ADI - Embedded Expectations Analysis - 2021 06 18
Analog Devices, Inc. (ADI:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings with a 23.9x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about their BMS chips, supply chain constraints, and the sustainability of product demandSpecifically, management may lack confidence in their ability to generate value through innovation, maintain their strong design momentum across their diversified industrial markets, and deliver solutions with more advanced technology capabilities. Also, they may have concerns about supply chain constraints, back-end operational issues, and the sustainability of demand for silicon products and C-band auction orders. In addition, they may also be exaggerating the precision and efficiency of their factory automation solutions, the potential of their BMS chips to gain market share in the EV space, and their ability to provide the most miles per charge. Moreover, management may be overstating the sustainability of new auto manufacturer wins. Finally, they may lack confidence in their ability to rebuild inventory levels and sustain growth across individual sectors, particularly in the automation and energy 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.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.