Analog Devices, Inc.
Analog Devices, Inc. Fundamental Analysis
Analog Devices, Inc. (ANL.DE) shows moderate financial fundamentals with a PE ratio of 57.58, profit margin of 23.02%, and ROE of 7.92%. The company generates $11.7B in annual revenue with strong year-over-year growth of 16.89%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ANL.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakANL.DE struggles to generate sufficient returns from assets.
Valuation Score
WeakANL.DE trades at a premium to fair value.
Growth Score
ExcellentANL.DE delivers strong and consistent growth momentum.
Financial Health Score
ExcellentANL.DE maintains a strong and stable balance sheet.
Profitability Score
ModerateANL.DE maintains healthy but balanced margins.
Key Financial Metrics
Is ANL.DE Expensive or Cheap?
P/E Ratio
ANL.DE trades at 57.58 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ANL.DE's PEG of 2.50 indicates potential overvaluation.
Price to Book
The market values Analog Devices, Inc. at 4.61 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.05 times EBITDA. This signals the market has high growth expectations.
How Well Does ANL.DE Make Money?
Net Profit Margin
For every $100 in sales, Analog Devices, Inc. keeps $23.02 as profit after all expenses.
Operating Margin
Core operations generate 29.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.92 in profit for every $100 of shareholder equity.
ROA
Analog Devices, Inc. generates $5.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Analog Devices, Inc. generates strong operating cash flow of $5.05B, reflecting robust business health.
Free Cash Flow
Analog Devices, Inc. generates strong free cash flow of $4.55B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.33 in free cash annually.
FCF Yield
ANL.DE converts 2.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
57.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
13.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How ANL.DE Stacks Against Its Sector Peers
| Metric | ANL.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 57.58 | 35.89 | Worse (Expensive) |
| ROE | 7.92% | 1172.00% | Weak |
| Net Margin | 23.02% | -134190.00% (disorted) | Strong |
| Debt/Equity | 0.26 | 7.86 | Strong (Low Leverage) |
| Current Ratio | 1.76 | 5.79 | Neutral |
| ROA | 5.64% | -309362.00% (disorted) | Weak |
ANL.DE outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Analog Devices, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
46.65%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
38.49%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
78.65%
Industry Style: Growth, Innovation, High Beta
High Growth