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I am currently going through my Watch List to ensure that each company still deserves to be on the list. Because of the number of companies on my list, I am going to try to knock out 2 per weekday.

Company name Analog Devices, Inc.
Stock ticker ADI
Live stock price [stckqut]ADI[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Fair
P/E growth Good
EBIT growth Fair

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $51.77
Target stock price (averages with growth) $63.48
Target stock price (averages with no growth) $53.75
Target stock price (manual assumptions) $52.8

The following company description is from Google Finance: http://www.google.com/finance?q=adi

Analog Devices, Inc. (Analog Devices) is engaged in the design, manufacture and marketing of a range of analog, mixed-signal and digital signal processing integrated circuits (ICs). The Company has focused on solving the engineering challenges associated with signal processing in electronic equipment. The Company’s signal processing products play a fundamental role in converting, conditioning, and processing real-world phenomena, such as temperature, pressure, sound, light, speed and motion into electrical signals to be used in a wide array of electronic devices. As new generations of digital applications evolve, new needs for highanalog signal processing and digital signal processing (DSP) technology are generated. In November 2013, Analog Devices, Inc completed the sale of the assets of its microphone product line to InvenSense, Inc.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Analog Devices, Inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. I just recently added Analog Devices, Inc. to my Watch List and based on their latest financial reports and this analysis, I am going to remove the company. There are simply better companies to invest in at this time.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $52.84

Growth: 0.1

Current EPS (TTM): $2.2

P/E: 24

Future EPS Calc: $3.54

Future Stock Price Calc: $85.03

Target stock price: $52.8

I hope that this makes you a better investor. [/s2If]

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Company name Analog Devices, Inc.
Stock ticker ADI
Live stock price [stckqut]ADI[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $50
Target stock price (averages with growth) $67.26
Target stock price (averages with no growth) $61.09
Target stock price (manual assumptions) $50.3

The following company description is from Google Finance: http://www.google.com/finance?q=adi

Analog Devices, Inc. (Analog Devices) is engaged in the design, manufacture and marketing of a range of analog, mixed-signal and digital signal processing integrated circuits (ICs). The Company produces a range of products, including data converters, amplifiers and linear products, radio frequency (RF) ICs, power management products, sensors based on micro-electro mechanical systems (MEMS) technology and other sensors, and processing products, including DSP and other processors, which are designed to meet the needs of a base of customers. The Company’s products are embedded inside many different types of electronic equipment, including industrial process control systems; instrumentation and measurement systems; wireless infrastructure equipment, and aerospace and defense electronics. The Company designs , manufactures and markets a range of ICs, which incorporate analog, mixed-signal and digital signal processing technologies. On March 30, 2012, the Company acquired Multigig, Inc.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $46.75

Growth: 0.11

Current EPS (TTM): $2.09

P/E: 23

Future EPS Calc: $3.52

Future Stock Price Calc: $81

Target stock price: $50.29

I hope that this makes you a better investor. [/s2If]