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Fundamental analysis: Analog Devices, Inc. (ADI)

Awarener score: 5.6

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Poor) and growth (Very good), and the company's inclination to return cash to the stockholders (Very poor).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

  • Business has been growing at a very good pace. It's been more than average in relation to peer companies.
  • Analog Devices, Inc. business varies, ups and downs are rather normal. Risk is sufficient. It looks worse than most rivals.

Margins score: 9.2

  • ADI profit margins -on goods and services sold- are usually excellent. They stand better than most rival companies.
  • Business profit on sales tends to be huge. It's great when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain excellent in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still better than most similar companies.
  • Profits -before income taxes- are usually excellent considering total sales, and remain great when measured against rivals.
  • Total net profit tends to be excellent when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 4.4

  • Analog Devices, Inc. profit -on goods and services sold- has been growing at a normal pace. It's been close to average when compared to competitors.
  • In recent years, earnings -on operations- have been growing at a very low step, which has been mediocre against comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a normal pace, which compares weak when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a very low tempo. It turns to be in a weak position compared to similar stocks.
  • In past years, profits -before income taxes- grew at a very low speed. It was mediocre against rivals.
  • In the previous years, growth on total net profit has been very low, and weak when measured against peer companies.
  • Earnings per share have been almost stagnant in past years. It's been in a weak position compared to industry peers.

Miscellaneous score: 6.7

  • ADI managed to pay little to no income taxes on profits made in the past years. It's been somewhat better than peers.
  • Research and development expenses consume a moderate portion of revenues. It's similar to competitors.
  • The company grows modestly in relation to research and development efforts. It stands a slight improvement compared to rival companies.

Profitability score: 8.2

  • Analog Devices, Inc. usually gets very good returns on the resources it controls. It proves similar to peer firms.
  • The company normally gets good proceeds -on the resources directly invested in the business-. They remain rather normal in relation to similar companies.
  • There's usually abundant profitability -in relation to owned resources-. It ranks almost average when measured against competitors.
  • In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 4.6

  • ADI usually uses a portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is rather normal. It stands top tier when measured against rival firms.
  • The company is usually sparsely replacing property, plant, and equipment that gets old, instead using funds in something else. It can't keep forever, which is substantially worse when measured against industry peers.
  • In the past twelve months it paid run-of-the-mill dividends, considering the current stock price. It came slightly better than competitors.
  • Has somewhat increased dividend payments in the past years. Business prospects may have improved. The company has behaved in a weak position compared to similar firms.
  • The company usually uses some portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects take a nosedive. Sustainability looks mediocre against comparable companies.
  • The company usually significantly enlarges the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a very weak position compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
  • The company uses a large portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks below average when measured against competitors.

Balance Sheet score: 4.7

  • Analog Devices, Inc. intangible assets (like brands and goodwill) represent a very large portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
  • The company has roughly double short-term resources than short-term obligations. Liquidity concerns are normally not an issue. It turns to be in a weak position compared to similar firms.
  • Roughly a tenth of resources controlled were provided for with financial debt. Creditors have minor claims on the company, and financial position is safe. It remains somewhat better than rival firms.
  • Controlled resources might be only very slowly turned into cash and equivalents, which is riskier. It looks last-in-rank when measured against rivals.
  • For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's in a weak position compared to peer firms.
  • For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is mediocre against similar enterprises.
  • Usually, sales are on a two-months credit. It still ranks below average when measured against peers.
  • Normally has approximately three months of sales worth in inventory. It comes up as rather normal in relation to competitors.
  • On average, it takes higher than five months from the purchase to charging customers. It happens to be slightly better than peers.
  • On average pays suppliers after a month and a half from the purchase. It ranks weak when measured against industry peers.
  • The company pays its suppliers four months or more before charging its customers, so there's significant money invested in working capital. It's close to average when compared to similar companies.
  • Net interest expenses consume a minor portion of usual business earnings, and are easily bearable. It stands somewhat worse than rival firms.
  • Business earnings have usually been good when measured against loans taken. Cutting back reinvesting in the business, it could take less than three years to repay the obligations with current profitability. It ranks below average when measured against comparable enterprises.
  • Revenues are reasonable in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks rather normal in relation to similar firms.
  • Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still bottom tier against peer companies.

Valuation score: 4.3

  • Analog Devices, Inc. looks heavily expensive in relation to profits and financial position. It happens to be substantially worse when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
  • In the past twelve months, the company generated some good free funds in relation to the stock price, which stands slightly worse than similar companies.
  • The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still almost average when measured against industry firms.
  • In the past twelve months, the company has largely enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among a lot more stockholders. It came up a disappointment compared to peer ventures.
  • The company has barely more debt than cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks mediocre against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks substantially worse when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very large relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks in a very weak position compared to rival firms.
  • The relation between the stock price and accounting book value is high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains well ranked against peer firms.
  • In the past twelve months, the operating business lost a little money. It happens to be below average when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still close to average when compared to peer companies.

Total score: 5.9


ADI logos

Company at a glance: Analog Devices, Inc. (ADI)

Sector, industry: Technology, Semiconductors

Market Cap: 73.00 billions

Revenues TTM: 11.11 billions

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. In addition, the company offers digital signal processing and system products for high-speed numeric calculations. It serves clients in the industrial, automotive, consumer, instrumentation, aerospace, and communications markets through a direct sales force, third-party distributors, and independent sales representatives in the United States, the rest of North and South America, Europe, Japan, China, and rest of Asia, as well as through its Website. Analog Devices, Inc. was incorporated in 1965 and is headquartered in Wilmington, Massachusetts.

Awarener score: 5.6

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Poor) and growth (Very good), and the company's inclination to return cash to the stockholders (Very poor).