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Analog Devices Inc ADI

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Stock XNAS Rating as of
$234.49 +4.49 (1.95%)
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Company Report

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Analog Devices Earnings: Raising Fair Value Estimate to $225 From $196 as Demand Improves

Brian Colello

Wide-moat Analog Devices reported fiscal second-quarter results that were admirable amid the current chip industry downturn and came in ahead of guidance. Further, ADI's forecast for the July quarter calls for growth and suggests that the bottom is in sight for the business. We raise our fair value estimate to $225 from $196 as we boost our long-term profitability assumptions for the firm. Shares were up as much as 8% after the earnings report, and we view the stock as fairly valued.

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Price vs Fair Value

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ADI is trading at a 895% premium.
Price
$234.49
Fair Value
$845.00
Uncertainty
Medium
1-Star Price
$247.91
5-Star Price
$434.50
Economic Moat
Hpb
Capital Allocation
Qyffzqfmz

Bulls Say, Bears Say

Bulls

Analog Devices has tens of thousands of customers and is not reliant on the fortunes of any single chip buyer.

Bears

Despite its strong position and diverse exposure, Analog Devices is still vulnerable to the cyclicality of the overall semiconductor industry.

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News

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Trading Information

Previous Close Price
$230.00
Day Range
$227.65–234.73
52-Week Range
$154.99–241.88
Bid/Ask
$234.75 / $235.00
Market Cap
$116.36 Bil
Volume/Avg
6.5 Mil / 3.4 Mil

Key Statistics

Price/Earnings (Normalized)
30.73
Price/Sales
11.21
Dividend Yield (Trailing)
1.49%
Dividend Yield (Forward)
1.57%
Total Yield
2.83%

Company Profile

Analog Devices is a leading analog, mixed signal, and digital signal processing chipmaker. The firm has a significant market share lead in converter chips, which are used to translate analog signals to digital and vice versa. The company serves tens of thousands of customers, and more than half of its chip sales are made to industrial and automotive end markets. Analog Devices' chips are also incorporated into wireless infrastructure equipment.
Sector
Technology
Industry
Semiconductors
Stock Style Box
Large Core
Total Number of Employees
26,000
Website
https://www.analog.com

Competitors

Valuation

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Metric
ADI
NXPI
TXN
Price/Earnings (Normalized)
 30.7319.8631.11
Price/Book Value
 3.308.1110.49
Price/Sales
 11.215.4910.67
Price/Cash Flow
 27.3917.9126.31
Price/Earnings
ADI
NXPI
TXN

Financial Strength

Metric
ADI
NXPI
TXN
Quick Ratio
 1.021.353.68
Current Ratio
 1.582.354.91
Interest Coverage
 8.608.4117.87
Quick Ratio
ADI
NXPI
TXN

Profitability

Metric
ADI
NXPI
TXN
Return on Assets (Normalized)
 5.22%15.38%22.56%
Return on Equity (Normalized)
 7.17%43.57%43.06%
Return on Invested Capital (Normalized)
 6.52%19.62%27.08%
Return on Assets
ADI
NXPI
TXN
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