ANALOG DEVICES INC (ADI) Fundamental Analysis & Valuation

NASDAQ:ADI • US0326541051

Current stock price

307.44 USD
-5.98 (-1.91%)
At close:
307.44 USD
0 (0%)
After Hours:

This ADI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. ADI Profitability Analysis

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

  • ADI has a Return On Assets of 5.64%. This is in the better half of the industry: ADI outperforms 71.30% of its industry peers.
  • ADI has a Return On Equity of 8.01%. This is in the better half of the industry: ADI outperforms 66.96% of its industry peers.
  • ADI's Return On Invested Capital of 7.15% is fine compared to the rest of the industry. ADI outperforms 73.04% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ADI is below the industry average of 10.70%.
  • The 3 year average ROIC (5.97%) for ADI is below the current ROIC(7.15%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.64%
ROE 8.01%
ROIC 7.15%
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 23.02% is amongst the best of the industry. ADI outperforms 83.48% of its industry peers.
  • ADI's Profit Margin has been stable in the last couple of years.
  • Looking at the Operating Margin, with a value of 29.70%, ADI belongs to the top of the industry, outperforming 87.83% of the companies in the same industry.
  • ADI's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of ADI (62.84%) is better than 88.70% of its industry peers.
  • ADI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 29.7%
PM (TTM) 23.02%
GM 62.84%
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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5

2. ADI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADI is destroying value.
  • Compared to 1 year ago, ADI has less shares outstanding
  • The number of shares outstanding for ADI has been increased compared to 5 years ago.
  • The debt/assets ratio for ADI is higher compared to a year ago.
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 7.35 indicates that ADI is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 7.35, ADI is doing good in the industry, outperforming 64.35% of the companies in the same industry.
  • ADI has a debt to FCF ratio of 1.90. This is a very positive value and a sign of high solvency as it would only need 1.90 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.90, ADI is in the better half of the industry, outperforming 66.96% of the companies in the same industry.
  • A Debt/Equity ratio of 0.23 indicates that ADI is not too dependend on debt financing.
  • ADI has a Debt to Equity ratio of 0.23. This is comparable to the rest of the industry: ADI outperforms 46.09% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.9
Altman-Z 7.35
ROIC/WACC0.62
WACC11.49%
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 1.76. 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 Current ratio of 1.76 is on the low side compared to the rest of the industry. ADI is outperformed by 80.87% of its industry peers.
  • ADI has a Quick Ratio of 1.35. This is a normal value and indicates that ADI is financially healthy and should not expect problems in meeting its short term obligations.
  • ADI has a worse Quick ratio (1.35) than 79.13% of its industry peers.
Industry RankSector Rank
Current Ratio 1.76
Quick Ratio 1.35
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

8

3. ADI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 37.26% over the past year.
  • 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.
  • The Revenue has grown by 25.91% in the past year. This is a very strong growth!
  • 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)25.91%
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 very strong growth in Earnings Per Share. The EPS will grow by 22.39% on average per year.
  • ADI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.40% yearly.
EPS Next Y46.68%
EPS Next 2Y29.29%
EPS Next 3Y23.98%
EPS Next 5Y22.39%
Revenue Next Year27.47%
Revenue Next 2Y18.32%
Revenue Next 3Y15.26%
Revenue Next 5Y13.4%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last 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 20B
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 20

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6

4. ADI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 35.67, the valuation of ADI can be described as expensive.
  • Based on the Price/Earnings ratio, ADI is valued a bit cheaper than the industry average as 74.78% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of ADI to the average of the S&P500 Index (24.88), we can say ADI is valued slightly more expensively.
  • With a Price/Forward Earnings ratio of 23.61, ADI is valued on the expensive side.
  • 73.04% of the companies in the same industry are more expensive than ADI, based on the Price/Forward Earnings ratio.
  • ADI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 35.67
Fwd PE 23.61
ADI Price Earnings VS Forward Price EarningsADI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ADI is valued a bit cheaper than the industry average as 72.17% 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 81.74% of the companies in the same industry.
Industry RankSector Rank
P/FCF 32.91
EV/EBITDA 28.53
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of ADI may justify a higher PE ratio.
  • ADI's earnings are expected to grow with 23.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)3.69
EPS Next 2Y29.29%
EPS Next 3Y23.98%

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

6

5. ADI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.40%, ADI has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.50, ADI pays a better dividend. On top of this ADI pays more dividend than 87.83% of the companies listed in the same industry.
  • Compared to the average S&P500 Dividend Yield of 1.90, ADI is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.4%

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 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
ADI Yearly Dividends per shareADI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • ADI pays out 72.13% 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.
DP72.13%
EPS Next 2Y29.29%
EPS Next 3Y23.98%
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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ADI Fundamentals: All Metrics, Ratios and Statistics

ANALOG DEVICES INC

NASDAQ:ADI (3/27/2026, 8:00:00 PM)

After market: 307.44 0 (0%)

307.44

-5.98 (-1.91%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-18
Earnings (Next)05-20
Inst Owners93.41%
Inst Owner Change-1.27%
Ins Owners0.04%
Ins Owner Change-5.16%
Market Cap150.09B
Revenue(TTM)11.76B
Net Income(TTM)2.71B
Analysts80.47
Price Target385.12 (25.27%)
Short Float %1.75%
Short Ratio2.01
Dividend
Industry RankSector Rank
Dividend Yield 1.4%
Yearly Dividend3.9
Dividend Growth(5Y)10.17%
DP72.13%
Div Incr Years21
Div Non Decr Years21
Ex-Date03-03
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.07%
Min EPS beat(2)0.75%
Max EPS beat(2)5.38%
EPS beat(4)4
Avg EPS beat(4)4.43%
Min EPS beat(4)0.75%
Max EPS beat(4)7.67%
EPS beat(8)8
Avg EPS beat(8)4.61%
EPS beat(12)10
Avg EPS beat(12)3.04%
EPS beat(16)14
Avg EPS beat(16)3.83%
Revenue beat(2)2
Avg Revenue beat(2)0.84%
Min Revenue beat(2)0.39%
Max Revenue beat(2)1.29%
Revenue beat(4)4
Avg Revenue beat(4)2.19%
Min Revenue beat(4)0.39%
Max Revenue beat(4)4.23%
Revenue beat(8)8
Avg Revenue beat(8)1.63%
Revenue beat(12)9
Avg Revenue beat(12)0.94%
Revenue beat(16)13
Avg Revenue beat(16)1.23%
PT rev (1m)20.55%
PT rev (3m)34.39%
EPS NQ rev (1m)18.11%
EPS NQ rev (3m)18.94%
EPS NY rev (1m)13.72%
EPS NY rev (3m)15.78%
Revenue NQ rev (1m)9.07%
Revenue NQ rev (3m)9.38%
Revenue NY rev (1m)6.33%
Revenue NY rev (3m)8.49%
Valuation
Industry RankSector Rank
PE 35.67
Fwd PE 23.61
P/S 12.77
P/FCF 32.91
P/OCF 29.7
P/B 4.44
P/tB N/A
EV/EBITDA 28.53
EPS(TTM)8.62
EY2.8%
EPS(NY)13.02
Fwd EY4.24%
FCF(TTM)9.34
FCFY3.04%
OCF(TTM)10.35
OCFY3.37%
SpS24.08
BVpS69.21
TBVpS-1.61
PEG (NY)0.76
PEG (5Y)3.69
Graham Number115.86
Profitability
Industry RankSector Rank
ROA 5.64%
ROE 8.01%
ROCE 8%
ROIC 7.15%
ROICexc 7.87%
ROICexgc 56.61%
OM 29.7%
PM (TTM) 23.02%
GM 62.84%
FCFM 38.79%
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-Score7
Asset Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.9
Debt/EBITDA 1.42
Cap/Depr 25.02%
Cap/Sales 4.2%
Interest Coverage 250
Cash Conversion 92.46%
Profit Quality 168.46%
Current Ratio 1.76
Quick Ratio 1.35
Altman-Z 7.35
F-Score7
WACC11.49%
ROIC/WACC0.62
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 Y46.68%
EPS Next 2Y29.29%
EPS Next 3Y23.98%
EPS Next 5Y22.39%
Revenue 1Y (TTM)25.91%
Revenue growth 3Y-2.84%
Revenue growth 5Y14.49%
Sales Q2Q%30.42%
Revenue Next Year27.47%
Revenue Next 2Y18.32%
Revenue Next 3Y15.26%
Revenue Next 5Y13.4%
EBIT growth 1Y72.62%
EBIT growth 3Y-6.89%
EBIT growth 5Y13.85%
EBIT Next Year69.1%
EBIT Next 3Y26.27%
EBIT Next 5Y20.25%
FCF growth 1Y40.66%
FCF growth 3Y4.25%
FCF growth 5Y18.35%
OCF growth 1Y11.07%
OCF growth 3Y2.45%
OCF growth 5Y19.1%

ANALOG DEVICES INC / ADI Fundamental Analysis 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 6 / 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 72.13%.