297.99 USD
+1.78 (+0.6%)
297.99 USD
0 (0%)
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 has an excellent profitability rating, but 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.
- 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
- ADI's Return On Assets of 4.72% is fine compared to the rest of the industry. ADI outperforms 68.14% of its industry peers.
- ADI's Return On Equity of 6.70% is fine compared to the rest of the industry. ADI outperforms 62.83% of its industry peers.
- ADI's Return On Invested Capital of 6.01% is fine compared to the rest of the industry. ADI outperforms 68.14% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- With an excellent Profit Margin value of 20.58%, ADI belongs to the best 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.
- ADI has a Operating Margin of 27.25%. This is amongst the best in the industry. ADI outperforms 85.84% of its industry peers.
- ADI's Operating Margin has been stable in the last couple of years.
- ADI's Gross Margin of 61.47% is amongst the best of the industry. ADI outperforms 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.
- 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 6.98 indicates that ADI is not in any danger for bankruptcy at the moment.
- ADI has a better Altman-Z score (6.98) 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.
- ADI has a Debt to FCF ratio of 2.01. This is in the better half 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.
- ADI has a Debt to Equity ratio of 0.25. This is comparable 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 | 6.98 |
ROIC/WACC0.56
WACC10.66%
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.
- ADI's Quick ratio of 1.68 is on the low side compared to the rest of the industry. ADI is outperformed by 67.26% of its industry peers.
| 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.
- The Earnings Per Share has been growing by 9.67% on average over the past years. This is quite good.
- 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.
- 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 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
- Based on the Price/Earnings ratio of 38.25, the valuation of ADI can be described as expensive.
- 72.57% 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 27.30.
- Based on the Price/Forward Earnings ratio of 29.93, the valuation of ADI can be described as expensive.
- Based on the Price/Forward Earnings ratio, ADI is valued a bit cheaper than the industry average as 69.91% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of ADI to the average of the S&P500 Index (24.04), we can say ADI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.25 | ||
| Fwd PE | 29.93 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ADI is valued a bit cheaper than the industry average as 69.03% of the companies are valued more expensively.
- ADI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADI is cheaper than 82.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.1 | ||
| EV/EBITDA | 29.44 |
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)1.38
PEG (5Y)3.96
EPS Next 2Y20.53%
EPS Next 3Y19.13%
5. Dividend
5.1 Amount
- ADI has a Yearly Dividend Yield of 1.32%.
- Compared to an average industry Dividend Yield of 0.53, 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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 84.88% of its income as dividend. 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%
297.99
+1.78 (+0.6%)
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 Cap145.91B
Revenue(TTM)11.02B
Net Income(TTM)2.27B
Analysts80.49
Price Target287.18 (-3.63%)
Short Float %2.25%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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 | 38.25 | ||
| Fwd PE | 29.93 | ||
| P/S | 13.24 | ||
| P/FCF | 34.1 | ||
| P/OCF | 30.32 | ||
| P/B | 4.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.44 |
EPS(TTM)7.79
EY2.61%
EPS(NY)9.96
Fwd EY3.34%
FCF(TTM)8.74
FCFY2.93%
OCF(TTM)9.83
OCFY3.3%
SpS22.51
BVpS69.06
TBVpS-2.33
PEG (NY)1.38
PEG (5Y)3.96
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 | 6.98 |
F-Score8
WACC10.66%
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%.