ANALOG DEVICES INC (ADI) Fundamental Analysis & Valuation

NASDAQ:ADI • US0326541051

Current stock price

318.14 USD
+15.04 (+4.96%)
At close:
318.14 USD
0 (0%)
After Hours:

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

  • In the past year ADI was profitable.
  • In the past year ADI had a positive cash flow from operations.
  • In the past 5 years ADI has always been profitable.
  • In the past 5 years ADI always reported a positive cash flow from operatings.
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

  • Looking at the Return On Assets, with a value of 5.64%, ADI is in the better half of the industry, outperforming 71.30% of the companies in the same industry.
  • The Return On Equity of ADI (8.01%) is better than 66.96% of its industry peers.
  • ADI has a better Return On Invested Capital (7.15%) than 73.04% of its industry peers.
  • ADI had an Average Return On Invested Capital over the past 3 years of 5.97%. This is below the industry average of 10.70%.
  • The 3 year average ROIC (5.97%) for ADI is below the current ROIC(7.15%), indicating increased profibility in the last year.
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's Profit Margin of 23.02% is amongst the best of the industry. ADI outperforms 83.48% of its industry peers.
  • ADI's Profit Margin has been stable in the last couple of years.
  • ADI has a Operating Margin of 29.70%. This is amongst the best in the industry. ADI outperforms 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.
  • With an excellent Gross Margin value of 62.84%, ADI belongs to the best of the industry, outperforming 88.70% 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 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

  • ADI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • ADI has less shares outstanding than it did 1 year ago.
  • 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

  • An Altman-Z score of 7.14 indicates that ADI is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 7.14, 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 Debt to FCF ratio of 1.90. This is in the better half of the industry: ADI outperforms 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 7.14
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.
  • With a Current ratio value of 1.76, ADI is not doing good in the industry: 80.87% of the companies in the same industry are doing better.
  • 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.
  • ADI has a worse Quick ratio (1.35) 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

  • 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.
  • 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

  • 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

  • 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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last 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 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.
  • Compared to an average S&P500 Price/Earnings ratio of 24.75, ADI is valued a bit more expensive.
  • ADI is valuated rather expensively with a Price/Forward Earnings ratio of 24.43.
  • 72.17% 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 (22.10), we can say ADI is valued inline with the index average.
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

  • Based on the Enterprise Value to EBITDA ratio, ADI is valued a bit cheaper than the industry average as 71.30% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADI indicates a rather cheap valuation: ADI is cheaper than 80.87% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 34.06
EV/EBITDA 27.61
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.
  • The decent profitability rating of ADI may justify a higher PE ratio.
  • ADI's earnings are expected to grow with 23.98% in the coming years. This may justify a more expensive valuation.
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 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.
  • ADI's earnings are growing more than its dividend. This makes the dividend growth 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, 5:20:00 PM)

After market: 318.14 0 (0%)

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 27.61
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 7.14
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.


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%.