On Nov. 27, chip designer Analog Devices
- The margin misery continues, as every conceivable profit proportion slides southward yet again. Growing cash flows make up for some of the damage, though.
- The company continues to use cash for share buybacks. The three-year-old repurchase plan has $665 million of authorized buybacks remaining, out of the original $3.3 billion authorization.
- The report is full of unusual metrics that help investors examine the results from different angles. Curiously enough, some bog-standard figures are missing, including accounts payable and short-term debt.
(Figures in millions, except per-share data)
Income Statement Highlights
Q4 2007 |
Q4 2006 |
Change |
|
---|---|---|---|
Sales |
$648 |
$610 |
6.4% |
Net Profit |
$97.9 |
$138 |
(29.3%) |
EPS |
$0.31 |
$0.39 |
(20.5%) |
Diluted Shares |
313.8 |
357.2 |
(12.1%) |
Get back to basics with the income statement.
Margin Checkup
Q4 2007 |
Q4 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
58.4% |
59.6% |
(1.2) |
Operating Margin |
18.7% |
20.2% |
(1.5) |
Net Margin |
15.1% |
22.7% |
(7.6) |
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q4 2007 |
Q4 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$1,081 |
$2,128 |
(49.2%) |
Accounts Rec. |
$336 |
$306 |
10.0% |
Inventory |
$348 |
$363 |
(4.3%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
Q4 2007 |
Q4 2006 |
Change |
|
---|---|---|---|
Cash From Ops. |
$183 |
$167 |
9.7% |
Capital Expenditures |
$33.2 |
$41.8 |
(20.5%) |
Free Cash Flow |
$150 |
$125 |
19.8% |
$102 |
$139 |
(26.3%) |
Free cash flow is a Fool's best friend.
Competitive Context
Market Cap |
Trailing P/E Ratio |
CAPS Rating |
|
---|---|---|---|
Texas
Instruments |
$44,350 |
18.2 |
|
Broadcom |
$15,070 |
96.5 |
|
Analog Devices |
$10,340 |
21.2 |
|
Linear Technology |
$6,820 |
21.6 |
|
National Semiconductor |
$6,070 |
21.5 |
Keep your partners close and the competition in your vest pocket.
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