Analog Devices, Inc. [NASDAQ:ADI]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Analog Devices, Inc. [ADI], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in October. On average, stock market experts give ADI an Outperform rating. Its stock price has been found in the range of 76.62 to 118.54. This is compared to its latest closing price of $104.70.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Analog Devices, Inc. [ADI] is sitting at 2.18. This is compared to 1 month ago, when its average rating was 2.19.
For the quarter ending in Jan-19 Analog Devices, Inc. [ADI] generated $1.54 billion in sales. That’s 2.05% higher than the average estimate of $1.51 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Wed 22 May (In 5 Days).
Fundamental Analysis of Analog Devices, Inc. [ADI]
Now let’s turn to look at profitability: with a current Operating Margin for Analog Devices, Inc. [ADI] sitting at +31.34 and its Gross Margin at +61.35.
This company’s Return on Total Capital is 11.00, and its Return on Invested Capital has reached 10.20%. Its Return on Equity is 14.09, and its Return on Assets is 7.16. These metrics suggest that this Analog Devices, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Analog Devices, Inc. [ADI] has generated a Total Debt to Total Equity ratio of 57.63. Similarly, its Total Debt to Total Capital is 36.56, while its Total Debt to Total Assets stands at 30.97. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 57.02, and its Long-Term Debt to Total Capital is 36.17. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 16.86 and its Total Debt to EBITDA Value is 2.31. The Enterprise Value to Sales for this firm is now 7.43, and its Total Debt to Enterprise Value stands at 0.17. Analog Devices, Inc. [ADI] has a Price to Book Ratio of 2.94, a Price to Cash Flow Ratio of 13.38 and P/E Ratio of 24.29. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Analog Devices, Inc. [ADI] earns $392,465 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 9.33 and its Total Asset Turnover is 0.30. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.08 and its Current Ratio is 1.50. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Analog Devices, Inc. [ADI] has 368.15M shares outstanding, amounting to a total market cap of $38.55B. Its stock price has been found in the range of 76.62 to 118.54. At its current price, it has moved by -13.79% from its 52-week high, and it has moved 33.37% from its 52-week low.
This stock’s Beta value is currently 1.27, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 32.94. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Analog Devices, Inc. [ADI] a Reliable Buy?
Shares of Analog Devices, Inc. [ADI], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.