Analog Devices, Inc. (ADI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

NVIDIA Corp.

Advanced Micro Devices, Inc.

Broadcom Inc.

Micron Technology, Inc.

Marvell Technology, Inc.

Analog Devices, Inc.

Texas Instruments Incorporated

Intel Corp.

QUALCOMM, Inc.

NXP Semiconductors NV

Microchip Technology, Inc.

Why is Analog Devices, Inc. ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.12 times

Healthy long term growth as Net Sales has grown by an annual rate of 13.48% and Operating profit at 12.33%

Positive results in Jul 25

INTEREST COVERAGE RATIO(Q) Highest at 1,731.9
NET PROFIT(HY) At USD 1,092.83 MM has Grown at 53.61%
DIVIDEND PER SHARE(HY) Highest at USD 7.75

With ROCE of 5.79%, it has a very expensive valuation with a 2.89 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 12.72%, its profits have fallen by -16.6%

High Institutional Holdings at 91.93%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Analog Devices, Inc. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Analog Devices, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Analog Devices, Inc.

25.15%

0.18

39.50%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.48%

EBIT Growth (5y)

12.33%

EBIT to Interest (avg)

11.50

Debt to EBITDA (avg)

1.12

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

0.25

Tax Ratio

8.47%

Dividend Payout Ratio

110.40%

Pledged Shares

Institutional Holding

91.93%

ROCE (avg)

8.11%

ROE (avg)

8.32%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.15

EV to EBIT

49.94

EV to EBITDA

26.33

EV to Capital Employed

2.89

EV to Sales

11.72

PEG Ratio

Dividend Yield

1.79%

ROCE (Latest)

5.79%

ROE (Latest)

5.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,731.9

NET PROFIT(HY)

At USD 1,092.83 MM has Grown at 53.61%

DIVIDEND PER SHARE(HY)

Highest at USD 7.75

RAW MATERIAL COST(Y)

Fallen by -15.02% (YoY

CASH AND EQV(HY)

Highest at USD 5,845.52 MM

NET SALES(Q)

Highest at USD 2,880.35 MM

OPERATING PROFIT(Q)

Highest at USD 1,313.84 MM

OPERATING PROFIT MARGIN(Q)

Highest at 45.61 %

PRE-TAX PROFIT(Q)

Highest at USD 767.76 MM

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Analog Devices, Inc.

Interest Coverage Ratio

Highest at 1,731.9 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

At USD 1,092.83 MM has Grown at 53.61%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Dividend per share

Highest at USD 7.75 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 2,880.35 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Net Sales

At USD 2,880.35 MM has Grown at 17.34%

over average net sales of the previous four periods of USD 2,454.66 MM

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 1,313.84 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 45.61 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 767.76 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 767.76 MM has Grown at 47.53%

over average net sales of the previous four periods of USD 520.4 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Cash and Eqv

Highest at USD 5,845.52 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -15.02% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales