This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Analog Devices Inc
ADI : : Technology
$56.32 | %
Today's Range: 55.88 - 57.63
Avg. Daily Volume: 2,106,900
04/29/16 - 4:00 PM ET

Financial Analysis


ANALOG DEVICES's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. ANALOG DEVICES is extremely liquid. Currently, the Quick Ratio is 7.01 which clearly shows the ability to cover any short-term cash needs. ADI managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.92% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)769.43771.99
EBITDA ($mil)265.53294.66
EBIT ($mil)213.97238.14
Net Income ($mil)164.5178.76


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)3789.472873.28
Total Assets ($mil)7598.086821.16
Total Debt ($mil)1730.95872.93
Equity ($mil)4994.864806.21


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin66.4869.86
EBITDA Margin34.538.16
Operating Margin27.8130.85
Sales Turnover0.450.44
Return on Assets8.989.6
Return on Equity13.6613.63
Debt Q1 FY16 Q1 FY15
Current Ratio7.826.01
Debt/Capital0.260.15
Interest Expense13.066.66
Interest Coverage16.3835.78


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)310.02311.63
Div / share0.40.37
EPS0.520.57
Book value / share16.1115.42
Institutional Own % n/a n/a
Avg Daily Volume2120953.02820170.0

Valuation


BUY. ANALOG DEVICES's P/E ratio indicates a premium compared to an average of 20.97 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 23.99. To use another comparison, its price-to-book ratio of 3.59 indicates a premium versus the S&P 500 average of 2.74 and a discount versus the industry average of 3.96. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ADI 26.91 Peers 20.97   ADI 18.81 Peers 15.20

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

ADI is trading at a significant premium to 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ADI 18.05 Peers 17.98   ADI 1.00 Peers 2.68

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ADI 3.59 Peers 3.96   ADI 3.86 Peers 28.70

Average. 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 valuation on par with 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 5.23 Peers 4.06   ADI 14.09 Peers 5.29

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.

 

 

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free

Latest Stock Upgrades/Downgrades


Top Rated Stocks Top Rated Funds Top Rated ETFs