ANALOG DEVICES INC (ADI) Stock Fundamental Analysis
USA - NASDAQ:ADI - US0326541051 - Common Stock
233.51 USD
-0.62 (-0.26%)
We assign a fundamental rating of 5 out of 10 to ADI. ADI was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. ADI has an average financial health and profitability rating. ADI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.06%, ADI is in the better half of the industry, outperforming 66.07% of the companies in the same industry.
ADI's Return On Equity of 5.74% is fine compared to the rest of the industry. ADI outperforms 63.39% of its industry peers.
ADI has a Return On Invested Capital of 5.21%. This is in the better half of the industry: ADI outperforms 65.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADI is below the industry average of 11.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 5.74% | ||
| ROIC | 5.21% |
ROA(3y)5.22%
ROA(5y)4.8%
ROE(3y)7.17%
ROE(5y)7.07%
ROIC(3y)6.33%
ROIC(5y)5.91%
1.3 Margins
The Profit Margin of ADI (18.85%) is better than 82.14% of its industry peers.
In the last couple of years the Profit Margin of ADI has declined.
With an excellent Operating Margin value of 25.32%, ADI belongs to the best of the industry, outperforming 83.93% of the companies in the same industry.
ADI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 60.15%, ADI belongs to the top of the industry, outperforming 86.61% of the companies in the same industry.
In the last couple of years the Gross Margin of ADI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.32% | ||
| PM (TTM) | 18.85% | ||
| GM | 60.15% |
OM growth 3Y-5.6%
OM growth 5Y-6.15%
PM growth 3Y-2.98%
PM growth 5Y-5.24%
GM growth 3Y-2.63%
GM growth 5Y-3.15%
2. Health
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 remains at a similar level compared to 1 year ago.
ADI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ADI is higher compared to a year ago.
2.2 Solvency
ADI has an Altman-Z score of 5.69. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
ADI's Altman-Z score of 5.69 is fine compared to the rest of the industry. ADI outperforms 60.71% of its industry peers.
The Debt to FCF ratio of ADI is 2.36, which is a good value as it means it would take ADI, 2.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ADI (2.36) is better than 66.07% of its industry peers.
ADI has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
ADI's Debt to Equity ratio of 0.25 is in line compared to the rest of the industry. ADI outperforms 45.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 5.69 |
ROIC/WACC0.45
WACC11.71%
2.3 Liquidity
A Current Ratio of 2.32 indicates that ADI has no problem at all paying its short term obligations.
ADI has a Current ratio of 2.32. This is in the lower half of the industry: ADI underperforms 65.18% of its industry peers.
ADI has a Quick Ratio of 1.79. This is a normal value and indicates that ADI is financially healthy and should not expect problems in meeting its short term obligations.
ADI's Quick ratio of 1.79 is on the low side compared to the rest of the industry. ADI is outperformed by 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.14% over the past year.
ADI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.42% yearly.
ADI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.08%.
Measured over the past years, ADI shows a quite strong growth in Revenue. The Revenue has been growing by 9.49% on average per year.
EPS 1Y (TTM)7.14%
EPS 3Y-0.26%
EPS 5Y4.42%
EPS Q2Q%29.75%
Revenue 1Y (TTM)7.08%
Revenue growth 3Y8.81%
Revenue growth 5Y9.49%
Sales Q2Q%24.57%
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 20.93% on average per year.
ADI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.86% yearly.
EPS Next Y22.62%
EPS Next 2Y21.93%
EPS Next 3Y20.11%
EPS Next 5Y20.93%
Revenue Next Year16.6%
Revenue Next 2Y14.91%
Revenue Next 3Y12.82%
Revenue Next 5Y12.86%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 32.43, which means the current valuation is very expensive for ADI.
Compared to the rest of the industry, the Price/Earnings ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 71.43% of the companies listed in the same industry.
ADI is valuated rather expensively when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.62, ADI is valued on the expensive side.
70.54% of the companies in the same industry are more expensive than ADI, based on the Price/Forward Earnings ratio.
ADI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.43 | ||
| Fwd PE | 24.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADI is valued a bit cheaper than 67.86% of the companies in the same industry.
ADI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ADI is cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.23 | ||
| EV/EBITDA | 25.51 |
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 20.11% in the coming years.
PEG (NY)1.43
PEG (5Y)7.34
EPS Next 2Y21.93%
EPS Next 3Y20.11%
5. Dividend
5.1 Amount
ADI has a Yearly Dividend Yield of 1.70%.
Compared to an average industry Dividend Yield of 2.14, ADI pays a better dividend. On top of this ADI pays more dividend than 86.61% of the companies listed in the same industry.
ADI's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
On average, the dividend of ADI grows each year by 11.42%, which is quite nice.
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)11.42%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
ADI pays out 96.76% 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.
DP96.76%
EPS Next 2Y21.93%
EPS Next 3Y20.11%
NASDAQ:ADI (11/3/2025, 10:39:01 AM)
233.51
-0.62 (-0.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.65%
Inst Owner Change-0.7%
Ins Owners0.05%
Ins Owner Change-5.52%
Market Cap114.88B
Revenue(TTM)10.39B
Net Income(TTM)1.96B
Analysts79.5
Price Target272.69 (16.78%)
Short Float %1.49%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend3.62
Dividend Growth(5Y)11.42%
DP96.76%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.79%
Min EPS beat(2)3.92%
Max EPS beat(2)7.67%
EPS beat(4)4
Avg EPS beat(4)4.3%
Min EPS beat(4)1.02%
Max EPS beat(4)7.67%
EPS beat(8)7
Avg EPS beat(8)3.83%
EPS beat(12)10
Avg EPS beat(12)3.3%
EPS beat(16)14
Avg EPS beat(16)4%
Revenue beat(2)2
Avg Revenue beat(2)3.55%
Min Revenue beat(2)2.87%
Max Revenue beat(2)4.23%
Revenue beat(4)4
Avg Revenue beat(4)2.3%
Min Revenue beat(4)0.46%
Max Revenue beat(4)4.23%
Revenue beat(8)6
Avg Revenue beat(8)1.3%
Revenue beat(12)9
Avg Revenue beat(12)1.14%
Revenue beat(16)13
Avg Revenue beat(16)1.27%
PT rev (1m)0.5%
PT rev (3m)7.49%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)9.44%
EPS NY rev (1m)0.05%
EPS NY rev (3m)4.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.8%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)2.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.43 | ||
| Fwd PE | 24.62 | ||
| P/S | 11.06 | ||
| P/FCF | 31.23 | ||
| P/OCF | 27.6 | ||
| P/B | 3.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.51 |
EPS(TTM)7.2
EY3.08%
EPS(NY)9.48
Fwd EY4.06%
FCF(TTM)7.48
FCFY3.2%
OCF(TTM)8.46
OCFY3.62%
SpS21.11
BVpS69.29
TBVpS-2.57
PEG (NY)1.43
PEG (5Y)7.34
Graham Number105.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 5.74% | ||
| ROCE | 5.82% | ||
| ROIC | 5.21% | ||
| ROICexc | 5.64% | ||
| ROICexgc | 34.34% | ||
| OM | 25.32% | ||
| PM (TTM) | 18.85% | ||
| GM | 60.15% | ||
| FCFM | 35.41% |
ROA(3y)5.22%
ROA(5y)4.8%
ROE(3y)7.17%
ROE(5y)7.07%
ROIC(3y)6.33%
ROIC(5y)5.91%
ROICexc(3y)6.53%
ROICexc(5y)6.17%
ROICexgc(3y)44.45%
ROICexgc(5y)45.96%
ROCE(3y)7.03%
ROCE(5y)6.55%
ROICexgc growth 3Y-18.89%
ROICexgc growth 5Y-14.51%
ROICexc growth 3Y4.4%
ROICexc growth 5Y-12.69%
OM growth 3Y-5.6%
OM growth 5Y-6.15%
PM growth 3Y-2.98%
PM growth 5Y-5.24%
GM growth 3Y-2.63%
GM growth 5Y-3.15%
F-Score8
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 1.87 | ||
| Cap/Depr | 23.9% | ||
| Cap/Sales | 4.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.44% | ||
| Profit Quality | 187.9% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 5.69 |
F-Score8
WACC11.71%
ROIC/WACC0.45
Cap/Depr(3y)40.05%
Cap/Depr(5y)34.52%
Cap/Sales(3y)7.94%
Cap/Sales(5y)6.29%
Profit Quality(3y)145.19%
Profit Quality(5y)151.71%
High Growth Momentum
Growth
EPS 1Y (TTM)7.14%
EPS 3Y-0.26%
EPS 5Y4.42%
EPS Q2Q%29.75%
EPS Next Y22.62%
EPS Next 2Y21.93%
EPS Next 3Y20.11%
EPS Next 5Y20.93%
Revenue 1Y (TTM)7.08%
Revenue growth 3Y8.81%
Revenue growth 5Y9.49%
Sales Q2Q%24.57%
Revenue Next Year16.6%
Revenue Next 2Y14.91%
Revenue Next 3Y12.82%
Revenue Next 5Y12.86%
EBIT growth 1Y17.06%
EBIT growth 3Y2.72%
EBIT growth 5Y2.76%
EBIT Next Year63.45%
EBIT Next 3Y24.53%
EBIT Next 5Y19.93%
FCF growth 1Y-0.31%
FCF growth 3Y9.29%
FCF growth 5Y9.56%
OCF growth 1Y-12.92%
OCF growth 3Y12.1%
OCF growth 5Y11.33%
ANALOG DEVICES INC / ADI FAQ
What is the fundamental rating for ADI stock?
ChartMill assigns a fundamental rating of 5 / 10 to ADI.
Can you provide the valuation status for ANALOG DEVICES INC?
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 6 / 10.
What is the financial health of ANALOG DEVICES INC (ADI) stock?
The financial health rating of ANALOG DEVICES INC (ADI) is 5 / 10.
How sustainable is the dividend of ANALOG DEVICES INC (ADI) stock?
The dividend rating of ANALOG DEVICES INC (ADI) is 6 / 10 and the dividend payout ratio is 96.76%.