Analog Devices Inc

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ADI : NASDAQ : Technology
$79.07 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 3459100.0
08/23/17 - 4:00 PM ET

Financial Analysis


ANALOG DEVICES's gross profit margin for the second quarter of its fiscal year 2017 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased. ANALOG DEVICES has average liquidity. Currently, the Quick Ratio is 1.25 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 104.49% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1147.98778.77
EBITDA ($mil)540.52292.0
EBIT ($mil)411.28240.08
Net Income ($mil)93.56170.57


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)6188.373754.08
Total Assets ($mil)26622.687570.29
Total Debt ($mil)12893.531731.34
Equity ($mil)9966.64873.7


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin74.1970.22
EBITDA Margin47.0837.49
Operating Margin35.8330.83
Sales Turnover0.150.45
Return on Assets3.148.55
Return on Equity8.413.29
Debt Q2 FY17 Q2 FY16
Current Ratio1.386.76
Debt/Capital0.560.26
Interest Expense71.6418.46
Interest Coverage5.7413.01


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)367.01307.35
Div / share0.450.42
EPS0.270.55
Book value / share27.1615.86
Institutional Own % n/a n/a
Avg Daily Volume3453369.03319623.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 32.08 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 24.23. To use another comparison, its price-to-book ratio of 2.86 indicates valuation on par with the S&P 500 average of 3.02 and a significant discount versus the industry average of 5.24. 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 29.27 Peers 32.08   ADI 16.58 Peers 18.72

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ADI 16.86 Peers 20.52   ADI 0.50 Peers 1.09

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

ADI is trading at a discount 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 2.86 Peers 5.24   ADI 29.26 Peers 51.84

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ADI 7.11 Peers 5.04   ADI 18.15 Peers 27.02

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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