September 21, 2023
Top 10 Stock Analog Devices Hold Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Analog Devices Hold

360 METRICS	September 21, 2023
VALUE
VALUE	79
GROWTH
GROWTH	19
SAFETY
SAFETY	47
SENTIMENT
SENTIMENT	33
360° VIEW
360° VIEW	40

ANALYSIS: With an Obermatt 360° View of 40 (better than 40% compared with alternatives), overall professional sentiment and financial characteristics for the stock Analog Devices are below the industry average. The 360° View is based on consolidating four consolidated indicators, with three out of four indicators below average for Analog Devices. Only the consolidated Value Rank has an attractive rank of 79, which means that the share price of Analog Devices is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means that the stock price is lower than for 79% of alternative stocks in the same industry. All other consolidated ranks are below average. The consolidated Growth Rank has a low rank of 19, which means that the company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. The consolidated Safety Rank has a riskier rank of 47, meaning the company has a riskier financing structure than 53% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. Finally, professionals are more pessimistic about the stock than for 67% of alternative investment opportunities, reflected in the consolidated Sentiment Rank of 33. ...read more

RECOMMENDATION: With a consolidated 360° View of 40, Analog Devices is worse than 60% of all alternative stock investment opportunities based on the Obermatt Method. Only one of the consolidated Obermatt Ranks exhibits above-average performance, namely the Value Rank at a level of 79. All other ranks are below average, so proceed with caution. The company has below-average growth expectations (Growth Rank of 19), a riskier financing structure than the competition (Safety Rank of 47), and the market sentiment in the professional investor community ranking at (Sentiment Rank of 33) is negative. This combination is sensitive to a crisis, because high debt levels (low safety) require growth to finance the debt burden. It’s no wonder that the investor community indicators are skeptical (low sentiment). Good value is sometimes an indication that the company's future is challenging. The below-par growth performance may be the reason for this assessment. We recommend evaluating whether the future of Analog Devices is as challenging as the low price of the stock suggests. Since the professional community is pessimistic, you might need to worry about the future of Analog Devices. Only invest if you have solid reasons to believe that the low growth is temporary and the current market sentiment is an overreaction, possibly due to reputational issues in the past. ...read more

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Sentiment Strategy: Professional Market Sentiment for Analog Devices only reserved

SENTIMENT METRICS	September 21, 2023
ANALYST OPINION
ANALYST OPINION	68
OPINIONS CHANGE
OPINIONS CHANGE	7
PRO HOLDINGS
PRO HOLDINGS	65
MARKET PULSE
MARKET PULSE	22
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	33

ANALYSIS: With an Obermatt Sentiment Rank of 33 (better than 33% compared with alternatives), overall professional sentiment and engagement for the stock Analog Devices is below industry average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the indicators below and the other half above average for Analog Devices. Analyst Opinions are at a rank of 68 (better than 68% of alternative investments). Currently, stock research analysts tend to recommend a stock investment in the company. There are also many institutional investors invested in the stock, represented by a Professional Investors rank of 65 which means that currently, professional investors hold more stock in this company than in 65% of alternative investment opportunities. But Analyst Opinions Change has a rank of 7, which means that stock research experts are changing their opinions for the worse in recommending investing in the company. In other words, they are getting more critical of investments in Analog Devices. Furthermore, Market Pulse has a rank of 22, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 78% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 33 (less encouraging than 67% compared with investment alternatives), Analog Devices has a reputation among professional investors that is below that of its competitors. Three below-market sentiment indicators are a sign of caution, even if the stock has significantly appreciated. If analysts change their opinions, the stock may become too expensive. If the price is on the way down, the trend may continue. This may be a stock with a good reputation and history, but it may have reached its breaking point by now. Investors should look at the Value Ranks as well. If they indicate trouble, it may be around the corner. ...read more

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Value Strategy: Analog Devices Stock Price Value at the top

VALUE METRICS	September 21, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	19
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	56
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	64
DIVIDEND YIELD
DIVIDEND YIELD	91
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	79

ANALYSIS: With an Obermatt Value Rank of 79 (better than 79% compared with alternatives) for 2023, Analog Devices shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Analog Devices. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 56 which means that the stock price compared with what market professionals expect for future profits is lower than for 56% of comparable companies, indicating a good value concerning Analog Devices's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 64, and for Dividend Yield with a Dividend Yield Rank of 91. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 81% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 19). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 79, is a buy recommendation based on Analog Devices's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Analog Devices has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Analog Devices shares. ...read more

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Growth Strategy: Analog Devices Growth Momentum negative

GROWTH METRICS	September 21, 2023
REVENUE GROWTH
REVENUE GROWTH	1
PROFIT GROWTH
PROFIT GROWTH	70
CAPITAL GROWTH
CAPITAL GROWTH	13
STOCK RETURNS
STOCK RETURNS	61
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	19

ANALYSIS: With an Obermatt Growth Rank of 19 (better than 19% compared with alternatives), Analog Devices shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Analog Devices. Profit Growth has a rank of 70, which means that currently professionals expect the company to grow its profits more than 70% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 61 (above 61% of alternative investments). But Sales Growth has a below the median rank of 1, which means that, currently, professionals expect the company to grow less than 99% of its competitors, and Capital Growth also has a lower rank of 13. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 19, is a sell recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Analog Devices. ...read more

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Safety Strategy: Analog Devices Debt Financing Safety below-average

SAFETY METRICS	September 21, 2023
LEVERAGE
LEVERAGE	60
REFINANCING
REFINANCING	11
LIQUIDITY
LIQUIDITY	67
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	47

ANALYSIS: With an Obermatt Safety Rank of 47 (better than 47% compared with alternatives), the company Analog Devices has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Analog Devices is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Analog Devices. Leverage is at a rank of 60, meaning the company has a below-average debt-to-equity ratio. It has less debt than 60% of its competitors. Liquidity is also good at a rank of 67, meaning the company generates more profit to service its debt than 67% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 11, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 89% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 47 (worse than 53% compared with alternatives), Analog Devices has a financing structure that is riskier than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Analog Devices. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. ...read more

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Combined financial peformance: Analog Devices Above-Average Financial Performance

COMBINED PERFORMANCE	September 21, 2023
VALUE
VALUE	79
GROWTH
GROWTH	19
SAFETY
SAFETY	67
COMBINED
COMBINED	55

ANALYSIS: With an Obermatt Combined Rank of 55 (better than 55% compared with investment alternatives), Analog Devices (Semiconductors, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Analog Devices are a good value (attractively priced) with a consolidated Value Rank of 79 (better than 79% of alternatives) but show below-average growth (Growth Rank of 19), and are riskily financed (Safety Rank of 47), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 55, is a buy recommendation based on Analog Devices's financial characteristics. As the company Analog Devices's key financial metrics exhibit good value (Obermatt Value Rank of 79) but low growth (Obermatt Growth Rank of 19) and risky financing practices (Obermatt Safety Rank of 47), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 79% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. ...read more

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