ANALOG DEVICES INC (ADI) Stock Fundamental Analysis

NASDAQ:ADI • US0326541051

355.03 USD
+9.73 (+2.82%)
At close: Feb 20, 2026
355.45 USD
+0.42 (+0.12%)
After Hours: 2/20/2026, 8:15:55 PM
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. 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. 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.
  • In the past year ADI had a positive cash flow from operations.
  • 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.
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

  • Looking at the Return On Assets, with a value of 4.72%, ADI is in the better half of the industry, outperforming 65.49% of the companies in the same industry.
  • ADI has a Return On Equity of 6.70%. This is in the better half of the industry: ADI outperforms 60.18% of its industry peers.
  • The Return On Invested Capital of ADI (6.01%) is better 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 10.65%.
  • The 3 year average ROIC (5.97%) for ADI is below the current ROIC(6.01%), indicating increased profibility in the last year.
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

  • The Profit Margin of ADI (20.58%) is better than 82.30% of its industry peers.
  • 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 86.73% of its industry peers.
  • In the last couple of years the Operating Margin of ADI has remained more or less at the same level.
  • The Gross Margin of ADI (61.47%) is better than 85.84% of its industry peers.
  • ADI's Gross Margin has been stable in the last couple of years.
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

  • ADI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for ADI has been reduced compared to 1 year ago.
  • The number of shares outstanding for ADI has been increased compared to 5 years ago.
  • ADI has a worse debt/assets ratio than last year.
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

  • ADI has an Altman-Z score of 7.98. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 7.98, ADI is doing good in the industry, outperforming 67.26% 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.
  • ADI's Debt to FCF ratio of 2.01 is fine compared to the rest of the industry. ADI outperforms 66.37% 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 RankSector Rank
Debt/Equity 0.25
Debt/FCF 2.01
Altman-Z 7.98
ROIC/WACC0.56
WACC10.71%
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.
  • The Current ratio of ADI (2.19) is worse than 70.80% 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 has a worse Quick ratio (1.68) 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 37.26%, 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.
  • ADI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.89%.
  • 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)37.26%
EPS 3Y-6.69%
EPS 5Y9.67%
EPS Q2Q%50.92%
Revenue 1Y (TTM)16.89%
Revenue growth 3Y-2.84%
Revenue growth 5Y14.49%
Sales Q2Q%30.42%

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 11.54% on average over the next years. This is quite good.
EPS Next Y28.99%
EPS Next 2Y21.51%
EPS Next 3Y19.73%
EPS Next 5Y16.92%
Revenue Next Year19.88%
Revenue Next 2Y14.42%
Revenue Next 3Y13.33%
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.
  • 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.
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

4

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 41.19, which means the current valuation is very expensive for ADI.
  • ADI's Price/Earnings ratio is a bit cheaper when compared to the industry. ADI is cheaper than 75.22% of the companies in the same industry.
  • ADI is valuated expensively when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 30.87, which means the current valuation is very expensive for ADI.
  • ADI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADI is cheaper than 70.80% of the companies in the same industry.
  • ADI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 41.19
Fwd PE 30.87
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

  • ADI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADI is cheaper than 67.26% of the companies in the same industry.
  • ADI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ADI is cheaper than 79.65% of the companies in the same industry.
Industry RankSector Rank
P/FCF 40.55
EV/EBITDA 34.18
ADI Per share dataADI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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 19.73% in the coming years.
PEG (NY)1.42
PEG (5Y)4.26
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

  • With a Yearly Dividend Yield of 1.27%, 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 0.50. ADI pays more dividend than 85.84% of the companies in the same industry.
  • Compared to the average S&P500 Dividend Yield of 1.85, ADI is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.27%

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 (2/20/2026, 8:15:55 PM)

After market: 355.45 +0.42 (+0.12%)

355.03

+9.73 (+2.82%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-18
Earnings (Next)05-20
Inst Owners93.84%
Inst Owner Change-0.81%
Ins Owners0.05%
Ins Owner Change-8.36%
Market Cap173.48B
Revenue(TTM)11.02B
Net Income(TTM)2.27B
Analysts79.53
Price Target314.73 (-11.35%)
Short Float %1.79%
Short Ratio2.35
Dividend
Industry RankSector Rank
Dividend Yield 1.27%
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 41.19
Fwd PE 30.87
P/S 15.74
P/FCF 40.55
P/OCF 36.05
P/B 5.13
P/tB N/A
EV/EBITDA 34.18
EPS(TTM)8.62
EY2.43%
EPS(NY)11.5
Fwd EY3.24%
FCF(TTM)8.76
FCFY2.47%
OCF(TTM)9.85
OCFY2.77%
SpS22.55
BVpS69.21
TBVpS-2.34
PEG (NY)1.42
PEG (5Y)4.26
Graham Number115.86
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 7.98
F-Score8
WACC10.71%
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)37.26%
EPS 3Y-6.69%
EPS 5Y9.67%
EPS Q2Q%50.92%
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%30.42%
Revenue Next Year19.88%
Revenue Next 2Y14.42%
Revenue Next 3Y13.33%
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 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%.