Fact based stock research
Analog Devices (NasdaqGS:ADI)

US0326541051

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Analog Devices stock research in summary

analog.com

ANALYSIS: With an Obermatt Combined Rank of 67 (better than 67% compared with investment alternatives), Analog Devices (Semiconductors, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Analog Devices are a good value (attractively priced) with a consolidated Value Rank of 69 (better than 69% of alternatives), show above-average growth (Growth Rank of 74) but are riskily financed (Safety Rank of 34), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 67, is a buy recommendation based on Analog Devices's financial characteristics. As the company Analog Devices's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 69) and above-average growth (Obermatt Growth Rank of 74), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 34) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	69
Growth Rank	74
Safety Rank	34
Combined Rank	67

Country	USA
Industry	Semiconductors
Index	Dividends USA, Employee Focus US, SDG 13, SDG 3, SDG 7, SDG 8, SDG 9, NASDAQ 100, NASDAQ, S&P 500
Size class	X-Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Analog Devices

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	28	85	67	69
GROWTH
GROWTH	45	11	43	74
SAFETY
SAFETY	11	41	40	34
SENTIMENT
SENTIMENT	n/a	22	29	^new
360° VIEW
360° VIEW	n/a	15	42	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 2-Nov-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Analog Devices is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	28	85	67	69
GROWTH
GROWTH	45	11	43	74
SAFETY
SAFETY	11	41	40	34
COMBINED
COMBINED	7	36	47	67

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Analog Devices the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 69 (better than 69% compared with alternatives), Analog Devices shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Analog Devices. Expected dividend yields are higher than for 93% of comparable companies (a Dividend Yield rank of 93), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 54, which means that the stock price is lower compared with invested capital than for 54% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 14 which means that the stock price compared with what market professionals expect for future profits is higher than for 86% of comparable companies, indicating a low value concerning Analog Devices's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Analog Devices with a rank of 44. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 56% of comparable companies, indicating a low value concerning Analog Devices's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 69, is a buy recommendation based on Analog Devices's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Analog Devices may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	14	29	17	14
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	23	49	40	44
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	30	74	56	54
DIVIDEND YIELD
DIVIDEND YIELD	60	91	93	93
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	28	85	67	69

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Analog Devices; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 74 (better than 74% compared with alternatives), Analog Devices shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for Analog Devices. Sales Growth has a value of 61, which means that, currently, professionals expect the company to grow more than 61% of its competitors. The same is valid for Profit Growth with a value of 59 and for Capital Growth with 51. In addition, Stock Returns had an above-average rank value of 65, which means they have been higher than 65% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 74, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Analog Devices exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	62	14	58	61
PROFIT GROWTH
PROFIT GROWTH	89	62	34	59
CAPITAL GROWTH
CAPITAL GROWTH	n/a	12	36	51
STOCK RETURNS
STOCK RETURNS	53	47	61	65
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	45	11	43	74

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Analog Devices.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 34 (better than 34% compared with alternatives), the company Analog Devices has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Analog Devices is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Analog Devices. Leverage is at a rank of 56, meaning the company has a below-average debt-to-equity ratio. It has less debt than 56% of its competitors. Liquidity is also good at a rank of 61, meaning the company generates more profit to service its debt than 61% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 13, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 87% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 34 (worse than 66% compared with alternatives), Analog Devices has a financing structure that is riskier than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Analog Devices. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Analog Devices and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	50	62	60	56
REFINANCING
REFINANCING	13	11	7	13
LIQUIDITY
LIQUIDITY	28	60	62	61
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	11	41	40	34

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Analog Devices and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	87	84	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	42	4	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	8	57	^new
MARKET PULSE
MARKET PULSE	n/a	22	20	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	22	29	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Analog Devices.
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