About Analog Devices, Inc.
Analog Devices, Inc. engages in the design, manufacture, testing, and marketing of integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia. It provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs. The company also offers amplifiers to condition analog signals; and radio frequency and microwave ICs to support cellular infrastructure; and micro-electro-mechanical systems technology solutions, including accelerometers used to sense acceleration, gyroscopes for sense rotation, inertial measurement units to sense multiple degrees of freedom, and broadband switches for radio and instrument systems, as well as isolators. In addition, it provides digital signal processing and system products for numeric calculations. The company serves clients in the industrial, automotive, consumer, instrumentation, aerospace, defense and healthcare, and communications markets through a direct sales force, third-party distributors, and independent sales representatives, as well as online. The company was incorporated in 1965 and is headquartered in Wilmington, Massachusetts.
Analog Devices, Inc. (ADI) is a Technology company in the Semiconductors industry with a market capitalisation of $191.2B. The stock trades at 46.39x trailing earnings and yields 1.1%.
- Sector
- Technology
- Industry
- Semiconductors
- Market cap
- $191.2B
- P/E ratio
- 46.39
- EPS (TTM)
- $4.56
- Revenue (TTM)
- $11B
- Free cash flow
- $4.3B
- Profit margin
- 20.6%
- Dividend yield
- 1.1%
- Shares outstanding
- 484.6M
Financial health: Strong8/10
8 strengths, 2 concerns. Weakest points: return on equity, payout ratio.
- Debt to equity: 0.24 (Strong, benchmark < 0.5) — Debt of 0.24x equity is conservative against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 1.1y (Strong, benchmark < 4 years) — Net debt of $4.5B is 1.1x annual free cash flow — about a year of cash flow to repay.
- Current ratio: 2.19 (Strong, benchmark > 1.5) — Short-term assets cover 2.19x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 4 years.
- Return on equity: 6.7% (Concern, benchmark > 15%) — Earns 6.7% on shareholder equity, well short of the > 15% mark.
- Gross margin: 61.5% (Strong, benchmark > 40%) — Keeps 61.5% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 20.6% (Strong, benchmark > 10%) — Turns 20.6% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $4.3B (Strong, benchmark positive) — Generated $4.3B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 16.9% (Strong, benchmark > 10%) — Revenue changed 16.9% year on year, comfortably past the > 10% mark.
- Earnings growth: 38.6% (Strong, benchmark > 10%) — Earnings changed 38.6% year on year, comfortably past the > 10% mark.
- Payout ratio: 84.9% (Concern, benchmark < 60%) — Pays out 84.9% of earnings as dividends — above the level usually considered sustainable.