281.795 USD
+4.54 (+1.64%)
Overall ADI gets a fundamental rating of 6 out of 10. We evaluated ADI against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. While ADI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ADI is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, ADI could be worth investigating further 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.
ADI had positive earnings in each of the past 5 years.
Each year in the past 5 years ADI had a positive operating cash flow.
1.2 Ratios
ADI has a better Return On Assets (4.72%) than 71.43% of its industry peers.
The Return On Equity of ADI (6.70%) is better than 66.07% of its industry peers.
ADI's Return On Invested Capital of 5.82% is fine compared to the rest of the industry. ADI outperforms 68.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADI is significantly below the industry average of 10.79%.
The 3 year average ROIC (5.78%) for ADI is below the current ROIC(5.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 6.7% | ||
| ROIC | 5.82% |
ROA(3y)4.97%
ROA(5y)4.61%
ROE(3y)6.89%
ROE(5y)6.37%
ROIC(3y)5.78%
ROIC(5y)5.51%
1.3 Margins
ADI has a Profit Margin of 20.58%. This is amongst the best in the industry. ADI outperforms 83.93% of its industry peers.
In the last couple of years the Profit Margin of ADI has remained more or less at the same level.
Looking at the Operating Margin, with a value of 27.25%, ADI belongs to the top of the industry, outperforming 86.61% of the companies in the same industry.
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 85.71% of its industry peers.
ADI's Gross Margin has been stable in the last couple of years.
| 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
ADI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ADI has less shares outstanding
The number of shares outstanding for ADI has been increased compared to 5 years ago.
Compared to 1 year ago, ADI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.61 indicates that ADI is not in any danger for bankruptcy at the moment.
The Altman-Z score of ADI (6.61) is better than 63.39% 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 67.86% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that ADI is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.25, ADI perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 6.61 |
ROIC/WACC0.57
WACC10.27%
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 worse Current ratio (2.19) than 71.43% 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.
ADI has a worse Quick ratio (1.68) than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
ADI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.10%, which is quite impressive.
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.
Looking at the last year, ADI shows a quite strong growth in Revenue. The Revenue has grown by 16.89% in the last year.
ADI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.49% yearly.
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%25.91%
3.2 Future
The Earnings Per Share is expected to grow by 20.64% on average over the next years. This is a very strong growth
Based on estimates for the next years, ADI will show a quite strong growth in Revenue. The Revenue will grow by 11.20% on average per year.
EPS Next Y26.69%
EPS Next 2Y20.17%
EPS Next 3Y18.89%
EPS Next 5Y20.64%
Revenue Next Year17.49%
Revenue Next 2Y13.1%
Revenue Next 3Y12.32%
Revenue Next 5Y11.2%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
ADI is valuated quite expensively with a Price/Earnings ratio of 36.22.
Based on the Price/Earnings ratio, ADI is valued a bit cheaper than 70.54% of the companies in the same industry.
When comparing the Price/Earnings ratio of ADI to the average of the S&P500 Index (26.41), we can say ADI is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 28.59, the valuation of ADI can be described as expensive.
Based on the Price/Forward Earnings ratio, ADI is valued a bit cheaper than 66.07% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.40, ADI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.17 | ||
| Fwd PE | 28.55 |
4.2 Price Multiples
ADI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADI is cheaper than 66.07% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ADI is valued cheaper than 80.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.4 | ||
| EV/EBITDA | 27.71 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ADI has a very decent profitability rating, which may justify a higher PE ratio.
ADI's earnings are expected to grow with 18.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.36
PEG (5Y)3.74
EPS Next 2Y20.17%
EPS Next 3Y18.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.45%, ADI has a reasonable but not impressive dividend return.
ADI's Dividend Yield is rather good when compared to the industry average which is at 2.22. ADI pays more dividend than 84.82% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, ADI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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 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
ADI pays out 84.88% 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.
DP84.88%
EPS Next 2Y20.17%
EPS Next 3Y18.89%
NASDAQ:ADI (12/5/2025, 10:01:09 AM)
281.795
+4.54 (+1.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.65%
Inst Owner Change-0.79%
Ins Owners0.05%
Ins Owner Change-5.55%
Market Cap138.63B
Revenue(TTM)11.02B
Net Income(TTM)2.27B
Analysts79.51
Price Target274.03 (-2.76%)
Short Float %2.13%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend3.9
Dividend Growth(5Y)10.17%
DP84.88%
Div Incr Years21
Div Non Decr Years21
Ex-Date
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)0.99%
PT rev (3m)2.02%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)-0.78%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.17 | ||
| Fwd PE | 28.55 | ||
| P/S | 12.58 | ||
| P/FCF | 32.4 | ||
| P/OCF | 28.81 | ||
| P/B | 4.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.71 |
EPS(TTM)7.79
EY2.76%
EPS(NY)9.87
Fwd EY3.5%
FCF(TTM)8.7
FCFY3.09%
OCF(TTM)9.78
OCFY3.47%
SpS22.4
BVpS68.74
TBVpS-2.32
PEG (NY)1.36
PEG (5Y)3.74
Graham Number109.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 6.7% | ||
| ROCE | 6.71% | ||
| ROIC | 5.82% | ||
| ROICexc | 6.33% | ||
| ROICexgc | 39.97% | ||
| 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)5.78%
ROIC(5y)5.51%
ROICexc(3y)6.08%
ROICexc(5y)5.79%
ROICexgc(3y)38.77%
ROICexgc(5y)43.57%
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 | 6.61 |
F-Score8
WACC10.27%
ROIC/WACC0.57
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 Y26.69%
EPS Next 2Y20.17%
EPS Next 3Y18.89%
EPS Next 5Y20.64%
Revenue 1Y (TTM)16.89%
Revenue growth 3Y-2.84%
Revenue growth 5Y14.49%
Sales Q2Q%25.91%
Revenue Next Year17.49%
Revenue Next 2Y13.1%
Revenue Next 3Y12.32%
Revenue Next 5Y11.2%
EBIT growth 1Y45.04%
EBIT growth 3Y-6.89%
EBIT growth 5Y13.85%
EBIT Next Year47.89%
EBIT Next 3Y19.43%
EBIT Next 5Y19.62%
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.
Can you provide the valuation status for ANALOG DEVICES INC?
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.
What is the financial health of ANALOG DEVICES INC (ADI) stock?
The financial health rating of ANALOG DEVICES INC (ADI) is 5 / 10.
How sustainable is the dividend of ANALOG DEVICES INC (ADI) stock?
The dividend rating of ANALOG DEVICES INC (ADI) is 6 / 10 and the dividend payout ratio is 84.88%.