tenure).


Board Members

Experienced Board: ADI's board of directors are considered experienced (5.7 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 39.7%.


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$87.505b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 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.