ANALOG DEVICES INC (ADI) Stock Fundamental Analysis

NASDAQ:ADI • US0326541051

348.56 USD
+11.05 (+3.27%)
Last: Feb 18, 2026, 11:44 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Taking everything into account, ADI scores 6 out of 10 in our fundamental rating. 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 priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, ADI could be worth investigating further for growth investing!.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • ADI had positive earnings in the past year.
  • ADI had a positive operating cash flow in the past year.
  • 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.
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.
  • Looking at the Return On Equity, with a value of 6.70%, ADI is in the better half of the industry, outperforming 60.18% of the companies in the same industry.
  • ADI has a better Return On Invested Capital (6.01%) 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 has a Profit Margin of 20.58%. This is amongst the best in the industry. ADI outperforms 81.42% of its industry peers.
  • ADI's Profit Margin has been stable in the last couple of years.
  • With an excellent Operating Margin value of 27.25%, ADI belongs to the best of the industry, outperforming 86.73% of the companies in the same industry.
  • ADI's Operating Margin has been stable in the last couple of years.
  • ADI has a better Gross Margin (61.47%) 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

  • 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

  • ADI has an Altman-Z score of 7.82. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
  • ADI has a Altman-Z score of 7.82. This is in the better half of the industry: ADI outperforms 67.26% 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.
  • ADI has a Debt to FCF ratio of 2.01. This is in the better half 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.
  • 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 7.82
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

  • 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.
  • ADI has a Quick ratio of 1.68. This is in the lower half of the industry: ADI underperforms 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.
  • ADI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.67% yearly.
  • The Revenue has grown by 16.89% in the past year. This is quite good.
  • The Revenue has been growing by 14.49% on average over the past years. This is quite good.
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.
  • 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 Year19.66%
Revenue Next 2Y14.24%
Revenue Next 3Y13.14%
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 44.74, 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 70.80% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.16, ADI is valued quite expensively.
  • Based on the Price/Forward Earnings ratio of 34.69, 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 62.83% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of ADI to the average of the S&P500 Index (28.10), we can say ADI is valued slightly more expensively.
Industry RankSector Rank
PE 44.74
Fwd PE 34.69
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 cheaply inside the industry as 80.53% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 39.81
EV/EBITDA 33.41
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.
  • The decent profitability rating of ADI 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)1.54
PEG (5Y)4.63
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 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 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 (2/18/2026, 11:44:09 AM)

348.56

+11.05 (+3.27%)

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 Cap170.32B
Revenue(TTM)11.02B
Net Income(TTM)2.27B
Analysts79.53
Price Target314.73 (-9.71%)
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 44.74
Fwd PE 34.69
P/S 15.46
P/FCF 39.81
P/OCF 35.39
P/B 5.04
P/tB N/A
EV/EBITDA 33.41
EPS(TTM)7.79
EY2.23%
EPS(NY)10.05
Fwd EY2.88%
FCF(TTM)8.76
FCFY2.51%
OCF(TTM)9.85
OCFY2.83%
SpS22.55
BVpS69.21
TBVpS-2.34
PEG (NY)1.54
PEG (5Y)4.63
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 7.82
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%.