| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 1/6 |
| Past Performance | 2/6 |
| 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
Risk Analysis
Analog Devices Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$170.13 |
| 52 Week High | US$191.95 |
| 52 Week Low | US$138.50 |
| Beta | 1.13 |
| 1 Month Change | 5.38% |
| 3 Month Change | 4.73% |
| 1 Year Change | 2.00% |
| 3 Year Change | 56.61% |
| 5 Year Change | 114.62% |
| Change since IPO | 10,505.48% |
Recent News & Updates
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.
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...
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
| ADI | US Semiconductor | US Market | |
|---|---|---|---|
| 7D | -2.5% | 2.4% | 1.4% |
| 1Y | 2.0% | -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
| ADI volatility | |
|---|---|
| ADI Average Weekly Movement | 4.6% |
| Semiconductor Industry Average Movement | 8.6% |
| Market Average Movement | 7.6% |
| 10% most volatile stocks in US Market | 17.1% |
| 10% least volatile stocks in US Market | 3.1% |
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
| 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
| ADI fundamental statistics | |
|---|---|
| Market Cap | US$87.50b |
| Earnings (TTM) | US$1.89b |
| Revenue (TTM) | US$11.11b |
46.3x
P/E Ratio7.9x
P/S RatioIs ADI overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ADI income statement (TTM) | |
|---|---|
| Revenue | US$11.11b |
| Cost of Revenue | US$3.99b |
| Gross Profit | US$7.11b |
| Other Expenses | US$5.23b |
| Earnings | US$1.89b |
Last Reported Earnings
Jul 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 3.67 |
| Gross Margin | 64.06% |
| Net Profit Margin | 17.00% |
| Debt/Equity Ratio | 17.1% |
How did ADI perform over the long term?
See historical performance and comparisonDividends
1.8%
Current Dividend Yield81%
Payout RatioValuation
Is ADI undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6Valuation 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.
| What is ADI's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$87.50b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 8.3x |
| Enterprise Value/EBITDA | 17x |
| PEG Ratio | 3.7x |
Price to Earnings Ratio vs Peers
How does ADI's PE Ratio compare to its peers?
| ADI PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 13.4x | ||
MU Micron Technology | 7x | 5.3% | US$69.5b |
TXN Texas Instruments | 19.1x | -4.4% | US$163.1b |
NXPI NXP Semiconductors | 19.6x | 7.4% | US$48.0b |
INTC Intel | 7.8x | 2.2% | US$148.6b |
ADI Analog Devices | 46.3x | 12.5% | 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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 46.3x |
| Fair PE Ratio | 27.4x |
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
1/6Future 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
2/6Past 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.
Discover strong past performing companies
Financial Health
How is Analog Devices's financial position?
Financial Health Score
5/6Financial 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
5/6Dividend 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.
Discover strong dividend paying companies
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/18 00:00 |
| End of Day Share Price | 2022/08/18 00:00 |
| Earnings | 2022/07/30 |
| Annual Earnings | 2021/10/30 |
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.