ANALOG DEVICES INC (ADI) Fundamental Analysis & Valuation

NASDAQ:ADI • US0326541051

Current stock price

318.14 USD
+15.04 (+4.96%)
At close:
321.1 USD
+2.96 (+0.93%)
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.
  • In the past year ADI had a positive cash flow from operations.
  • In the past 5 years ADI has always 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's Return On Assets of 5.64% is fine compared to the rest of the industry. ADI outperforms 71.30% of its industry peers.
  • The Return On Equity of ADI (8.01%) is better than 66.96% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 7.15%, ADI is in the better half of the industry, outperforming 73.04% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for ADI is below the industry average of 10.70%.
  • 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

  • With an excellent Profit Margin value of 23.02%, ADI belongs to the best of the industry, outperforming 83.48% of the companies in the same industry.
  • ADI's Profit Margin has been stable in the last couple of years.
  • The Operating Margin of ADI (29.70%) is better than 87.83% of its industry peers.
  • In the last couple of years the Operating Margin of ADI has remained more or less at the same level.
  • 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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5

2. ADI Health Analysis

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
  • Compared to 5 years ago, ADI has more shares outstanding
  • 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 7.45. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 7.45, ADI is doing good in the industry, outperforming 65.22% 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 has a better Debt to FCF ratio (1.90) than 66.96% 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.
  • The Debt to Equity ratio of ADI (0.23) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.9
Altman-Z 7.45
ROIC/WACC0.63
WACC11.38%
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.
  • The Current ratio of ADI (1.76) is worse than 80.87% 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 79.13% 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.
  • 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.
  • The Revenue has grown by 25.91% in the past year. This is a very strong growth!
  • 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

  • Based on estimates for the next years, ADI will show a very strong growth in Earnings Per Share. The EPS will grow by 22.39% 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 13.40% on average per year.
EPS Next Y46.68%
EPS Next 2Y29.29%
EPS Next 3Y23.98%
EPS Next 5Y22.39%
Revenue Next Year27.47%
Revenue Next 2Y18.32%
Revenue Next 3Y15.26%
Revenue Next 5Y13.4%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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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6

4. ADI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 36.91, the valuation of ADI can be described as expensive.
  • Based on the Price/Earnings ratio, ADI is valued a bit cheaper than the industry average as 73.04% of the companies are valued more expensively.
  • ADI is valuated rather expensively when we compare the Price/Earnings ratio to 25.35, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 24.43 indicates a rather expensive valuation of ADI.
  • Based on the Price/Forward Earnings ratio, ADI is valued a bit cheaper than the industry average as 73.04% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 22.61. ADI is around the same levels.
Industry RankSector Rank
PE 36.91
Fwd PE 24.43
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 72.17% of the companies listed in the same industry.
  • ADI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADI is cheaper than 80.87% of the companies in the same industry.
Industry RankSector Rank
P/FCF 34.06
EV/EBITDA 28.95
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 23.98% in the coming years.
PEG (NY)0.79
PEG (5Y)3.82
EPS Next 2Y29.29%
EPS Next 3Y23.98%

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

6

5. ADI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.40%, 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 87.83% of the companies in the same industry.
  • ADI's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.4%

5.2 History

  • On average, the dividend of ADI grows each year by 10.17%, which is quite nice.
  • 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 2026 1 2 3

5.3 Sustainability

  • 72.13% of the earnings are spent on dividend by ADI. 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 2Y29.29%
EPS Next 3Y23.98%
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 (3/31/2026, 8:18:29 PM)

Premarket: 321.1 +2.96 (+0.93%)

318.14

+15.04 (+4.96%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-18
Earnings (Next)05-20
Inst Owners93.41%
Inst Owner Change-1.27%
Ins Owners0.04%
Ins Owner Change-5.16%
Market Cap155.32B
Revenue(TTM)11.76B
Net Income(TTM)2.71B
Analysts80.47
Price Target385.12 (21.05%)
Short Float %1.93%
Short Ratio2.23
Dividend
Industry RankSector Rank
Dividend Yield 1.4%
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)1.51%
PT rev (3m)34.11%
EPS NQ rev (1m)0.65%
EPS NQ rev (3m)18.94%
EPS NY rev (1m)13.72%
EPS NY rev (3m)14.78%
Revenue NQ rev (1m)0.94%
Revenue NQ rev (3m)9.38%
Revenue NY rev (1m)6.33%
Revenue NY rev (3m)7.14%
Valuation
Industry RankSector Rank
PE 36.91
Fwd PE 24.43
P/S 13.21
P/FCF 34.06
P/OCF 30.73
P/B 4.6
P/tB N/A
EV/EBITDA 28.95
EPS(TTM)8.62
EY2.71%
EPS(NY)13.02
Fwd EY4.09%
FCF(TTM)9.34
FCFY2.94%
OCF(TTM)10.35
OCFY3.25%
SpS24.08
BVpS69.21
TBVpS-1.61
PEG (NY)0.79
PEG (5Y)3.82
Graham Number115.86
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 7.45
F-Score7
WACC11.38%
ROIC/WACC0.63
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 Y46.68%
EPS Next 2Y29.29%
EPS Next 3Y23.98%
EPS Next 5Y22.39%
Revenue 1Y (TTM)25.91%
Revenue growth 3Y-2.84%
Revenue growth 5Y14.49%
Sales Q2Q%30.42%
Revenue Next Year27.47%
Revenue Next 2Y18.32%
Revenue Next 3Y15.26%
Revenue Next 5Y13.4%
EBIT growth 1Y72.62%
EBIT growth 3Y-6.89%
EBIT growth 5Y13.85%
EBIT Next Year69.1%
EBIT Next 3Y26.27%
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 6 / 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 46.68% in the next year.