ANALOG DEVICES's gross profit margin for the third 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 3.36 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.15% 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||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||863.37||727.75|
|Net Income ($mil)||216.48||180.61|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||3099.96||4932.26|
|Total Assets ($mil)||7134.7||8973.47|
|Total Debt ($mil)||873.2||2868.05|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||70.07||70.41|
|Return on Assets||9.94||8.04|
|Return on Equity||14.0||14.42|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||313.68||314.21|
|Div / share||0.4||0.37|
|Book value / share||16.15||15.94|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2670818.0||2386721.0|
BUY. ANALOG DEVICES's P/E ratio indicates a premium compared to an average of 23.79 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 20.03. To use another comparison, its price-to-book ratio of 3.50 indicates a premium versus the S&P 500 average of 2.67 and a discount versus the industry average of 4.39. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, ANALOG DEVICES seems to be trading at a premium to investment alternatives within the industry.
|ADI 25.21||Peers 23.79||ADI 18.08||Peers 15.18|
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 premium to its peers.
|ADI 16.86||Peers 16.91||ADI 0.51||Peers 0.75|
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 significant discount to its peers.
|ADI 3.50||Peers 4.39||ADI -1.76||Peers 48.51|
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.
|ADI 5.42||Peers 3.79||ADI 19.86||Peers 13.57|
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 significantly exceeds its peers.
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