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Analog Devices

Nasdaq:ADI
Snowflake Description

Established dividend payer with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ADI
Nasdaq
$41B
Market Cap
  1. Home
  2. US
  3. Semiconductors
Company description

Analog Devices, Inc. designs, manufactures, and markets integrated circuits (ICs), algorithms, software, and subsystems that leverage analog, mixed-signal, and digital signal processing technologies. The last earnings update was 28 days ago. More info.


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ADI Share Price and Events
7 Day Returns
6.4%
NasdaqGS:ADI
-0.1%
US Semiconductor
1.2%
US Market
1 Year Returns
9.9%
NasdaqGS:ADI
-6.9%
US Semiconductor
2.3%
US Market
ADI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Analog Devices (ADI) 6.4% 13.9% 0.8% 9.9% 95.3% 106.6%
US Semiconductor -0.1% 1.8% -2.3% -6.9% 74% 86.3%
US Market 1.2% 2% 2% 2.3% 37.9% 39.8%
1 Year Return vs Industry and Market
  • ADI outperformed the Semiconductor industry which returned -6.9% over the past year.
  • ADI outperformed the Market in United States of America which returned 2.3% over the past year.
Price Volatility
ADI
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Analog Devices undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Analog Devices to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Analog Devices.

NasdaqGS:ADI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 23 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ADI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Semiconductor Unlevered Beta Simply Wall St/ S&P Global 1.23
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.23 (1 + (1- 21%) (14.71%))
1.25
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.25
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.25 * 5.96%)
10.18%

Discounted Cash Flow Calculation for NasdaqGS:ADI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Analog Devices is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:ADI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.18%)
2019 1,882.44 Analyst x9 1,708.52
2020 2,196.63 Analyst x8 1,809.48
2021 2,309.10 Analyst x1 1,726.39
2022 2,408.76 Est @ 4.32% 1,634.51
2023 2,501.27 Est @ 3.84% 1,540.47
2024 2,588.99 Est @ 3.51% 1,447.18
2025 2,673.75 Est @ 3.27% 1,356.47
2026 2,756.93 Est @ 3.11% 1,269.44
2027 2,839.54 Est @ 3% 1,186.68
2028 2,922.36 Est @ 2.92% 1,108.46
Present value of next 10 years cash flows $14,787.60
NasdaqGS:ADI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $2,922.36 × (1 + 2.73%) ÷ (10.18% – 2.73%)
$40,298.96
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $40,298.96 ÷ (1 + 10.18%)10
$15,285.47
NasdaqGS:ADI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $14,787.60 + $15,285.47
$30,073.07
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $30,073.07 / 369.76
$81.33
NasdaqGS:ADI Discount to Share Price
Calculation Result
Value per share (USD) From above. $81.33
Current discount Discount to share price of $111.04
= -1 x ($111.04 - $81.33) / $81.33
-36.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Analog Devices is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Analog Devices's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Analog Devices's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ADI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-05-04) in USD $4.11
NasdaqGS:ADI Share Price ** NasdaqGS (2019-06-19) in USD $111.04
United States of America Semiconductor Industry PE Ratio Median Figure of 69 Publicly-Listed Semiconductor Companies 23.16x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Analog Devices.

NasdaqGS:ADI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ADI Share Price ÷ EPS (both in USD)

= 111.04 ÷ 4.11

27.04x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Analog Devices is overvalued based on earnings compared to the US Semiconductor industry average.
  • Analog Devices is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Analog Devices's expected growth come at a high price?
Raw Data
NasdaqGS:ADI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.04x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts
8.4%per year
United States of America Semiconductor Industry PEG Ratio Median Figure of 63 Publicly-Listed Semiconductor Companies 1.09x
United States of America Market PEG Ratio Median Figure of 2,128 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NasdaqGS:ADI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.04x ÷ 8.4%

3.21x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Analog Devices is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Analog Devices's assets?
Raw Data
NasdaqGS:ADI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-05-04) in USD $31.76
NasdaqGS:ADI Share Price * NasdaqGS (2019-06-19) in USD $111.04
United States of America Semiconductor Industry PB Ratio Median Figure of 107 Publicly-Listed Semiconductor Companies 2.54x
United States of America Market PB Ratio Median Figure of 5,246 Publicly-Listed Companies 1.8x
NasdaqGS:ADI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ADI Share Price ÷ Book Value per Share (both in USD)

= 111.04 ÷ 31.76

3.5x

* Primary Listing of Analog Devices.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Analog Devices is overvalued based on assets compared to the US Semiconductor industry average.
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Value checks
We assess Analog Devices's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check)
  5. Analog Devices has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Analog Devices expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Analog Devices expected to grow at an attractive rate?
  • Analog Devices's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Analog Devices's earnings growth is positive but not above the United States of America market average.
  • Analog Devices's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ADI Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ADI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts 8.4%
NasdaqGS:ADI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 23 Analysts 4.4%
United States of America Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 18.1%
United States of America Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ADI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ADI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-10-31 6,719 2,429 1,758 4
2020-10-31 6,238 2,395 1,491 23
2019-10-31 6,020 2,113 1,385 23
NasdaqGS:ADI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-05-04 6,138 2,378 1,520
2019-02-02 6,175 2,425 1,551
2018-11-03 6,201 2,442 1,490
2018-08-04 6,244 2,380 1,450
2018-05-05 6,105 1,400 1,105
2018-02-03 5,690 1,220 800
2017-10-28 5,108 1,154 725
2017-07-29 4,570 989 675
2017-04-29 4,006 1,603 837
2017-01-28 3,636 1,384 914
2016-10-29 3,421 1,291 862
2016-07-30 3,397 992 662

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Analog Devices's earnings are expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).
  • Analog Devices's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ADI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below

All data from Analog Devices Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ADI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-10-31 4.86 5.17 4.55 2.00
2020-10-31 4.04 4.55 3.69 13.00
2019-10-31 3.71 3.83 3.58 13.00
NasdaqGS:ADI Past Financials Data
Date (Data in USD Millions) EPS *
2019-05-04 4.11
2019-02-02 4.19
2018-11-03 4.02
2018-08-04 3.92
2018-05-05 3.00
2018-02-03 2.21
2017-10-28 2.09
2017-07-29 2.04
2017-04-29 2.65
2017-01-28 2.97
2016-10-29 2.79
2016-07-30 2.14

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Analog Devices is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Analog Devices's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Analog Devices has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Analog Devices performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Analog Devices's growth in the last year to its industry (Semiconductor).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Analog Devices's year on year earnings growth rate has been positive over the past 5 years.
  • Analog Devices's 1-year earnings growth exceeds its 5-year average (37.9% vs 18.5%)
  • Analog Devices's earnings growth has exceeded the US Semiconductor industry average in the past year (37.9% vs 22.6%).
Earnings and Revenue History
Analog Devices's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Analog Devices Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ADI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-05-04 6,138.27 1,519.79 677.35 1,160.57
2019-02-02 6,175.17 1,551.50 686.37 1,164.20
2018-11-03 6,200.94 1,489.52 695.94 1,165.41
2018-08-04 6,244.22 1,450.07 658.76 1,143.46
2018-05-05 6,105.44 1,105.15 671.26 1,127.49
2018-02-03 5,689.92 799.88 689.80 1,073.25
2017-10-28 5,107.50 725.02 643.55 968.60
2017-07-29 4,569.96 674.79 624.21 868.67
2017-04-29 4,005.65 837.20 563.14 756.23
2017-01-28 3,636.43 914.29 484.64 681.23
2016-10-29 3,421.41 861.66 461.44 653.82
2016-07-30 3,396.51 661.81 454.26 651.76
2016-04-30 3,390.28 647.86 451.38 649.32
2016-01-30 3,432.54 682.63 456.56 643.32
2015-10-31 3,435.09 696.88 478.97 637.46
2015-08-01 3,270.62 709.27 445.70 621.08
2015-05-02 3,135.00 673.40 458.66 600.39
2015-01-31 3,008.52 655.49 443.37 582.36
2014-11-01 2,864.77 629.32 421.38 559.69
2014-08-02 2,728.66 722.18 437.75 535.61
2014-05-03 2,675.08 717.81 402.53 524.30
2014-02-01 2,639.79 694.85 396.85 516.20
2013-11-02 2,633.69 673.49 389.93 513.04
2013-08-03 2,650.52 651.12 389.35 512.20
2013-05-04 2,659.37 644.65 391.45 513.12
2013-02-02 2,675.22 643.08 395.03 512.54
2012-11-03 2,701.14 651.24 396.52 511.84
2012-08-04 2,722.31 655.58 398.00 505.32

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Analog Devices has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Analog Devices used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.
  • Analog Devices's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Analog Devices's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Analog Devices has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Analog Devices's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Analog Devices's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Analog Devices is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Analog Devices's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Analog Devices's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Analog Devices Company Filings, last reported 1 month ago.

NasdaqGS:ADI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-05-04 11,742.26 6,038.13 713.60
2019-02-02 11,585.44 6,268.72 605.86
2018-11-03 10,988.54 6,332.67 816.59
2018-08-04 10,856.22 6,555.25 772.58
2018-05-05 10,585.36 6,982.44 806.52
2018-02-03 10,347.78 7,434.86 827.55
2017-10-28 10,161.54 7,851.08 1,047.84
2017-07-29 9,922.90 8,199.23 908.57
2017-04-29 9,966.60 12,893.53 6,188.37
2017-01-28 5,306.43 3,805.40 6,317.07
2016-10-29 5,165.62 1,732.18 4,055.79
2016-07-30 4,983.33 1,731.76 3,803.43
2016-04-30 4,873.70 1,731.34 3,754.08
2016-01-30 4,994.86 1,730.95 3,789.47
2015-10-31 5,072.96 902.67 3,028.93
2015-08-01 5,065.16 893.00 3,099.96
2015-05-02 4,964.21 892.76 3,074.78
2015-01-31 4,806.21 911.03 2,873.28
2014-11-01 4,757.90 872.79 2,866.47
2014-08-02 5,007.20 2,868.05 4,932.26
2014-05-03 4,931.52 872.52 4,807.23
2014-02-01 4,795.64 872.38 4,701.11
2013-11-02 4,739.58 872.24 4,682.91
2013-08-03 4,643.24 872.10 4,450.29
2013-05-04 4,460.59 757.86 4,173.04
2013-02-02 4,323.80 759.67 3,986.98
2012-11-03 4,165.36 821.60 3,900.38
2012-08-04 4,028.61 857.04 3,765.05
  • Analog Devices's level of debt (51.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (18.6% vs 51.4% today).
  • Debt is well covered by operating cash flow (39.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.3x coverage).
X
Financial health checks
We assess Analog Devices's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Analog Devices has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.95%
Current annual income from Analog Devices dividends. Estimated to be 1.98% next year.
If you bought $2,000 of Analog Devices shares you are expected to receive $39 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Analog Devices's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Analog Devices's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ADI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
United States of America Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:ADI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-10-31 2.31 5.00
2020-10-31 2.26 12.00
2019-10-31 2.09 12.00
NasdaqGS:ADI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-22 2.160 2.123
2019-02-19 2.160 1.981
2018-11-20 1.920 2.112
2018-08-22 1.920 2.148
2018-05-30 1.920 1.964
2018-02-27 1.920 2.094
2017-11-22 1.800 2.023
2017-11-21 1.800 2.013
2017-08-30 1.800 2.063
2017-05-31 1.800 2.263
2017-02-14 1.800 2.236
2016-11-22 1.680 2.282
2016-08-17 1.680 2.640
2016-05-18 1.680 2.844
2016-02-16 1.680 2.974
2015-11-24 1.600 2.968
2015-08-18 1.600 2.776
2015-05-19 1.600 2.528
2015-02-17 1.600 2.619
2014-12-10 1.480 2.694
2014-11-25 1.480 2.673
2014-08-26 1.480 3.036
2014-05-20 1.480 2.811
2014-02-18 1.480 2.849
2013-11-26 1.360 2.758
2013-08-20 1.360 2.838
2013-05-21 1.360 2.898
2013-02-19 1.360 3.017
2012-11-27 1.200 2.803
2012-08-21 1.200 3.023
2012-05-22 1.200 3.185
2012-02-22 1.200 3.121
2011-11-22 1.000 2.715
2011-11-21 1.000 2.957
2011-08-16 1.000 2.940
2011-05-17 1.000 2.720
2011-02-15 0.880 2.238
2010-11-22 0.880 2.308
2010-08-17 0.880 2.812
2010-05-18 0.880 3.002
2010-02-17 0.800 2.713
2009-11-24 0.800 2.709
2009-11-23 0.800 2.777
2009-08-20 0.800 2.903

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Analog Devices's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Analog Devices's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Analog Devices afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Analog Devices has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Analog Devices's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Vince Roche
COMPENSATION $11,007,691
AGE 58
TENURE AS CEO 6.1 years
CEO Bio

Mr. Vincent T. Roche, also known as Vince, has been the President of Analog Devices, Inc. since November 5, 2012 and has been its Chief Executive Officer since May 2013. Mr. Roche served as an Interim Chief Executive Officer of Analog Devices Inc. from March 29, 2013 to May 2013. He served as a Vice President of Sales and Strategic Market Segments Group at Analog Devices Inc. since October 2009 until November 2012. Mr. Roche served as a Vice President of Strategic Market Segments (SMS) Group at Analog Devices Inc. since October 29, 2009 until November 2012. He served as a Vice President of Worldwide Sales at Analog Devices, Inc. from March 2001 to October 29, 2009. In this role, he was responsible for direct customer sales, distribution and e-commerce for all product lines, as well as corporate marketing and public relations at Analog Devices. Mr. Roche began his career at ADI in 1988 as a senior marketing engineer in Limerick, Ireland and has served in key positions spanning corporate leadership, worldwide sales, strategic marketing, business development, and product management over his more than 30-year tenure at ADI. He served as Vice President and General Manager of Silicon Valley Business Units and Computer & Networking of Analog from 1999 to March 2001, served as its Product Line Director from 1995 to 1999 and also served as its Product Marketing Manager from 1988 to 1995. He has been Chairman of the Board of Acacia Communications, Inc. since May 15, 2017. He has been a Director of Acacia Communications, Inc. since June 1, 2016 and Analog Devices, Inc. since May 2013. Mr. Roche earned a BS in electrical engineering from Limerick University in Ireland.

CEO Compensation
  • Vince's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Vince's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Analog Devices management team in years:

2.8
Average Tenure
57.5
Average Age
  • The tenure for the Analog Devices management team is about average.
Management Team

Ray Stata

TITLE
Founder & Chairman
COMPENSATION
$463K
AGE
84
TENURE
54.4 yrs

Vince Roche

TITLE
President
COMPENSATION
$11M
AGE
58
TENURE
6.1 yrs

Prashanth Mahendra-Rajah

TITLE
Senior VP of Finance & CFO
COMPENSATION
$4M
AGE
48
TENURE
1.8 yrs

John Hassett

TITLE
Senior Vice President of Global Operations & Technology
COMPENSATION
$3M
AGE
60
TENURE
3.3 yrs

Martin Cotter

TITLE
Senior Vice President of Worldwide Sales & Digital Marketing
COMPENSATION
$3M
AGE
53
TENURE
2.8 yrs

Steve Pietkiewicz

TITLE
Senior Vice President of Power Products
COMPENSATION
$3M
AGE
58
TENURE
2 yrs

Michael Sondel

TITLE
Chief Accounting Officer & Principal Accounting Officer
AGE
41
TENURE
0.3 yrs

Dan Leibholz

TITLE
Chief Technology Officer
TENURE
0.2 yrs

Mike Lucarelli

TITLE
Director of Investor Relations

Marnie Seif

TITLE
Chief People Officer & Chief Legal Officer
AGE
57
TENURE
3.4 yrs
Board of Directors Tenure

Average tenure and age of the Analog Devices board of directors in years:

6.1
Average Tenure
63
Average Age
  • The tenure for the Analog Devices board of directors is about average.
Board of Directors

Vince Roche

TITLE
President
COMPENSATION
$11M
AGE
58
TENURE
6.1 yrs

Kenton Sicchitano

TITLE
Independent Director
COMPENSATION
$294K
AGE
74
TENURE
16.3 yrs

Ray Stata

TITLE
Founder & Chairman
COMPENSATION
$463K
AGE
84
TENURE
46.4 yrs

James Champy

TITLE
Presiding Director
COMPENSATION
$304K
AGE
75

Neil Novich

TITLE
Independent Director
COMPENSATION
$289K
AGE
63
TENURE
11.1 yrs

Lisa Su

TITLE
Independent Director
COMPENSATION
$276K
AGE
48
TENURE
7 yrs

Ed Frank

TITLE
Independent Director
COMPENSATION
$281K
AGE
62
TENURE
5 yrs

Bruce Evans

TITLE
Independent Director
COMPENSATION
$279K
AGE
59
TENURE
4 yrs

Mark Little

TITLE
Independent Director
COMPENSATION
$279K
AGE
65
TENURE
2.4 yrs

Karen Golz

TITLE
Director
COMPENSATION
$176K
AGE
63
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • Analog Devices insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
28. May 19 Sell Yusuf Jamal Individual 23. May 19 23. May 19 -1,748 $98.66 $-171,675
22. Mar 19 Sell Steven Pietkiewicz Individual 21. Mar 19 21. Mar 19 -4,575 $110.52 $-505,611
15. Mar 19 Sell Vincent Roche Individual 14. Mar 19 14. Mar 19 -15,505 $107.20 $-1,662,198
04. Mar 19 Sell Raymond Stata Individual 01. Mar 19 01. Mar 19 -20,000 $107.68 $-2,153,520
27. Feb 19 Sell Raymond Stata Individual 26. Feb 19 26. Feb 19 -20,000 $107.33 $-2,146,680
25. Feb 19 Sell Raymond Stata Individual 25. Feb 19 25. Feb 19 -10,000 $107.54 $-1,075,400
25. Feb 19 Sell Prashanth Mahendra-Rajah Individual 21. Feb 19 21. Feb 19 -2,556 $106.02 $-270,987
25. Feb 19 Sell Margaret Seif Individual 22. Feb 19 22. Feb 19 -10,000 $105.60 $-1,056,030
29. Nov 18 Sell Raymond Stata Individual 28. Nov 18 28. Nov 18 -10,000 $90.01 $-900,140
23. Nov 18 Sell Prashanth Mahendra-Rajah Individual 21. Nov 18 21. Nov 18 -2,700 $90.33 $-243,886
29. Aug 18 Sell Raymond Stata Individual 28. Aug 18 28. Aug 18 -20,000 $100.30 $-2,006,000
X
Management checks
We assess Analog Devices's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Analog Devices has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does Analog Devices, Inc.'s (NASDAQ:ADI) CEO Pay Reflect Performance?

Vince Roche has been the CEO of Analog Devices, Inc. … See our latest analysis for Analog Devices How Does Vince Roche's Compensation Compare With Similar Sized Companies? … Remuneration for Vince Roche is close enough to the median pay for a CEO of a large company.

Simply Wall St -

How Much Are Analog Devices, Inc. (NASDAQ:ADI) Insiders Taking Off The Table?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for Analog Devices Analog Devices Insider Transactions Over The Last Year The Founder & Chairman, Raymond Stata, made the biggest insider sale in the last 12 months. … Analog Devices Insiders Are Selling The Stock The last quarter saw substantial insider selling of Analog Devices shares. … Insider Ownership of Analog Devices I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders.

Simply Wall St -

A Look At The Fair Value Of Analog Devices, Inc. (NASDAQ:ADI)

We assume companies with shrinking free cash flow are will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $1.89k $2.37k $2.51k $2.64k $2.75k $2.86k $2.96k $3.06k $3.15k $3.25k Growth Rate Estimate Source Analyst x7 Analyst x6 Analyst x1 Est @ 5% Est @ 4.32% Est @ 3.84% Est @ 3.51% Est @ 3.27% Est @ 3.11% Est @ 3% Present Value ($, Millions) Discounted @ 9.84% $1.72k $1.96k $1.90k $1.81k $1.72k $1.63k $1.53k $1.44k $1.35k $1.27k Present Value of 10-year Cash Flow (PVCF)= $16.34b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … NasdaqGS:ADI Intrinsic value, May 10th 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Why Analog Devices, Inc. (NASDAQ:ADI) Is A Dividend Rockstar

While Analog Devices's 1.9% dividend yield is not the highest, we think its lengthy payment history is quite interesting. … There are a few simple ways to reduce the risks of buying Analog Devices for its dividend, and we'll go through these below. … Explore this interactive chart for our latest analysis on Analog Devices!

Simply Wall St -

Is Now The Time To Put Analog Devices (NASDAQ:ADI) On Your Watchlist?

In contrast to all that, I prefer to spend time on companies like Analog Devices (NASDAQ:ADI), which has not only revenues, but also profits. … Analog Devices's Earnings Per Share Are Growing. … I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats).

Simply Wall St -

How Good Is Analog Devices, Inc. (NASDAQ:ADI), When It Comes To ROE?

Analog Devices has a ROE of 13%, based on the last twelve months. … That means that for every $1 worth of shareholders' equity, it generated $0.13 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why We’re Not Keen On Analog Devices, Inc.’s (NASDAQ:ADI) 9.2% Return On Capital

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

The Analog Devices (NASDAQ:ADI) Share Price Is Up 98% And Shareholders Are Holding On

One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, Analog Devices achieved compound earnings per share (EPS) growth of 13% per year. … This EPS growth is reasonably close to the 15% average annual increase in the share price.

Simply Wall St -

Is It Time To Consider Buying Analog Devices, Inc. (NASDAQ:ADI)?

saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price

Simply Wall St -

Does Analog Devices, Inc.'s (NASDAQ:ADI) Stock Price Account For Its Growth?

Let’s look into this by assessing ADI's expected growth over the next few years. … See our latest analysis for Analog Devices? … According to the analysts covering the company, the following few years should bring about good growth prospects for Analog Devices

Simply Wall St -

Company Info

Description

Analog Devices, Inc. designs, manufactures, and markets integrated circuits (ICs), algorithms, software, and subsystems that leverage analog, mixed-signal, and digital signal processing technologies. The company offers data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; high-performance amplifiers to condition analog signals; and radio frequency and microwave ICs to support cellular infrastructure. It also provides power management and reference products for power management and conversion applications in the automotive, communications, industrial, and high-end consumer markets; and microelectromechanical systems technology solutions, including accelerometers used to sense acceleration, gyroscopes to sense rotation, and inertial measurement units to sense multiple degrees of freedom. In addition, the company offers isolators for various applications, such as universal serial bus isolation in patient monitors; and smart metering and satellite applications, as well as digital signal processing products for high-speed numeric calculations Its products are used in electronic equipment, including industrial process control systems, medical imaging equipment, factory automation systems, patient monitoring devices, instrumentation and measurement systems, wireless infrastructure equipment, energy management systems, networking equipment, aerospace and defense electronics, optical systems, automobiles, and portable electronic devices. The company serves clients in industrial, automotive, consumer, and communications markets through a direct sales force, third-party distributors, and independent sales representatives in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia, as well as through its Website. Analog Devices, Inc. was founded in 1965 and is headquartered in Norwood, Massachusetts.

Details
Name: Analog Devices, Inc.
ADI
Exchange: NasdaqGS
Founded: 1965
$41,058,286,646
369,761,227
Website: http://www.analog.com
Address: Analog Devices, Inc.
One Technology Way,
PO Box 9106,
Norwood,
Massachusetts, 02062,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ADI Common Stock Nasdaq Global Select US USD 02. Jan 1969
DB ANL Common Stock Deutsche Boerse AG DE EUR 02. Jan 1969
LSE 0HFN Common Stock London Stock Exchange GB USD 02. Jan 1969
WBAG ADI Common Stock Wiener Boerse AG AT EUR 02. Jan 1969
BMV ADI * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1969
Number of employees
Current staff
Staff numbers
15,800
Analog Devices employees.
Industry
Semiconductors
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/19 23:33
End of day share price update: 2019/06/19 00:00
Last estimates confirmation: 2019/06/15
Last earnings filing: 2019/05/22
Last earnings reported: 2019/05/04
Last annual earnings reported: 2018/11/03


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.