316.86 USD
+5.98 (+1.92%)
At close: Feb 2, 2026
313.97 USD
-2.89 (-0.91%)
After Hours: 2/2/2026, 4:30:00 PM
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. ADI has an excellent profitability rating, but 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! This makes ADI very considerable 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.
- ADI had positive earnings in each of the past 5 years.
- ADI had a positive operating cash flow in each of the past 5 years.
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.
- With a decent Return On Equity value of 6.70%, ADI is doing good in the industry, outperforming 61.95% of the companies in the same industry.
- The Return On Invested Capital of ADI (6.01%) is better than 68.14% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ADI is below the industry average of 10.85%.
- 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 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
- 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.
- The Operating Margin of ADI (27.25%) is better 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.
- In the last couple of years the Gross Margin of ADI has remained more or less at the same level.
| 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.
- ADI has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ADI has more shares outstanding
- The debt/assets ratio for ADI is higher compared to a year ago.
2.2 Solvency
- ADI has an Altman-Z score of 7.28. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
- ADI's Altman-Z score of 7.28 is fine compared to the rest of the industry. ADI outperforms 64.60% 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.
- The Debt to FCF ratio of ADI (2.01) is better than 69.03% of its industry peers.
- A Debt/Equity ratio of 0.25 indicates that ADI is not too dependend on debt financing.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 7.28 |
ROIC/WACC0.55
WACC10.85%
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 has a Current ratio of 2.19. This is in the lower half of the industry: ADI underperforms 72.57% 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'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.
- Looking at the last year, ADI shows a quite strong growth in Revenue. The Revenue has grown by 16.89% in the last year.
- 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.
- ADI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.46% yearly.
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.
- 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
- A Price/Earnings ratio of 40.68 indicates a quite expensive valuation of ADI.
- Compared to the rest of the industry, the Price/Earnings ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 72.57% of the companies listed in the same industry.
- ADI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.32.
- Based on the Price/Forward Earnings ratio of 31.61, 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 69.03% of the companies are valued more expensively.
- ADI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.68 | ||
| Fwd PE | 31.61 |
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.
- 80.53% of the companies in the same industry are more expensive than ADI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.26 | ||
| EV/EBITDA | 30.88 |
4.3 Compensation for Growth
- ADI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of ADI 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)1.42
PEG (5Y)4.21
EPS Next 2Y21.32%
EPS Next 3Y19.58%
5. Dividend
5.1 Amount
- ADI has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.50, 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 1.83, ADI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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
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 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%.