ANALOG DEVICES's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ANALOG DEVICES is extremely liquid. Currently, the Quick Ratio is 3.26 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.
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||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||821.02||694.54|
|Net Income ($mil)||205.34||187.43|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||3074.78||4807.23|
|Total Assets ($mil)||7048.48||6594.95|
|Total Debt ($mil)||873.06||872.52|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||70.56||70.0|
|Return on Assets||9.55||10.88|
|Return on Equity||13.56||14.55|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||313.54||314.15|
|Div / share||0.4||0.37|
|Book value / share||15.83||15.7|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2375761.0||2137024.0|
BUY. The current P/E ratio indicates a discount compared to an average of 28.23 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 21.18. Conducting a second comparison, its price-to-book ratio of 3.79 indicates a premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 6.08. 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.
|ADI 28.19||Peers 28.23||ADI 18.91||Peers 22.75|
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.
Discount. 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 discount to its peers.
|ADI 18.36||Peers 17.84||ADI 0.61||Peers 0.82|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
ADI is trading at a premium to its peers.
Discount. 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 discount to its peers.
|ADI 3.79||Peers 6.08||ADI -6.17||Peers 59.85|
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 significant 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.
|ADI 6.01||Peers 4.15||ADI 17.19||Peers 15.26|
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.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
ADI has a sales growth rate that exceeds its peers.
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