ANALOG DEVICES INC (ADI) Fundamental Analysis & Valuation
NASDAQ:ADI • US0326541051
307.27 USD
-11.95 (-3.74%)
At close: Mar 12, 2026
307 USD
-0.27 (-0.09%)
Pre-Market: 3/13/2026, 5:44:49 AM
This ADI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, ADI scores 6 out of 10 in our fundamental rating. ADI was compared to 115 industry peers in the Semiconductors & Semiconductor Equipment industry. ADI scores excellent on profitability, but there are some minor concerns on its financial health. ADI is growing strongly while it is still valued neutral. This is a good combination! With these ratings, ADI could be worth investigating further for growth investing!.
1. ADI Profitability Analysis
1.1 Basic Checks
- ADI had positive earnings in the past year.
- In the past year ADI had a positive cash flow from operations.
- ADI had positive earnings in each of the past 5 years.
- In the past 5 years ADI always reported a positive cash flow from operatings.
1.2 Ratios
- ADI has a Return On Assets of 5.64%. This is in the better half of the industry: ADI outperforms 71.30% of its industry peers.
- With a decent Return On Equity value of 8.01%, ADI is doing good in the industry, outperforming 66.96% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 7.15%, ADI is in the better half of the industry, outperforming 73.04% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ADI is below the industry average of 10.52%.
- The 3 year average ROIC (5.97%) for ADI is below the current ROIC(7.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 8.01% | ||
| ROIC | 7.15% |
ROA(3y)4.97%
ROA(5y)4.61%
ROE(3y)6.89%
ROE(5y)6.37%
ROIC(3y)5.97%
ROIC(5y)5.69%
1.3 Margins
- With an excellent Profit Margin value of 23.02%, ADI belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
- In the last couple of years the Profit Margin of ADI has remained more or less at the same level.
- The Operating Margin of ADI (29.70%) is better than 87.83% of its industry peers.
- ADI's Operating Margin has been stable in the last couple of years.
- ADI has a Gross Margin of 62.84%. This is amongst the best in the industry. ADI outperforms 88.70% of its industry peers.
- In the last couple of years the Gross Margin of ADI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.7% | ||
| PM (TTM) | 23.02% | ||
| GM | 62.84% |
OM growth 3Y-4.17%
OM growth 5Y-0.56%
PM growth 3Y-3.48%
PM growth 5Y-1.14%
GM growth 3Y-0.66%
GM growth 5Y-1.37%
2. ADI Health Analysis
2.1 Basic Checks
- ADI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for ADI has been reduced compared to 1 year ago.
- The number of shares outstanding for ADI has been increased compared to 5 years ago.
- The debt/assets ratio for ADI is higher compared to a year ago.
2.2 Solvency
- ADI has an Altman-Z score of 7.22. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
- ADI's Altman-Z score of 7.22 is fine compared to the rest of the industry. ADI outperforms 64.35% of its industry peers.
- ADI has a debt to FCF ratio of 1.90. This is a very positive value and a sign of high solvency as it would only need 1.90 years to pay back of all of its debts.
- ADI has a better Debt to FCF ratio (1.90) than 67.83% of its industry peers.
- A Debt/Equity ratio of 0.23 indicates that ADI is not too dependend on debt financing.
- ADI has a Debt to Equity ratio (0.23) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | 7.22 |
ROIC/WACC0.63
WACC11.33%
2.3 Liquidity
- ADI has a Current Ratio of 1.76. This is a normal value and indicates that ADI is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.76, ADI is doing worse than 80.87% of the companies in the same industry.
- A Quick Ratio of 1.35 indicates that ADI should not have too much problems paying its short term obligations.
- ADI has a Quick ratio of 1.35. This is in the lower half of the industry: ADI underperforms 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.35 |
3. ADI Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 37.26% over the past year.
- Measured over the past years, ADI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.67% on average per year.
- The Revenue has grown by 25.91% in the past year. This is a very strong growth!
- The Revenue has been growing by 14.49% on average over the past years. This is quite good.
EPS 1Y (TTM)37.26%
EPS 3Y-6.69%
EPS 5Y9.67%
EPS Q2Q%50.92%
Revenue 1Y (TTM)25.91%
Revenue growth 3Y-2.84%
Revenue growth 5Y14.49%
Sales Q2Q%30.42%
3.2 Future
- Based on estimates for the next years, ADI will show a very strong growth in Earnings Per Share. The EPS will grow by 22.39% on average per year.
- ADI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.40% yearly.
EPS Next Y46.68%
EPS Next 2Y29.29%
EPS Next 3Y23.98%
EPS Next 5Y22.39%
Revenue Next Year27.45%
Revenue Next 2Y18.33%
Revenue Next 3Y15.54%
Revenue Next 5Y13.4%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. ADI Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 35.65 indicates a quite expensive valuation of ADI.
- 78.26% of the companies in the same industry are more expensive than ADI, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 25.71. ADI is valued slightly more expensive when compared to this.
- Based on the Price/Forward Earnings ratio of 23.60, the valuation of ADI can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, ADI is valued a bit cheaper than 73.91% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ADI to the average of the S&P500 Index (23.82), we can say ADI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.65 | ||
| Fwd PE | 23.6 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 70.43% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.9 | ||
| EV/EBITDA | 27.98 |
4.3 Compensation for Growth
- ADI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- ADI has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as ADI's earnings are expected to grow with 23.98% in the coming years.
PEG (NY)0.76
PEG (5Y)3.69
EPS Next 2Y29.29%
EPS Next 3Y23.98%
5. ADI Dividend Analysis
5.1 Amount
- ADI has a Yearly Dividend Yield of 1.33%. Purely for dividend investing, there may be better candidates out there.
- ADI's Dividend Yield is rather good when compared to the industry average which is at 0.49. ADI pays more dividend than 87.83% of the companies in the same industry.
- ADI's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
- On average, the dividend of ADI grows each year by 10.17%, which is quite nice.
- ADI has been paying a dividend for at least 10 years, so it has a reliable track record.
- ADI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.17%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
- ADI pays out 72.13% of its income as dividend. This is not a sustainable payout ratio.
- ADI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP72.13%
EPS Next 2Y29.29%
EPS Next 3Y23.98%
ADI Fundamentals: All Metrics, Ratios and Statistics
307.27
-11.95 (-3.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-18 2026-02-18/bmo
Earnings (Next)05-20 2026-05-20/bmo
Inst Owners93.41%
Inst Owner Change-1.27%
Ins Owners0.04%
Ins Owner Change-7.01%
Market Cap150.01B
Revenue(TTM)11.76B
Net Income(TTM)2.71B
Analysts80.47
Price Target379.39 (23.47%)
Short Float %1.68%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend3.9
Dividend Growth(5Y)10.17%
DP72.13%
Div Incr Years21
Div Non Decr Years21
Ex-Date03-03 2026-03-03 (1.1)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.07%
Min EPS beat(2)0.75%
Max EPS beat(2)5.38%
EPS beat(4)4
Avg EPS beat(4)4.43%
Min EPS beat(4)0.75%
Max EPS beat(4)7.67%
EPS beat(8)8
Avg EPS beat(8)4.61%
EPS beat(12)10
Avg EPS beat(12)3.04%
EPS beat(16)14
Avg EPS beat(16)3.83%
Revenue beat(2)2
Avg Revenue beat(2)0.84%
Min Revenue beat(2)0.39%
Max Revenue beat(2)1.29%
Revenue beat(4)4
Avg Revenue beat(4)2.19%
Min Revenue beat(4)0.39%
Max Revenue beat(4)4.23%
Revenue beat(8)8
Avg Revenue beat(8)1.63%
Revenue beat(12)9
Avg Revenue beat(12)0.94%
Revenue beat(16)13
Avg Revenue beat(16)1.23%
PT rev (1m)20.55%
PT rev (3m)34.39%
EPS NQ rev (1m)17.35%
EPS NQ rev (3m)18.17%
EPS NY rev (1m)13.72%
EPS NY rev (3m)15.78%
Revenue NQ rev (1m)8.64%
Revenue NQ rev (3m)9.08%
Revenue NY rev (1m)6.51%
Revenue NY rev (3m)8.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.65 | ||
| Fwd PE | 23.6 | ||
| P/S | 12.76 | ||
| P/FCF | 32.9 | ||
| P/OCF | 29.68 | ||
| P/B | 4.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.98 |
EPS(TTM)8.62
EY2.81%
EPS(NY)13.02
Fwd EY4.24%
FCF(TTM)9.34
FCFY3.04%
OCF(TTM)10.35
OCFY3.37%
SpS24.08
BVpS69.21
TBVpS-1.61
PEG (NY)0.76
PEG (5Y)3.69
Graham Number115.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 8.01% | ||
| ROCE | 8% | ||
| ROIC | 7.15% | ||
| ROICexc | 7.87% | ||
| ROICexgc | 56.61% | ||
| OM | 29.7% | ||
| PM (TTM) | 23.02% | ||
| GM | 62.84% | ||
| FCFM | 38.79% |
ROA(3y)4.97%
ROA(5y)4.61%
ROE(3y)6.89%
ROE(5y)6.37%
ROIC(3y)5.97%
ROIC(5y)5.69%
ROICexc(3y)6.28%
ROICexc(5y)5.97%
ROICexgc(3y)40.03%
ROICexgc(5y)44.98%
ROCE(3y)6.67%
ROCE(5y)6.33%
ROICexgc growth 3Y-8.68%
ROICexgc growth 5Y-1.94%
ROICexc growth 3Y-3.41%
ROICexc growth 5Y-2.59%
OM growth 3Y-4.17%
OM growth 5Y-0.56%
PM growth 3Y-3.48%
PM growth 5Y-1.14%
GM growth 3Y-0.66%
GM growth 5Y-1.37%
F-Score7
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.9 | ||
| Debt/EBITDA | 1.42 | ||
| Cap/Depr | 25.02% | ||
| Cap/Sales | 4.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.46% | ||
| Profit Quality | 168.46% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 7.22 |
F-Score7
WACC11.33%
ROIC/WACC0.63
Cap/Depr(3y)38.81%
Cap/Depr(5y)35.77%
Cap/Sales(3y)7.61%
Cap/Sales(5y)6.67%
Profit Quality(3y)162.3%
Profit Quality(5y)159.26%
High Growth Momentum
Growth
EPS 1Y (TTM)37.26%
EPS 3Y-6.69%
EPS 5Y9.67%
EPS Q2Q%50.92%
EPS Next Y46.68%
EPS Next 2Y29.29%
EPS Next 3Y23.98%
EPS Next 5Y22.39%
Revenue 1Y (TTM)25.91%
Revenue growth 3Y-2.84%
Revenue growth 5Y14.49%
Sales Q2Q%30.42%
Revenue Next Year27.45%
Revenue Next 2Y18.33%
Revenue Next 3Y15.54%
Revenue Next 5Y13.4%
EBIT growth 1Y72.62%
EBIT growth 3Y-6.89%
EBIT growth 5Y13.85%
EBIT Next Year69.1%
EBIT Next 3Y26.27%
EBIT Next 5Y20.25%
FCF growth 1Y40.66%
FCF growth 3Y4.25%
FCF growth 5Y18.35%
OCF growth 1Y11.07%
OCF growth 3Y2.45%
OCF growth 5Y19.1%
ANALOG DEVICES INC / ADI FAQ
What is the fundamental rating for ADI stock?
ChartMill assigns a fundamental rating of 6 / 10 to ADI.
What is the valuation status for ADI stock?
ChartMill assigns a valuation rating of 5 / 10 to ANALOG DEVICES INC (ADI). This can be considered as Fairly Valued.
How profitable is ANALOG DEVICES INC (ADI) stock?
ANALOG DEVICES INC (ADI) has a profitability rating of 7 / 10.
Can you provide the financial health for ADI stock?
The financial health rating of ANALOG DEVICES INC (ADI) is 5 / 10.
Is the dividend of ANALOG DEVICES INC sustainable?
The dividend rating of ANALOG DEVICES INC (ADI) is 6 / 10 and the dividend payout ratio is 72.13%.