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Analog Devices Inc
ADI : NASDAQ : Technology
$56.71 0.05 | 0.09%
Today's Range: 56.56 - 56.98
Avg. Daily Volume: 2,735,600
12/24/14 - 1:00 PM ET

Financial Analysis


ANALOG DEVICES's gross profit margin for the fourth quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. ANALOG DEVICES is extremely liquid. Currently, the Quick Ratio is 4.60 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY14 Q4 FY13
Net Sales ($mil)814.25678.13
EBITDA ($mil)329.25243.38
EBIT ($mil)272.15215.81
Net Income ($mil)108.7201.55


Balance Sheet Q4 FY14 Q4 FY13
Cash & Equiv. ($mil)2866.474682.91
Total Assets ($mil)6859.696381.75
Total Debt ($mil)872.79872.24
Equity ($mil)4757.94739.58


Profitability Q4 FY14 Q4 FY13
Gross Profit Margin70.2869.66
EBITDA Margin40.4335.89
Operating Margin33.4231.82
Sales Turnover0.420.41
Return on Assets9.1710.55
Return on Equity13.2214.2
Debt Q4 FY14 Q4 FY13
Current Ratio5.389.59
Debt/Capital0.160.16
Interest Expense13.166.66
Interest Coverage20.6832.41


Share Data Q4 FY14 Q4 FY13
Shares outstanding (mil)311.21311.05
Div / share0.370.34
EPS0.340.64
Book value / share15.2915.24
Institutional Own % n/a n/a
Avg Daily Volume2755801.01799551.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 31.13 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 19.99. To use another comparison, its price-to-book ratio of 3.73 indicates a premium versus the S&P 500 average of 2.76 and a discount versus the industry average of 4.53. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, ANALOG DEVICES proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ADI 28.82 Peers 31.13   ADI 20.37 Peers 14.58

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

ADI is trading at a valuation on par with its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ADI is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ADI 18.11 Peers 19.13   ADI 0.66 Peers 0.69

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

ADI is trading at a valuation on par with its peers.

 

Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

ADI trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ADI 3.73 Peers 4.53   ADI -7.48 Peers 53.54

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ADI is trading at a discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, ADI is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ADI 6.20 Peers 4.20   ADI 8.77 Peers 16.49

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ADI is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ADI significantly trails its peers on the basis of sales growth

 

 

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