Analog Devices Current Valuation vs. Net Income
| ADI Stock | USD 355.79 1.44 0.41% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.49 | 0.6587 |
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| Net Profit Margin | 0.13 | 0.2179 |
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| Operating Profit Margin | 0.16 | 0.2674 |
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| Pretax Profit Margin | 0.16 | 0.2341 |
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| Return On Assets | 0.0671 | 0.0569 |
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| Return On Equity | 0.096 | 0.1017 |
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For Analog Devices profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Analog Devices to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Analog Devices utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Analog Devices's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Analog Devices over time as well as its relative position and ranking within its peers.
Analog Devices' Revenue Breakdown by Earning Segment
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Analog Devices Revenue Breakdown by Earning Segment
By analyzing Analog Devices' earnings estimates, investors can diagnose different trends across Analog Devices' analyst sentiment over time as well as compare current estimates against different timeframes.
Is there potential for Semiconductors & Semiconductor Equipment market expansion? Will Analog introduce new products? Factors like these will boost the valuation of Analog Devices. If investors know Analog will grow in the future, the company's valuation will be higher. Understanding fair value requires weighing current performance against future potential. All the valuation information about Analog Devices listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.167 | Dividend Share 4.07 | Earnings Share 4.55 | Revenue Per Share | Quarterly Revenue Growth 0.304 |
Understanding Analog Devices requires distinguishing between market price and book value, where the latter reflects Analog's accounting equity. The concept of intrinsic value - what Analog Devices' is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Analysts utilize numerous techniques to assess fundamental value, seeking to purchase shares when trading prices fall beneath estimated intrinsic worth. Market sentiment, economic cycles, and investor behavior can push Analog Devices' price substantially above or below its fundamental value.
Understanding that Analog Devices' value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Analog Devices represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. In contrast, Analog Devices' trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.
Analog Devices Net Income vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Analog Devices's current stock value. Our valuation model uses many indicators to compare Analog Devices value to that of its competitors to determine the firm's financial worth. Analog Devices is rated third in current valuation category among its peers. It is rated fourth in net income category among its peers making up about 0.01 of Net Income per Current Valuation. The ratio of Current Valuation to Net Income for Analog Devices is roughly 78.58 . As of now, Analog Devices' Net Income is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Analog Devices' earnings, one of the primary drivers of an investment's value.Analog Devices' Earnings Breakdown by Geography
Analog Current Valuation vs. Competition
Analog Devices is rated third in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is presently estimated at about 1.13 Trillion. Analog Devices retains roughly 178.16 Billion in current valuation claiming about 16% of equities under Information Technology industry.
Analog Net Income vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Analog Devices |
| = | 178.16 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Analog Devices |
| = | 2.27 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Analog Net Income Comparison
Analog Devices is currently under evaluation in net income category among its peers.
Analog Devices Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Analog Devices, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Analog Devices will eventually generate negative long term returns. The profitability progress is the general direction of Analog Devices' change in net profit over the period of time. It can combine multiple indicators of Analog Devices, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -139.1 M | -146.1 M | |
| Operating Income | 3.4 B | 3.5 B | |
| Income Before Tax | 3.1 B | 3.3 B | |
| Total Other Income Expense Net | -198.3 M | -188.4 M | |
| Net Income | 2.6 B | 2.7 B | |
| Income Tax Expense | 511.5 M | 537.1 M | |
| Net Income Applicable To Common Shares | 3.8 B | 4 B | |
| Net Income From Continuing Ops | 2.6 B | 1.4 B | |
| Non Operating Income Net Other | 18.4 M | 19.3 M | |
| Interest Income | 121.1 M | 127.1 M | |
| Net Interest Income | -191.2 M | -200.8 M | |
| Change To Netincome | -166.1 M | -157.8 M | |
| Net Income Per Share | 3.31 | 3.48 | |
| Income Quality | 1.65 | 1.28 | |
| Net Income Per E B T | 0.93 | 0.66 |
Analog Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Analog Devices. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Analog Devices position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Analog Devices' important profitability drivers and their relationship over time.
Analog Devices Earnings per Share Projection vs Actual
Use Analog Devices in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Analog Devices position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Analog Devices will appreciate offsetting losses from the drop in the long position's value.Analog Devices Pair Trading
Analog Devices Pair Trading Analysis
The ability to find closely correlated positions to Analog Devices could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Analog Devices when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Analog Devices - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Analog Devices to buy it.
The correlation of Analog Devices is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Analog Devices moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Analog Devices moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Analog Devices can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Analog Devices position
In addition to having Analog Devices in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Trending Equities. For more detail on how to invest in Analog Stock please use our How to Invest in Analog Devices guide.You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
To fully project Analog Devices' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Analog Devices at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Analog Devices' income statement, its balance sheet, and the statement of cash flows.