ANALOG DEVICES INC (ADI) Stock Fundamental Analysis

NASDAQ:ADI • US0326541051

332.325 USD
-4.78 (-1.42%)
Last: Feb 17, 2026, 09:57 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

ADI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make ADI suitable for growth investing!


Dividend Valuation Growth Profitability Health

7

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.
ADI Yearly Net Income VS EBIT VS OCF VS FCFADI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

1.2 Ratios

  • ADI has a better Return On Assets (4.72%) than 64.60% of its industry peers.
  • ADI has a better Return On Equity (6.70%) than 60.18% of its industry peers.
  • 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 10.64%.
  • 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 RankSector 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%
ADI Yearly ROA, ROE, ROICADI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • ADI's Profit Margin of 20.58% is amongst the best of the industry. ADI outperforms 81.42% of its industry peers.
  • ADI's Profit Margin has been stable in the last couple of years.
  • ADI has a Operating Margin of 27.25%. This is amongst the best in the industry. ADI outperforms 86.73% of its industry peers.
  • ADI's Operating Margin has been stable in the last couple of years.
  • ADI has a Gross Margin of 61.47%. This is amongst the best in the industry. ADI outperforms 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 RankSector 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%
ADI Yearly Profit, Operating, Gross MarginsADI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADI is destroying value.
  • The number of shares outstanding for ADI has been reduced compared to 1 year ago.
  • ADI has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, ADI has a worse debt to assets ratio.
ADI Yearly Shares OutstandingADI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
ADI Yearly Total Debt VS Total AssetsADI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • An Altman-Z score of 7.81 indicates that ADI is not in any danger for bankruptcy at the moment.
  • ADI's Altman-Z score of 7.81 is fine compared to the rest of the industry. ADI outperforms 67.26% 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's Debt to FCF ratio of 2.01 is fine compared to the rest of the industry. ADI outperforms 67.26% of its industry peers.
  • ADI has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
  • 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 RankSector Rank
Debt/Equity 0.25
Debt/FCF 2.01
Altman-Z 7.81
ROIC/WACC0.56
WACC10.68%
ADI Yearly LT Debt VS Equity VS FCFADI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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 70.80% 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.
  • The Quick ratio of ADI (1.68) is worse than 66.37% of its industry peers.
Industry RankSector Rank
Current Ratio 2.19
Quick Ratio 1.68
ADI Yearly Current Assets VS Current LiabilitesADI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

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%25.9%

3.2 Future

  • The Earnings Per Share is expected to grow by 16.92% on average over the next years. This is quite good.
  • ADI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.54% yearly.
EPS Next Y28.99%
EPS Next 2Y21.51%
EPS Next 3Y19.73%
EPS Next 5Y16.92%
Revenue Next Year19.66%
Revenue Next 2Y14.24%
Revenue Next 3Y13.14%
Revenue Next 5Y11.54%

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.
ADI Yearly Revenue VS EstimatesADI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B
ADI Yearly EPS VS EstimatesADI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 42.66 indicates a quite expensive valuation of ADI.
  • 70.80% of the companies in the same industry are more expensive than ADI, based on the Price/Earnings ratio.
  • ADI is valuated expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 33.07, ADI can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, ADI is valued a bit cheaper than 65.49% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 28.06. ADI is around the same levels.
Industry RankSector Rank
PE 42.66
Fwd PE 33.07
ADI Price Earnings VS Forward Price EarningsADI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 67.26% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, ADI is valued cheaper than 81.42% of the companies in the same industry.
Industry RankSector Rank
P/FCF 37.95
EV/EBITDA 33.37
ADI Per share dataADI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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 19.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.47
PEG (5Y)4.41
EPS Next 2Y21.51%
EPS Next 3Y19.73%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • ADI has a Yearly Dividend Yield of 1.20%.
  • ADI's Dividend Yield is rather good when compared to the industry average which is at 0.50. ADI pays more dividend than 85.84% of the companies in the same industry.
  • Compared to the average S&P500 Dividend Yield of 1.82, ADI is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.2%

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 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
ADI Yearly Dividends per shareADI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

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 2Y21.51%
EPS Next 3Y19.73%
ADI Yearly Income VS Free CF VS DividendADI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
ADI Dividend Payout.ADI Dividend Payout, showing the Payout Ratio.ADI Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

ANALOG DEVICES INC

NASDAQ:ADI (2/17/2026, 9:57:02 AM)

332.325

-4.78 (-1.42%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)11-25
Earnings (Next)02-18
Inst Owners93.84%
Inst Owner Change-0.81%
Ins Owners0.05%
Ins Owner Change-8.36%
Market Cap162.38B
Revenue(TTM)11.02B
Net Income(TTM)2.27B
Analysts79.53
Price Target314.73 (-5.29%)
Short Float %1.79%
Short Ratio2.35
Dividend
Industry RankSector Rank
Dividend Yield 1.2%
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)9.59%
PT rev (3m)15.41%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)6.26%
EPS NY rev (1m)0.93%
EPS NY rev (3m)6.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.84%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)5.65%
Valuation
Industry RankSector Rank
PE 42.66
Fwd PE 33.07
P/S 14.74
P/FCF 37.95
P/OCF 33.74
P/B 4.8
P/tB N/A
EV/EBITDA 33.37
EPS(TTM)7.79
EY2.34%
EPS(NY)10.05
Fwd EY3.02%
FCF(TTM)8.76
FCFY2.63%
OCF(TTM)9.85
OCFY2.96%
SpS22.55
BVpS69.21
TBVpS-2.34
PEG (NY)1.47
PEG (5Y)4.41
Graham Number110.14
Profitability
Industry RankSector 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 RankSector 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 7.81
F-Score8
WACC10.68%
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 Y28.99%
EPS Next 2Y21.51%
EPS Next 3Y19.73%
EPS Next 5Y16.92%
Revenue 1Y (TTM)16.89%
Revenue growth 3Y-2.84%
Revenue growth 5Y14.49%
Sales Q2Q%25.9%
Revenue Next Year19.66%
Revenue Next 2Y14.24%
Revenue Next 3Y13.14%
Revenue Next 5Y11.54%
EBIT growth 1Y45.04%
EBIT growth 3Y-6.89%
EBIT growth 5Y13.85%
EBIT Next Year57.54%
EBIT Next 3Y24%
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%.