Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In today's rapidly evolving and fiercely competitive business landscape, it is crucial for investors and industry analysts to conduct comprehensive company evaluations. In this article, we will undertake an in-depth industry comparison, assessing Analog Devices (NASDAQ:ADI) alongside its primary competitors in the Semiconductors & Semiconductor Equipment industry. By meticulously examining crucial financial indicators, market positioning, and growth potential, we aim to provide valuable insights to investors and shed light on company's performance within the industry.
Analog Devices Background Analog Devices is a leading analog, mixed signal, and digital signal processing chipmaker. The firm has a significant market share lead in converter chips, which are used to translate analog signals to digital and vice versa. The company serves tens of thousands of customers, and more than half of its chip sales are made to industrial and automotive end markets. Analog Devices' chips are also incorporated into wireless infrastructure equipment.
Analog Devices Inc | 23.94 | 2.44 | 6.99 | 2.44% | $1.53 | $1.96 | -1.07% |
NVIDIA Corp | 110.62 | 41.13 | 34.92 | 23.79% | $7.41 | $9.46 | 101.48% |
Taiwan Semiconductor Manufacturing Co Ltd | 16.04 | 4.74 | 6.78 | 5.8% | $341.62 | $260.2 | -9.98% |
Broadcom Inc | 26.42 | 16.05 | 10.12 | 14.98% | $4.91 | $6.16 | 4.87% |
Texas Instruments Inc | 18.93 | 8.98 | 7.69 | 10.99% | $2.39 | $2.91 | -13.07% |
Qualcomm Inc | 14.70 | 6.06 | 3.28 | 8.93% | $2.41 | $4.66 | -22.72% |
ARM Holdings PLC | 141.49 | 13.54 | 21.47 | 2.54% | $0.15 | $0.64 | -2.46% |
Microchip Technology Inc | 18.66 | 6.44 | 5.11 | 9.99% | $1.12 | $1.56 | 16.55% |
STMicroelectronics NV | 9.67 | 2.81 | 2.45 | 7.07% | $1.57 | $2.12 | 12.74% |
ON Semiconductor Corp | 21.35 | 5.77 | 5.01 | 8.59% | $0.85 | $0.99 | 0.45% |
GLOBALFOUNDRIES Inc | 21.49 | 3.05 | 4.10 | 2.31% | $0.63 | $0.53 | -7.43% |
United Microelectronics Corp | 7.18 | 1.77 | 2.27 | 4.59% | $28.73 | $20.25 | -21.87% |
ASE Technology Holding Co Ltd | 12.01 | 1.92 | 0.85 | 2.82% | $25.7 | $21.74 | -15.06% |
First Solar Inc | 103.81 | 2.68 | 5.41 | 2.86% | $0.26 | $0.31 | 30.55% |
Skyworks Solutions Inc | 15.15 | 2.67 | 3.18 | 3.37% | $0.39 | $0.46 | -13.09% |
Lattice Semiconductor Corp | 56.23 | 19.69 | 15.94 | 9.29% | $0.06 | $0.13 | 17.79% |
Universal Display Corp | 37.03 | 5.70 | 12.62 | 3.75% | $0.07 | $0.11 | 7.33% |
Rambus Inc | 35.79 | 7.02 | 14.31 | 19.78% | $0.03 | $0.1 | -1.07% |
Allegro Microsystems Inc | 25.28 | 5.82 | 5.84 | 6.11% | $0.08 | $0.16 | 27.8% |
MACOM Technology Solutions Holdings Inc | 19.23 | 6.42 | 8.73 | 1.31% | $0.03 | $0.09 | -13.78% |
Average | 37.43 | 8.54 | 8.95 | 7.84% | $22.02 | $17.5 | 5.21% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } When analyzing Analog Devices, the following trends become evident:
- A Price to Earnings ratio of 23.94 significantly below the industry average by 0.64x suggests undervaluation. This can make the stock appealing for those seeking growth.
- The current Price to Book ratio of 2.44, which is 0.29x the industry average, is substantially lower than the industry average, indicating potential undervaluation.
- The Price to Sales ratio is 6.99, which is 0.78x the industry average. This suggests a possible undervaluation based on sales performance.
- The company has a lower Return on Equity (ROE) of 2.44%, which is 5.4% below the industry average. This indicates potential inefficiency in utilizing equity to generate profits, which could be attributed to various factors.
- The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $1.53 Billion is 0.07x below the industry average, suggesting potential lower profitability or financial challenges.
- With lower gross profit of $1.96 Billion, which indicates 0.11x below the industry average, the company may experience lower revenue after accounting for production costs.
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The company is witnessing a substantial decline in revenue growth, with a rate of -1.07% compared to the industry average of 5.21%, which indicates a challenging sales environment.
The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage of a company.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
By considering the Debt-to-Equity ratio, Analog Devices can be compared to its top 4 peers, leading to the following observations:
- Analog Devices demonstrates a stronger financial position compared to its top 4 peers in the sector.
- With a lower debt-to-equity ratio of 0.19, the company relies less on debt financing and maintains a healthier balance between debt and equity, which can be viewed positively by investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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