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Analog Devices Inc ADI

Morningstar Rating
$197.79 +4.46 (2.31%)
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Company Report

Analog Devices Earnings: We Maintain $196 Fair Value Estimate Amid Predictably Ugly Results

Wide-moat Analog Devices reported fiscal first-quarter results and provided investors with an outlook for the April quarter that came in predictably soft and comparable with peers, as many of ADI's customers are correcting their own chip inventory levels. ADI's guidance for the April quarter was modestly worse than our prior expectations but doesn't affect our long-term view of the company, as we anticipate that revenue will fully recover over the next year or two. We maintain our $196 fair value estimate and view shares as fairly valued.

Price vs Fair Value

ADI is trading at a 3% discount.
Price
$190.63
Fair Value
$552.00
Uncertainty
Medium
1-Star Price
$382.40
5-Star Price
$191.10
Economic Moat
Cdmg
Capital Allocation
Dyplswtlh

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

Trading Information

Previous Close Price
$193.33
Day Range
$193.93198.57
52-Week Range
$154.99202.77
Bid/Ask
$195.60 / $201.17
Market Cap
$98.09 Bil
Volume/Avg
3.1 Mil / 3.4 Mil

Key Statistics

Price/Earnings (Normalized)
19.62
Price/Sales
8.60
Dividend Yield (Trailing)
1.77%
Dividend Yield (Forward)
1.86%
Total Yield
4.31%

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

Competitors

Valuation

Metric
ADI
NXPI
TXN
Price/Earnings (Normalized)
19.6217.6624.90
Price/Book Value
2.767.379.37
Price/Sales
8.604.889.11
Price/Cash Flow
20.1515.8521.22
Price/Earnings
ADI
NXPI
TXN

Financial Strength

Metric
ADI
NXPI
TXN
Quick Ratio
0.861.203.27
Current Ratio
1.511.914.55
Interest Coverage
11.698.2322.01
Quick Ratio
ADI
NXPI
TXN

Profitability

Metric
ADI
NXPI
TXN
Return on Assets (Normalized)
6.60%15.37%22.56%
Return on Equity (Normalized)
9.05%44.97%43.06%
Return on Invested Capital (Normalized)
8.13%19.74%27.08%
Return on Assets
ADI
NXPI
TXN
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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NVDA
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TSM
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INTC
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TXN
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MU
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