$Analog Devices (ADI.US)$In the March 2022 analysis, it was ...

Launched in 1969, mainly engaged in integrated circuit business, global market, current price 193.15.

In the past 5 years, revenue shrank slightly in the first two years, and increased sharply in the past 3 years. The growth rate fell back to 2.4% in 2023, the operating profit growth rate fell back to 12.1% in 2023, and the net profit growth rate in 2023 was 20.6%. However, both revenue and profit contracted sharply in the Q4 quarter.

Goodwill and other intangible assets increased sharply from $15.929 billion to $42.186 billion in 2021, indicating significant acquisitions, which explains the rapid increase in revenue and profit over the past 3 years. Generally, acquisition-driven growth has a limited time, and there may be depreciation pressure in the future. Currently, revenue and operating profit have been shrinking for two consecutive quarters.

2024Q1 revenue continued to shrink by 22.8%, operating profit by 48%, and net profit per share by 51%.

Currently, the price-earnings ratio is 29.4, and the price-earnings ratio is TTM 34.3. Considering the continuous sharp contraction in revenue, the current valuation is not very attractive.