300.25 USD
-1.85 (-0.61%)
301.5 USD
+1.25 (+0.42%)
Taking everything into account, ADI scores 6 out of 10 in our fundamental rating. ADI was compared to 113 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. These ratings could make ADI a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
- ADI had positive earnings in the past year.
- In the past year ADI had a positive cash flow from operations.
- In the past 5 years ADI has always been profitable.
- ADI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ADI has a better Return On Assets (4.72%) than 68.14% of its industry peers.
- The Return On Equity of ADI (6.70%) is better than 62.83% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.01%, ADI is in the better half of the industry, outperforming 68.14% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ADI is below the industry average of 10.75%.
- The 3 year average ROIC (5.97%) for ADI is below the current ROIC(6.01%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 20.58%, ADI belongs to the top of the industry, outperforming 81.42% 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 (27.25%) is better than 85.84% of its industry peers.
- ADI's Operating Margin has been stable in the last couple of years.
- ADI has a better Gross Margin (61.47%) than 85.84% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADI is destroying value.
- The number of shares outstanding for ADI has been reduced compared to 1 year ago.
- 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
- ADI has an Altman-Z score of 7.06. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
- ADI has a better Altman-Z score (7.06) than 63.72% of its industry peers.
- ADI has a debt to FCF ratio of 2.01. This is a good value and a sign of high solvency as ADI would need 2.01 years to pay back of all of its debts.
- ADI's Debt to FCF ratio of 2.01 is fine compared to the rest of the industry. ADI outperforms 69.03% of its industry peers.
- A Debt/Equity ratio of 0.25 indicates that ADI is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.25, ADI is in line with its industry, outperforming 45.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 7.06 |
ROIC/WACC0.56
WACC10.74%
2.3 Liquidity
- ADI has a Current Ratio of 2.19. This indicates that ADI is financially healthy and has no problem in meeting its short term obligations.
- ADI's Current ratio of 2.19 is on the low side compared to the rest of the industry. ADI is outperformed by 72.57% of its industry peers.
- A Quick Ratio of 1.68 indicates that ADI should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.68, ADI is not doing good in the industry: 67.26% of the companies in the same industry are doing better.
| 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.
- ADI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.67% yearly.
- 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%25.9%
3.2 Future
- The Earnings Per Share is expected to grow by 16.92% on average over the next years. This is quite good.
- The Revenue is expected to grow by 11.46% on average over the next years. This is quite good.
EPS Next Y27.8%
EPS Next 2Y20.53%
EPS Next 3Y19.13%
EPS Next 5Y16.92%
Revenue Next Year19.29%
Revenue Next 2Y13.71%
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.
- 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
- With a Price/Earnings ratio of 38.54, ADI can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, ADI is valued a bit cheaper than the industry average as 73.45% of the companies are valued more expensively.
- ADI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.38.
- A Price/Forward Earnings ratio of 30.16 indicates a quite expensive valuation of ADI.
- ADI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADI is cheaper than 69.91% of the companies in the same industry.
- ADI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.54 | ||
| Fwd PE | 30.16 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ADI is valued a bit cheaper than the industry average as 68.14% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADI indicates a rather cheap valuation: ADI is cheaper than 80.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.36 | ||
| EV/EBITDA | 29.84 |
4.3 Compensation for Growth
- ADI's 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.
- A more expensive valuation may be justified as ADI's earnings are expected to grow with 19.13% in the coming years.
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.
- ADI's Dividend Yield is rather good when compared to the industry average which is at 0.51. ADI pays more dividend than 84.96% of the companies in the same industry.
- ADI's Dividend Yield is slightly below the S&P500 average, which is at 1.85.
| 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 paid a dividend for at least 10 years, which is 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
- 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-0.1%
Ins Owners0.05%
Ins Owner Change-9.01%
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)2.8%
PT rev (3m)6.95%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)5.9%
EPS NY rev (1m)0.88%
EPS NY rev (3m)5.01%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)4.8%
Revenue NY rev (1m)1.53%
Revenue NY rev (3m)5.38%
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 | 29.84 |
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 | 7.06 |
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 Year19.29%
Revenue Next 2Y13.71%
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%.