300.25 USD
-1.85 (-0.61%)
301.5 USD
+1.25 (+0.42%)
We assign a fundamental rating of 6 out of 10 to ADI. ADI was compared to 113 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 not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make ADI suitable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year ADI was profitable.
- ADI had a positive operating cash flow in the past year.
- Each year in the past 5 years ADI has been profitable.
- ADI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of ADI (4.72%) is better than 68.14% of its industry peers.
- Looking at the Return On Equity, with a value of 6.70%, ADI is in the better half of the industry, outperforming 62.83% of the companies in the same industry.
- ADI has a better Return On Invested Capital (6.01%) than 68.14% of its industry peers.
- ADI had an Average Return On Invested Capital over the past 3 years of 5.97%. This is below the industry average of 10.75%.
- The last Return On Invested Capital (6.01%) for ADI is above the 3 year average (5.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 6.7% | ||
| ROIC | 6.01% |
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
- ADI has a better Profit Margin (20.58%) than 81.42% of its industry peers.
- ADI's Profit Margin has been stable in the last couple of years.
- The Operating Margin of ADI (27.25%) is better than 85.84% of its industry peers.
- In the last couple of years the Operating Margin of ADI has remained more or less at the same level.
- ADI has a better Gross Margin (61.47%) than 85.84% 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 | 27.25% | ||
| PM (TTM) | 20.58% | ||
| GM | 61.47% |
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. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADI is destroying value.
- Compared to 1 year ago, ADI has less shares outstanding
- Compared to 5 years ago, ADI has more shares outstanding
- Compared to 1 year ago, ADI has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 7.10 indicates that ADI is not in any danger for bankruptcy at the moment.
- ADI has a better Altman-Z score (7.10) than 63.72% of its industry peers.
- The Debt to FCF ratio of ADI is 2.01, which is a good value as it means it would take ADI, 2.01 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.01, ADI is in the better half of the industry, outperforming 69.03% of the companies in the same industry.
- A Debt/Equity ratio of 0.25 indicates that ADI is not too dependend on debt financing.
- ADI's Debt to Equity ratio of 0.25 is in line compared to the rest of the industry. ADI outperforms 45.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 7.1 |
ROIC/WACC0.56
WACC10.74%
2.3 Liquidity
- A Current Ratio of 2.19 indicates that ADI has no problem at all paying its short term obligations.
- ADI has a Current ratio of 2.19. This is in the lower half of the industry: ADI underperforms 72.57% of its industry peers.
- ADI has a Quick Ratio of 1.68. 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 Quick ratio, with a value of 1.68, ADI is doing worse than 67.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 22.10% 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.
- ADI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.89%.
- Measured over the past years, ADI shows a quite strong growth in Revenue. The Revenue has been growing by 14.49% on average per year.
EPS 1Y (TTM)22.1%
EPS 3Y-6.69%
EPS 5Y9.67%
EPS Q2Q%35.33%
Revenue 1Y (TTM)16.89%
Revenue growth 3Y-2.84%
Revenue growth 5Y14.49%
Sales Q2Q%25.9%
3.2 Future
- Based on estimates for the next years, ADI will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.92% on average per year.
- ADI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.46% yearly.
EPS Next Y27.8%
EPS Next 2Y20.53%
EPS Next 3Y19.13%
EPS Next 5Y16.92%
Revenue Next Year18.97%
Revenue Next 2Y13.56%
Revenue Next 3Y12.69%
Revenue Next 5Y11.46%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 38.54, which means the current valuation is very expensive for ADI.
- ADI's Price/Earnings ratio is a bit cheaper when compared to the industry. ADI is cheaper than 73.45% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, ADI is valued a bit more expensive.
- Based on the Price/Forward Earnings ratio of 30.16, the valuation of ADI can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 69.91% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. ADI is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.54 | ||
| Fwd PE | 30.16 |
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 68.14% of the companies listed in the same industry.
- ADI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADI is cheaper than 81.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.36 | ||
| EV/EBITDA | 30.02 |
4.3 Compensation for Growth
- ADI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of ADI may justify a higher PE ratio.
- ADI's earnings are expected to grow with 19.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.39
PEG (5Y)3.99
EPS Next 2Y20.53%
EPS Next 3Y19.13%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.31%, ADI has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.51, ADI pays a better dividend. On top of this ADI pays more dividend than 84.96% of the companies listed in the same industry.
- ADI's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
- The dividend of ADI is nicely growing with an annual growth rate of 10.17%!
- ADI has been paying a dividend for at least 10 years, so it has a reliable track record.
- ADI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.17%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
- 84.88% of the earnings are spent on dividend by ADI. This is not a sustainable payout ratio.
- The dividend of ADI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP84.88%
EPS Next 2Y20.53%
EPS Next 3Y19.13%
300.25
-1.85 (-0.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)11-25 2025-11-25/bmo
Earnings (Next)02-17 2026-02-17/bmo
Inst Owners93.84%
Inst Owner Change-0.09%
Ins Owners0.05%
Ins Owner Change-8.91%
Market Cap147.02B
Revenue(TTM)11.02B
Net Income(TTM)2.27B
Analysts80.49
Price Target290.2 (-3.35%)
Short Float %2.25%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend3.9
Dividend Growth(5Y)10.17%
DP84.88%
Div Incr Years21
Div Non Decr Years21
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.33%
Min EPS beat(2)0.75%
Max EPS beat(2)3.92%
EPS beat(4)4
Avg EPS beat(4)4.24%
Min EPS beat(4)0.75%
Max EPS beat(4)7.67%
EPS beat(8)8
Avg EPS beat(8)3.99%
EPS beat(12)10
Avg EPS beat(12)2.98%
EPS beat(16)14
Avg EPS beat(16)4%
Revenue beat(2)2
Avg Revenue beat(2)2.08%
Min Revenue beat(2)1.29%
Max Revenue beat(2)2.87%
Revenue beat(4)4
Avg Revenue beat(4)2.51%
Min Revenue beat(4)1.29%
Max Revenue beat(4)4.23%
Revenue beat(8)7
Avg Revenue beat(8)1.52%
Revenue beat(12)9
Avg Revenue beat(12)1.08%
Revenue beat(16)13
Avg Revenue beat(16)1.33%
PT rev (1m)1.73%
PT rev (3m)5.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.81%
EPS NY rev (1m)0.88%
EPS NY rev (3m)5.01%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)4.77%
Revenue NY rev (1m)1.26%
Revenue NY rev (3m)5.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.54 | ||
| Fwd PE | 30.16 | ||
| P/S | 13.34 | ||
| P/FCF | 34.36 | ||
| P/OCF | 30.55 | ||
| P/B | 4.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.02 |
EPS(TTM)7.79
EY2.59%
EPS(NY)9.96
Fwd EY3.32%
FCF(TTM)8.74
FCFY2.91%
OCF(TTM)9.83
OCFY3.27%
SpS22.51
BVpS69.06
TBVpS-2.33
PEG (NY)1.39
PEG (5Y)3.99
Graham Number110.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 6.7% | ||
| ROCE | 6.71% | ||
| ROIC | 6.01% | ||
| ROICexc | 6.54% | ||
| ROICexgc | 41.26% | ||
| OM | 27.25% | ||
| PM (TTM) | 20.58% | ||
| GM | 61.47% | ||
| FCFM | 38.83% |
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-Score8
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.01 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 26.69% | ||
| Cap/Sales | 4.84% | ||
| Interest Coverage | 11.75 | ||
| Cash Conversion | 96.22% | ||
| Profit Quality | 188.71% | ||
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 7.1 |
F-Score8
WACC10.74%
ROIC/WACC0.56
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)22.1%
EPS 3Y-6.69%
EPS 5Y9.67%
EPS Q2Q%35.33%
EPS Next Y27.8%
EPS Next 2Y20.53%
EPS Next 3Y19.13%
EPS Next 5Y16.92%
Revenue 1Y (TTM)16.89%
Revenue growth 3Y-2.84%
Revenue growth 5Y14.49%
Sales Q2Q%25.9%
Revenue Next Year18.97%
Revenue Next 2Y13.56%
Revenue Next 3Y12.69%
Revenue Next 5Y11.46%
EBIT growth 1Y45.04%
EBIT growth 3Y-6.89%
EBIT growth 5Y13.85%
EBIT Next Year57.13%
EBIT Next 3Y23.65%
EBIT Next 5Y20.25%
FCF growth 1Y37.05%
FCF growth 3Y4.25%
FCF growth 5Y18.35%
OCF growth 1Y24.91%
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 84.88%.