ANALOG DEVICES INC (ADI) Fundamental Analysis & Valuation

NASDAQ:ADI • US0326541051

Current stock price

383.26 USD
-9.33 (-2.38%)
At close:
389.48 USD
+6.22 (+1.62%)
Pre-Market:

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

  • ADI had positive earnings in the past year.
  • ADI had a positive operating cash flow in the past year.
  • 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's Return On Assets of 5.64% is fine compared to the rest 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.
  • With a decent Return On Invested Capital value of 7.15%, ADI is doing good in the industry, outperforming 73.04% of the companies in the same industry.
  • ADI had an Average Return On Invested Capital over the past 3 years of 5.97%. This is below the industry average of 10.73%.
  • 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 Profit Margin of 23.02%. This is amongst the best in the industry. ADI outperforms 83.48% 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's Operating Margin of 29.70% is amongst the best of the industry. ADI outperforms 87.83% of its industry peers.
  • ADI's Operating Margin has been stable in the last couple of years.
  • ADI's Gross Margin of 62.84% is amongst the best of 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADI is destroying value.
  • The number of shares outstanding for ADI has been reduced compared to 1 year ago.
  • Compared to 5 years ago, ADI has more shares outstanding
  • 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 8.79 indicates that ADI is not in any danger for bankruptcy at the moment.
  • ADI has a better Altman-Z score (8.79) than 62.61% of its industry peers.
  • 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.
  • The Debt to FCF ratio of ADI (1.90) is better than 66.96% of its industry peers.
  • 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 8.79
ROIC/WACC0.56
WACC12.73%
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 has a worse Current ratio (1.76) than 83.48% of its industry peers.
  • A Quick Ratio of 1.35 indicates that ADI should not have too much problems paying its short term obligations.
  • The Quick ratio of ADI (1.35) is worse than 82.61% 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.
  • The Earnings Per Share has been growing by 9.67% on average over the past years. This is quite good.
  • Looking at the last year, ADI shows a very strong growth in Revenue. The Revenue has grown by 25.91%.
  • Measured over the past years, ADI shows a quite strong growth in Revenue. The Revenue has been growing by 14.49% on average per year.
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 22.39% on average over the next years. This is a very strong growth
  • ADI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.06% yearly.
EPS Next Y47.12%
EPS Next 2Y29.93%
EPS Next 3Y24.64%
EPS Next 5Y22.39%
Revenue Next Year27.97%
Revenue Next 2Y18.78%
Revenue Next 3Y15.89%
Revenue Next 5Y14.06%

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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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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5

4. ADI Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 44.46 indicates a quite expensive valuation of ADI.
  • Based on the Price/Earnings ratio, ADI is valued a bit cheaper than 74.78% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.91, ADI is valued quite expensively.
  • With a Price/Forward Earnings ratio of 29.14, ADI can be considered very expensive at the moment.
  • 75.65% of the companies in the same industry are more expensive than ADI, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of ADI to the average of the S&P500 Index (21.99), we can say ADI is valued slightly more expensively.
Industry RankSector Rank
PE 44.46
Fwd PE 29.14
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 73.04% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ADI is valued cheaper than 81.74% of the companies in the same industry.
Industry RankSector Rank
P/FCF 41.03
EV/EBITDA 34.77
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • ADI has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as ADI's earnings are expected to grow with 24.64% in the coming years.
PEG (NY)0.94
PEG (5Y)4.6
EPS Next 2Y29.93%
EPS Next 3Y24.64%

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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 1.09%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.42, ADI pays a better dividend. On top of this ADI pays more dividend than 86.96% of the companies listed in the same industry.
  • With a Dividend Yield of 1.09, ADI pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.09%

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 Years22
Div Non Decr Years22
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.
  • ADI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP72.13%
EPS Next 2Y29.93%
EPS Next 3Y24.64%
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 (4/28/2026, 8:11:57 PM)

Premarket: 389.48 +6.22 (+1.62%)

383.26

-9.33 (-2.38%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Industry Strength90.68
Industry Growth93.79
Earnings (Last)02-18
Earnings (Next)05-20
Inst Owners93.34%
Inst Owner Change-0.15%
Ins Owners0.05%
Ins Owner Change-3.72%
Market Cap187.11B
Revenue(TTM)11.76B
Net Income(TTM)2.71B
Analysts81.95
Price Target387.23 (1.04%)
Short Float %2.05%
Short Ratio2.58
Dividend
Industry RankSector Rank
Dividend Yield 1.09%
Yearly Dividend3.9
Dividend Growth(5Y)10.17%
DP72.13%
Div Incr Years22
Div Non Decr Years22
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)2.07%
PT rev (3m)33.43%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)18.26%
EPS NY rev (1m)0.3%
EPS NY rev (3m)14.34%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)9.14%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)7.06%
Valuation
Industry RankSector Rank
PE 44.46
Fwd PE 29.14
P/S 15.91
P/FCF 41.03
P/OCF 37.02
P/B 5.54
P/tB N/A
EV/EBITDA 34.77
EPS(TTM)8.62
EY2.25%
EPS(NY)13.15
Fwd EY3.43%
FCF(TTM)9.34
FCFY2.44%
OCF(TTM)10.35
OCFY2.7%
SpS24.08
BVpS69.21
TBVpS-1.61
PEG (NY)0.94
PEG (5Y)4.6
Graham Number115.857 (-69.77%)
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 8.79
F-Score7
WACC12.73%
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 Y47.12%
EPS Next 2Y29.93%
EPS Next 3Y24.64%
EPS Next 5Y22.39%
Revenue 1Y (TTM)25.91%
Revenue growth 3Y-2.84%
Revenue growth 5Y14.49%
Sales Q2Q%30.42%
Revenue Next Year27.97%
Revenue Next 2Y18.78%
Revenue Next 3Y15.89%
Revenue Next 5Y14.06%
EBIT growth 1Y72.62%
EBIT growth 3Y-6.89%
EBIT growth 5Y13.85%
EBIT Next Year71.18%
EBIT Next 3Y26.75%
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 5 / 10 to ANALOG DEVICES INC (ADI). This can be considered as Fairly Valued.


Can you provide the profitability details for ANALOG DEVICES INC?

ANALOG DEVICES INC (ADI) has a profitability rating of 7 / 10.


What is the financial health of ANALOG DEVICES INC (ADI) stock?

The financial health rating of ANALOG DEVICES INC (ADI) is 5 / 10.


Can you provide the expected EPS growth for ADI stock?

The Earnings per Share (EPS) of ANALOG DEVICES INC (ADI) is expected to grow by 47.12% in the next year.