316.02 USD
-2.68 (-0.84%)
Last: Jan 30, 2026, 09:50 AM
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. 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! With these ratings, ADI could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
- ADI had positive earnings in the past year.
- ADI had a positive operating cash flow in the past year.
- Each year in the past 5 years ADI has been profitable.
- Each year in the past 5 years ADI had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.72%, ADI is in the better half of the industry, outperforming 67.26% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 6.70%, ADI is in the better half of the industry, outperforming 61.95% 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 10.79%.
- 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
- The Profit Margin of ADI (20.58%) is better than 81.42% of its industry peers.
- ADI's Profit Margin has been stable in the last couple of years.
- ADI has a better Operating Margin (27.25%) 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.
- 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.
- ADI has less shares outstanding than it did 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 7.44. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 7.44, ADI is doing good in the industry, outperforming 64.60% of the companies in the same industry.
- 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.
- ADI has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.25, ADI perfoms like the industry average, outperforming 45.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 7.44 |
ROIC/WACC0.55
WACC10.86%
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 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.
- The Quick ratio of ADI (1.68) is worse than 67.26% 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.
- ADI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.67% yearly.
- The Revenue has grown by 16.89% in the past year. This is quite good.
- 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.
- Based on estimates for the next years, ADI will show a quite strong growth in Revenue. The Revenue will grow by 11.46% on average per year.
EPS Next Y28.67%
EPS Next 2Y21.32%
EPS Next 3Y19.58%
EPS Next 5Y16.92%
Revenue Next Year19.54%
Revenue Next 2Y14.05%
Revenue Next 3Y12.88%
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
- Based on the Price/Earnings ratio of 40.57, the valuation of ADI can be described as expensive.
- 73.45% of the companies in the same industry are more expensive than ADI, based on the Price/Earnings ratio.
- ADI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.39.
- ADI is valuated quite expensively with a Price/Forward Earnings ratio of 31.53.
- Based on the Price/Forward Earnings ratio, ADI is valued a bit cheaper than the industry average as 69.03% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of ADI to the average of the S&P500 Index (25.72), we can say ADI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.57 | ||
| Fwd PE | 31.53 |
4.2 Price Multiples
- ADI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADI is cheaper than 68.14% of the companies in the same industry.
- ADI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADI is cheaper than 80.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.17 | ||
| EV/EBITDA | 31.64 |
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.
- ADI's earnings are expected to grow with 19.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.41
PEG (5Y)4.19
EPS Next 2Y21.32%
EPS Next 3Y19.58%
5. Dividend
5.1 Amount
- ADI has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.49, ADI pays a better dividend. On top of this ADI pays more dividend than 84.96% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.82, ADI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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
- 84.88% of the earnings are spent on dividend by ADI. 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 2Y21.32%
EPS Next 3Y19.58%
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 4 / 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%.