ADI - Embedded Expectations Analysis - 2021 04 05
Analog Devices, Inc. (ADI:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings with a 23.1x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about their 5G solutions, automation spending, and revenue growthSpecifically, management may be concerned about supply constrains in the global semiconductor market, and they may be exaggerating the capabilities of their 5G solutions. Moreover, they may lack confidence in their ability to sustain strong revenue growth across wireless, wireline, and wearables end markets, manage payroll expenses, and keep capex spending near their targeted range. Management may also lack confidence in their ability to capitalize on new pipeline opportunities for automation related functions, and they be concerned about the sustainability of automation-driven spending growth. Finally, they may lack confidence in their ability to sustain their capital deployment investments, maintain their adjusted EPS, and execute their “Engineering Good” mission across different sectors
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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