ANALOG DEVICES INC (ADI) Stock Fundamental Analysis

NASDAQ:ADI • US0326541051

345.3 USD
-1.07 (-0.31%)
At close: Feb 19, 2026
345.2 USD
-0.1 (-0.03%)
After Hours: 2/19/2026, 8:00:01 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

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. While ADI has a great profitability rating, 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 could make ADI a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

7

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.
  • In the past 5 years ADI has always been profitable.
  • In the past 5 years ADI always reported a positive cash flow from operatings.
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

  • The Return On Assets of ADI (4.72%) is better than 64.60% of its industry peers.
  • ADI's Return On Equity of 6.70% is fine compared to the rest 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.
  • 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(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

  • ADI's Profit Margin of 20.58% is amongst the best of the industry. ADI outperforms 81.42% of its industry peers.
  • 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 86.73% of its industry peers.
  • ADI's Operating Margin has been stable in the last couple of years.
  • Looking at the Gross Margin, with a value of 61.47%, ADI belongs to the top of the industry, outperforming 85.84% of the companies in the same industry.
  • 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.
  • 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.
  • 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

  • An Altman-Z score of 8.00 indicates that ADI is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 8.00, ADI is doing good in the industry, outperforming 67.26% of the companies in the same industry.
  • 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.
  • With a decent Debt to FCF ratio value of 2.01, ADI is doing good in the industry, outperforming 66.37% of the companies in the same industry.
  • A Debt/Equity ratio of 0.25 indicates that ADI is not too dependend on debt financing.
  • The Debt to Equity ratio of ADI (0.25) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 2.01
Altman-Z 8
ROIC/WACC0.56
WACC10.72%
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

  • A Current Ratio of 2.19 indicates that ADI has no problem at all paying its short term obligations.
  • The Current ratio of ADI (2.19) is worse than 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.
  • Looking at the Quick ratio, with a value of 1.68, ADI is doing worse than 66.37% of the companies in the same industry.
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%.
  • The Revenue has been growing by 14.49% on average over the past years. This is quite good.
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

  • ADI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.92% yearly.
  • Based on estimates for the next years, ADI will show a quite strong growth in Revenue. The Revenue will grow by 11.54% on average per year.
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

  • 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 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

4

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 40.06, ADI can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 75.22% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.09, ADI is valued a bit more expensive.
  • ADI is valuated quite expensively with a Price/Forward Earnings ratio of 30.02.
  • 69.91% 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 27.98, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 40.06
Fwd PE 30.02
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

  • 67.26% of the companies in the same industry are more expensive than ADI, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 79.65% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 39.43
EV/EBITDA 34.28
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.
  • ADI's earnings are expected to grow with 19.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.38
PEG (5Y)4.14
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 paid a dividend for at least 10 years, which is 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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ANALOG DEVICES INC

NASDAQ:ADI (2/19/2026, 8:00:01 PM)

After market: 345.2 -0.1 (-0.03%)

345.3

-1.07 (-0.31%)

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 Cap168.72B
Revenue(TTM)11.02B
Net Income(TTM)2.27B
Analysts79.53
Price Target314.73 (-8.85%)
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 40.06
Fwd PE 30.02
P/S 15.31
P/FCF 39.43
P/OCF 35.06
P/B 4.99
P/tB N/A
EV/EBITDA 34.28
EPS(TTM)8.62
EY2.5%
EPS(NY)11.5
Fwd EY3.33%
FCF(TTM)8.76
FCFY2.54%
OCF(TTM)9.85
OCFY2.85%
SpS22.55
BVpS69.21
TBVpS-2.34
PEG (NY)1.38
PEG (5Y)4.14
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 8
F-Score8
WACC10.72%
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%.