Analog Devices IncFind Ratings Reports
ANALOG DEVICES's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. ANALOG DEVICES is extremely liquid. Currently, the Quick Ratio is 6.27 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.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.61% 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 FY16||Q3 FY15|
|Net Sales ($mil)||869.59||863.37|
|Net Income ($mil)||230.43||216.48|
|Balance Sheet||Q3 FY16||Q3 FY15|
|Cash & Equiv. ($mil)||3803.43||3099.96|
|Total Assets ($mil)||7685.05||7134.7|
|Total Debt ($mil)||1731.76||873.2|
|Profitability||Q3 FY16||Q3 FY15|
|Gross Profit Margin||70.08||70.07|
|Return on Assets||8.61||9.94|
|Return on Equity||13.28||14.0|
|Debt||Q3 FY16||Q3 FY15|
|Share Data||Q3 FY16||Q3 FY15|
|Shares outstanding (mil)||307.47||313.68|
|Div / share||0.42||0.4|
|Book value / share||16.21||16.15|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2358011.0||1907316.0|
BUY. This stock's P/E ratio indicates a significant discount compared to an average of 42.11 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 25.13. To use another comparison, its price-to-book ratio of 3.87 indicates a premium versus the S&P 500 average of 2.82 and a discount versus the industry average of 4.25. 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 29.73||Peers 42.11||ADI 19.43||Peers 17.36|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
ADI is trading at a significant discount 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 19.06||Peers 19.40||ADI 0.92||Peers 2.66|
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 3.87||Peers 4.25||ADI -5.81||Peers -2.21|
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 5.68||Peers 5.14||ADI 3.84||Peers 3.97|
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 premium to its industry on this measurement.
Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.
ADI is keeping pace with its peers on the basis of sales growth.