ADI - Embedded Expectations Analysis - 2020 07 17
Analog Devices, Inc. (ADI:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings with a 25.9x Uniform P/E. Even at these levels, the market is pricing in bearish expectations for the firm, and management may be concerned about their B2B revenue, capex in H2 2020, and product demandSpecifically, management is also confident their operating margin is down year-over-year. Furthermore, they may lack confidence in their ability to increase shareholder return either through dividends or share repurchases and effectively implement safety protocols for their employees. Also, they may be concerned about their ability to grow their B2B revenue in line with expectations, and may have concerns about the expected decline in capex in H2 2020. Moreover, they may have concerns about their liquidity position, and might lack confidence in the potential of their solutions that combine their analog-mixed-signal and power micro module portfolios. Finally, they may be concerned about the sustainability of demand for their precision signal chain of power franchises, electric vehicles, and communications products
Analog Devices is an analog technology company. The company designs, manufactures, and markets a portfolio of solutions, including integrated circuits, algorithms, software, and subsystems. The company's analog products include data converter that translate real-world analog signals into digital data and also translate digital data into analog signals, amplifiers that condition analog signals, and power management and reference products that include functions such as power conversion, driver monitoring, sequencing and energy management. The company's digital signal processing products are designed to execute software programs, or algorithms, associated with processing digitized real-time, real-world data.
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