300.25 USD
-1.85 (-0.61%)
301.5 USD
+1.25 (+0.42%)
Taking everything into account, ADI scores 6 out of 10 in our fundamental rating. ADI was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. While ADI belongs to the best of the industry regarding profitability, 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 would make ADI suitable for growth investing!
1. Profitability
1.1 Basic Checks
- ADI had positive earnings in the past year.
- ADI had a positive operating cash flow in the past year.
- In the past 5 years ADI has always been profitable.
- Each year in the past 5 years ADI had a positive operating cash flow.
1.2 Ratios
- ADI has a better Return On Assets (4.72%) than 68.14% of its industry peers.
- With a decent Return On Equity value of 6.70%, ADI is doing good in 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 3 year average ROIC (5.97%) for ADI is below the current ROIC(6.01%), indicating increased profibility in the last year.
| 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
- ADI's Profit Margin of 20.58% is amongst the best of the industry. ADI outperforms 81.42% 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 (27.25%) than 85.84% of its industry peers.
- ADI's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 61.47%, ADI belongs to the top of the industry, outperforming 85.84% of the companies in the same industry.
- In the last couple of years the Gross Margin of ADI has remained more or less at the same level.
| 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
- 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
- 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.
2.2 Solvency
- ADI has an Altman-Z score of 7.06. This indicates that ADI is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of ADI (7.06) is better than 63.72% of its industry peers.
- ADI has a debt to FCF ratio of 2.01. This is a good value and a sign of high solvency as ADI would need 2.01 years to pay back of all of its debts.
- The Debt to FCF ratio of ADI (2.01) is better than 69.03% 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 has a Debt to Equity ratio of 0.25. This is comparable to the rest of the industry: ADI outperforms 45.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 7.06 |
ROIC/WACC0.56
WACC10.71%
2.3 Liquidity
- A Current Ratio of 2.19 indicates that ADI has no problem at all paying 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's Quick ratio of 1.68 is on the low side compared to the rest of the industry. ADI is outperformed by 67.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
- ADI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.10%, 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.
- ADI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.89%.
- ADI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.49% yearly.
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
- ADI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.92% yearly.
- The Revenue is expected to grow by 11.46% on average over the next years. This is quite good.
EPS Next Y27.8%
EPS Next 2Y20.53%
EPS Next 3Y19.13%
EPS Next 5Y16.92%
Revenue Next Year19.29%
Revenue Next 2Y13.71%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 38.54, which means the current valuation is very expensive for ADI.
- 73.45% of the companies in the same industry are more expensive than ADI, based on the Price/Earnings ratio.
- ADI is valuated rather expensively when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 30.16, ADI can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, ADI is valued a bit cheaper than the industry average as 69.91% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, ADI is valued a bit more expensive.
| 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.
- Based on the Price/Free Cash Flow ratio, ADI is valued cheaper than 80.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.36 | ||
| EV/EBITDA | 29.84 |
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 19.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.39
PEG (5Y)3.99
EPS Next 2Y20.53%
EPS Next 3Y19.13%
5. Dividend
5.1 Amount
- ADI has a Yearly Dividend Yield of 1.31%.
- Compared to an average industry Dividend Yield of 0.51, ADI pays a better dividend. On top of this ADI pays more dividend than 84.96% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.84, ADI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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
5.3 Sustainability
- 84.88% of the earnings are spent on dividend by ADI. 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-0.1%
Ins Owners0.05%
Ins Owner Change-9.01%
Market Cap147.02B
Revenue(TTM)11.02B
Net Income(TTM)2.27B
Analysts80.49
Price Target290.2 (-3.35%)
Short Float %2.25%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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)2.8%
PT rev (3m)6.95%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)5.9%
EPS NY rev (1m)0.88%
EPS NY rev (3m)5.01%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)4.8%
Revenue NY rev (1m)1.53%
Revenue NY rev (3m)5.38%
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 | 29.84 |
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 | 7.06 |
F-Score8
WACC10.71%
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 Year19.29%
Revenue Next 2Y13.71%
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%.