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.
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|Income Statement||Q1 FY16||Q1 FY15|
|Net Sales ($mil)||769.43||771.99|
|Net Income ($mil)||164.5||178.76|
|Balance Sheet||Q1 FY16||Q1 FY15|
|Cash & Equiv. ($mil)||3789.47||2873.28|
|Total Assets ($mil)||7598.08||6821.16|
|Total Debt ($mil)||1730.95||872.93|
|Profitability||Q1 FY16||Q1 FY15|
|Gross Profit Margin||66.48||69.86|
|Return on Assets||8.98||9.6|
|Return on Equity||13.66||13.63|
|Debt||Q1 FY16||Q1 FY15|
|Share Data||Q1 FY16||Q1 FY15|
|Shares outstanding (mil)||310.02||311.63|
|Div / share||0.4||0.37|
|Book value / share||16.11||15.42|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2120953.0||2820170.0|
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.
|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.
|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.
|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.
|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.
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