ANALOG DEVICES INC (ADI) Fundamental Analysis & Valuation

NASDAQ:ADI • US0326541051

341.51 USD
+2.52 (+0.74%)
At close: Mar 4, 2026
342.27 USD
+0.76 (+0.22%)
Pre-Market: 3/5/2026, 4:51:29 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to ADI. ADI was compared to 115 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 priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make ADI a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

7

1. ADI Profitability Analysis

1.1 Basic Checks

  • In the past year ADI was profitable.
  • ADI had a positive operating cash flow in the past year.
  • Each year in the past 5 years ADI has been profitable.
  • 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

  • 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.
  • With a decent Return On Equity value of 8.01%, ADI is doing good in the industry, outperforming 66.09% of the companies in the same industry.
  • ADI has a better Return On Invested Capital (7.15%) than 73.04% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ADI is below the industry average of 10.50%.
  • The last Return On Invested Capital (7.15%) for ADI is above the 3 year average (5.97%), which is a sign of increasing profitability.
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 has a better Profit Margin (23.02%) than 82.61% 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 better Operating Margin (29.70%) than 88.70% of its industry peers.
  • ADI's Operating Margin has been stable in the last couple of years.
  • ADI has a Gross Margin of 62.84%. This is amongst the best in the industry. ADI outperforms 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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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. ADI Health Analysis

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.
  • Compared to 1 year ago, ADI has a worse debt to assets ratio.
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 7.93. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 7.93, ADI is doing good in the industry, outperforming 66.09% of the companies in the same industry.
  • The Debt to FCF ratio of ADI is 1.90, which is an excellent value as it means it would take ADI, only 1.90 years of fcf income to pay off all of its debts.
  • ADI's Debt to FCF ratio of 1.90 is fine compared to the rest of the industry. ADI outperforms 67.83% of its industry peers.
  • ADI has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
  • ADI has a Debt to Equity ratio of 0.23. This is comparable to the rest of the industry: ADI outperforms 45.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.9
Altman-Z 7.93
ROIC/WACC0.65
WACC11.02%
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 1.76 indicates that ADI should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.76, ADI is doing worse than 80.87% of the companies in the same industry.
  • 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.
  • With a Quick ratio value of 1.35, ADI is not doing good in the industry: 79.13% of the companies in the same industry are doing better.
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

  • 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.
  • 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.
  • Looking at the last year, ADI shows a very strong growth in Revenue. The Revenue has grown by 25.91%.
  • 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)25.91%
Revenue growth 3Y-2.84%
Revenue growth 5Y14.49%
Sales Q2Q%30.42%

3.2 Future

  • The Earnings Per Share is expected to grow by 16.92% on average over the next years. This is quite good.
  • ADI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.54% yearly.
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.
  • 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

5

4. ADI Valuation Analysis

4.1 Price/Earnings Ratio

  • ADI is valuated quite expensively with a Price/Earnings ratio of 39.62.
  • Based on the Price/Earnings ratio, ADI is valued a bit cheaper than 73.04% of the companies in the same industry.
  • ADI is valuated rather expensively when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
  • ADI is valuated quite expensively with a Price/Forward Earnings ratio of 29.69.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 68.70% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 25.11. ADI is around the same levels.
Industry RankSector Rank
PE 39.62
Fwd PE 29.69
ADI Price Earnings VS Forward Price EarningsADI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ADI is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
  • 80.87% of the companies in the same industry are more expensive than ADI, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 36.59
EV/EBITDA 31.07
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.
  • ADI's earnings are expected to grow with 19.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.37
PEG (5Y)4.1
EPS Next 2Y21.51%
EPS Next 3Y19.73%

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

6

5. ADI Dividend Analysis

5.1 Amount

  • ADI has a Yearly Dividend Yield of 1.24%.
  • ADI's Dividend Yield is rather good when compared to the industry average which is at 0.47. ADI pays more dividend than 86.96% of the companies in the same industry.
  • ADI's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.24%

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 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 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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ADI Fundamentals: All Metrics, Ratios and Statistics

ANALOG DEVICES INC

NASDAQ:ADI (3/4/2026, 8:07:28 PM)

Premarket: 342.27 +0.76 (+0.22%)

341.51

+2.52 (+0.74%)

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-1.38%
Ins Owners0.05%
Ins Owner Change-8.8%
Market Cap166.87B
Revenue(TTM)11.76B
Net Income(TTM)2.71B
Analysts79.53
Price Target379.39 (11.09%)
Short Float %1.68%
Short Ratio2.07
Dividend
Industry RankSector Rank
Dividend Yield 1.24%
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)30.73%
PT rev (3m)38.45%
EPS NQ rev (1m)17.35%
EPS NQ rev (3m)26.17%
EPS NY rev (1m)0.25%
EPS NY rev (3m)6.78%
Revenue NQ rev (1m)8.06%
Revenue NQ rev (3m)14.5%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)5.84%
Valuation
Industry RankSector Rank
PE 39.62
Fwd PE 29.69
P/S 14.19
P/FCF 36.59
P/OCF 33.02
P/B 4.94
P/tB N/A
EV/EBITDA 31.07
EPS(TTM)8.62
EY2.52%
EPS(NY)11.5
Fwd EY3.37%
FCF(TTM)9.33
FCFY2.73%
OCF(TTM)10.34
OCFY3.03%
SpS24.06
BVpS69.15
TBVpS-1.61
PEG (NY)1.37
PEG (5Y)4.1
Graham Number115.81
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 7.93
F-Score7
WACC11.02%
ROIC/WACC0.65
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)25.91%
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 1Y72.62%
EBIT growth 3Y-6.89%
EBIT growth 5Y13.85%
EBIT Next Year67.31%
EBIT Next 3Y26.02%
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 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 72.13%.