300.25 USD
-1.85 (-0.61%)
301.5 USD
+1.25 (+0.42%)
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. 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. With these ratings, ADI could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
- In the past year ADI was profitable.
- ADI had a positive operating cash flow in the past year.
- ADI had positive earnings in each of the past 5 years.
- In the past 5 years ADI always reported a positive cash flow from operatings.
1.2 Ratios
- ADI has a better Return On Assets (4.72%) than 68.14% 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 62.83% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 6.01%, ADI is in the better half of the industry, outperforming 68.14% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ADI is below the industry average of 10.75%.
- 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
- With an excellent Profit Margin value of 20.58%, ADI belongs to the best of the industry, outperforming 81.42% of the companies in the same industry.
- 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 85.84% of its industry peers.
- 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 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADI is destroying value.
- Compared to 1 year ago, ADI has less shares outstanding
- ADI has more shares outstanding than it did 5 years ago.
- ADI has a worse debt/assets ratio than last year.
2.2 Solvency
- ADI has an Altman-Z score of 7.10. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 7.10, ADI is doing good in the industry, outperforming 63.72% 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.
- Looking at the Debt to FCF ratio, with a value of 2.01, ADI is in the better half of the industry, outperforming 69.03% of the companies in the same industry.
- ADI has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
- ADI has a Debt to Equity ratio (0.25) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 7.1 |
ROIC/WACC0.56
WACC10.67%
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 has a worse Quick ratio (1.68) than 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.
- 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)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 11.46% on average per year.
EPS Next Y27.8%
EPS Next 2Y20.53%
EPS Next 3Y19.13%
EPS Next 5Y16.92%
Revenue Next Year18.97%
Revenue Next 2Y13.56%
Revenue Next 3Y12.69%
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.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 38.54, ADI can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, ADI is valued a bit cheaper than the industry average as 73.45% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, ADI is valued a bit more expensive.
- A Price/Forward Earnings ratio of 30.16 indicates a quite expensive valuation of ADI.
- Based on the Price/Forward Earnings ratio, ADI is valued a bit cheaper than 69.91% of the companies in the same industry.
- ADI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.54 | ||
| Fwd PE | 30.16 |
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.
- 81.42% 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 | 34.36 | ||
| EV/EBITDA | 30.02 |
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 19.13% in the coming years.
PEG (NY)1.39
PEG (5Y)3.99
EPS Next 2Y20.53%
EPS Next 3Y19.13%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.32%, 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 0.53. ADI pays more dividend than 84.96% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.89, ADI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
- On average, the dividend of ADI grows each year by 10.17%, which is quite nice.
- 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
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 2Y20.53%
EPS Next 3Y19.13%
300.25
-1.85 (-0.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)11-25 2025-11-25/bmo
Earnings (Next)02-17 2026-02-17/bmo
Inst Owners93.84%
Inst Owner Change-0.09%
Ins Owners0.05%
Ins Owner Change-8.91%
Market Cap147.02B
Revenue(TTM)11.02B
Net Income(TTM)2.27B
Analysts80.49
Price Target287.18 (-4.35%)
Short Float %2.25%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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)1.73%
PT rev (3m)5.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.81%
EPS NY rev (1m)0.88%
EPS NY rev (3m)5.01%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)4.77%
Revenue NY rev (1m)1.26%
Revenue NY rev (3m)5.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.54 | ||
| Fwd PE | 30.16 | ||
| P/S | 13.34 | ||
| P/FCF | 34.36 | ||
| P/OCF | 30.55 | ||
| P/B | 4.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.02 |
EPS(TTM)7.79
EY2.59%
EPS(NY)9.96
Fwd EY3.32%
FCF(TTM)8.74
FCFY2.91%
OCF(TTM)9.83
OCFY3.27%
SpS22.51
BVpS69.06
TBVpS-2.33
PEG (NY)1.39
PEG (5Y)3.99
Graham Number110.02
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 7.1 |
F-Score8
WACC10.67%
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 Y27.8%
EPS Next 2Y20.53%
EPS Next 3Y19.13%
EPS Next 5Y16.92%
Revenue 1Y (TTM)16.89%
Revenue growth 3Y-2.84%
Revenue growth 5Y14.49%
Sales Q2Q%25.9%
Revenue Next Year18.97%
Revenue Next 2Y13.56%
Revenue Next 3Y12.69%
Revenue Next 5Y11.46%
EBIT growth 1Y45.04%
EBIT growth 3Y-6.89%
EBIT growth 5Y13.85%
EBIT Next Year57.13%
EBIT Next 3Y23.65%
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%.