Semiconductors & Related Devices
Analog Devices, Inc. designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems that leverage analog, mixed-signal, and digital signal processing technologies. The company 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 high-end consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs. It also offers high-performance 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, the company provides digital signal processing and system products for high-speed numeric calculations. It serves clients in the industrial, automotive, consumer, instrumentation, aerospace, and communications markets through a direct sales force, third-party distributors, and independent sales representatives in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia, as well as through its Website. Analog Devices, Inc. was incorporated in 1965 and is headquartered in Wilmington, Massachusetts.
Discounted Cash Flow Valuation of Analog Devices Inc
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is +22.89%.
The trend of Net Margin over the past 5 years is +0.35%.
The average ROA over the past 5 years is +6.98%.
The trend of ROA over the past 5 years is -0.44%.
The average ROE over the past 5 years is +9.31%.
The trend of ROE over the past 5 years is -1.14%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is 1.80.
The trend of Debt/FCF over the past 5 years is -0.24.
Graham’s Stability measure stands at 0.99.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is +14.69%.
The trend of Revenue growth rate over the past 5 years is +0.98%.
The Earnings CAGR over the past 5 years is +17.35%.
The trend of Earnings growth rate over the past 5 years is +3.42%.
The Equity CAGR over the past 5 years is +26.48%.
The trend of Equity growth rate over the past 5 years is +3.01%.
The FCF CAGR over the past 5 years is +10.21%.
The trend of FCF growth rate over the past 5 years is -1.48%.