ANALOG DEVICES INC (ADI) Stock Fundamental Analysis
NASDAQ:ADI - Nasdaq - US0326541051 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ADI. ADI was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. ADI has an average financial health and profitability rating. ADI has a correct valuation and a medium 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.
ADI had positive earnings in each of the past 5 years.
In the past 5 years ADI always reported a positive cash flow from operatings.
1.2 Ratios
ADI's Return On Assets of 3.87% is fine compared to the rest of the industry. ADI outperforms 61.82% of its industry peers.
With a decent Return On Equity value of 5.23%, ADI is doing good in the industry, outperforming 60.91% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.64%, ADI is doing good in the industry, outperforming 61.82% of the companies in the same industry.
ADI had an Average Return On Invested Capital over the past 3 years of 6.33%. This is below the industry average of 10.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 5.23% | ||
| ROIC | 4.64% |
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
Looking at the Profit Margin, with a value of 18.65%, ADI belongs to the top of the industry, outperforming 83.64% of the companies in the same industry.
In the last couple of years the Profit Margin of ADI has declined.
ADI has a better Operating Margin (23.53%) than 83.64% of its industry peers.
ADI's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 58.76%, ADI belongs to the best of the industry, outperforming 83.64% of the companies in the same industry.
ADI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.53% | ||
| PM (TTM) | 18.65% | ||
| GM | 58.76% |
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.
Compared to 1 year ago, ADI has about the same amount of shares outstanding.
ADI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ADI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.31 indicates that ADI is not in any danger for bankruptcy at the moment.
The Altman-Z score of ADI (6.31) is better than 68.18% of its industry peers.
ADI has a debt to FCF ratio of 2.19. This is a good value and a sign of high solvency as ADI would need 2.19 years to pay back of all of its debts.
ADI has a better Debt to FCF ratio (2.19) than 67.27% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that ADI is not too dependend on debt financing.
The Debt to Equity ratio of ADI (0.21) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.19 | ||
| Altman-Z | 6.31 |
ROIC/WACC0.41
WACC11.43%
2.3 Liquidity
ADI has a Current Ratio of 2.08. This indicates that ADI is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.08, ADI is not doing good in the industry: 70.91% of the companies in the same industry are doing better.
ADI has a Quick Ratio of 1.51. 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 (1.51) than 71.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
ADI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.80%.
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 decrease in Revenue. In the last year, the revenue decreased by -6.17%.
The Revenue has been growing by 9.49% on average over the past years. This is quite good.
EPS 1Y (TTM)-11.8%
EPS 3Y-0.26%
EPS 5Y4.42%
EPS Q2Q%32.14%
Revenue 1Y (TTM)-6.17%
Revenue growth 3Y8.81%
Revenue growth 5Y9.49%
Sales Q2Q%22.28%
3.2 Future
The Earnings Per Share is expected to grow by 19.79% on average over the next years. This is quite good.
Based on estimates for the next years, ADI will show a quite strong growth in Revenue. The Revenue will grow by 11.94% on average per year.
EPS Next Y17.74%
EPS Next 2Y18.38%
EPS Next 3Y18.83%
EPS Next 5Y19.79%
Revenue Next Year13.53%
Revenue Next 2Y12.58%
Revenue Next 3Y12.54%
Revenue Next 5Y11.94%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 35.08, the valuation of ADI can be described as expensive.
ADI's Price/Earnings ratio is a bit cheaper when compared to the industry. ADI is cheaper than 61.82% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.85. ADI is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 26.41, which means the current valuation is very expensive for ADI.
ADI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, ADI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.08 | ||
| Fwd PE | 26.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADI is valued a bit cheaper than the industry average as 60.91% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ADI is valued a bit cheaper than the industry average as 69.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.58 | ||
| EV/EBITDA | 27.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ADI does not grow enough to justify the current Price/Earnings ratio.
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 18.83% in the coming years.
PEG (NY)1.98
PEG (5Y)7.94
EPS Next 2Y18.38%
EPS Next 3Y18.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.68%, ADI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.42, ADI pays a better dividend. On top of this ADI pays more dividend than 86.36% of the companies listed in the same industry.
ADI's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of ADI is nicely growing with an annual growth rate of 11.42%!
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)11.42%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
ADI pays out 101.60% 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.
DP101.6%
EPS Next 2Y18.38%
EPS Next 3Y18.83%
NASDAQ:ADI (8/20/2025, 9:41:09 AM)
236.12
+5.68 (+2.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners92.52%
Inst Owner Change-0.96%
Ins Owners0.05%
Ins Owner Change7.23%
Market Cap117.17B
Analysts78.89
Price Target257.27 (8.96%)
Short Float %1.65%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend3.62
Dividend Growth(5Y)11.42%
DP101.6%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.14%
Min EPS beat(2)4.61%
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)6
Avg EPS beat(8)3.06%
EPS beat(12)10
Avg EPS beat(12)3.2%
EPS beat(16)14
Avg EPS beat(16)4.08%
Revenue beat(2)2
Avg Revenue beat(2)2.94%
Min Revenue beat(2)1.64%
Max Revenue beat(2)4.23%
Revenue beat(4)4
Avg Revenue beat(4)1.75%
Min Revenue beat(4)0.46%
Max Revenue beat(4)4.23%
Revenue beat(8)5
Avg Revenue beat(8)0.75%
Revenue beat(12)9
Avg Revenue beat(12)0.96%
Revenue beat(16)13
Avg Revenue beat(16)1.19%
PT rev (1m)3.95%
PT rev (3m)6.62%
EPS NQ rev (1m)0.52%
EPS NQ rev (3m)7.06%
EPS NY rev (1m)0%
EPS NY rev (3m)3.82%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)5.05%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.08 | ||
| Fwd PE | 26.41 | ||
| P/S | 11.93 | ||
| P/FCF | 35.58 | ||
| P/OCF | 30.42 | ||
| P/B | 3.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.1 |
EPS(TTM)6.73
EY2.85%
EPS(NY)8.94
Fwd EY3.79%
FCF(TTM)6.64
FCFY2.81%
OCF(TTM)7.76
OCFY3.29%
SpS19.79
BVpS70.55
TBVpS-1.45
PEG (NY)1.98
PEG (5Y)7.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 5.23% | ||
| ROCE | 5.17% | ||
| ROIC | 4.64% | ||
| ROICexc | 4.89% | ||
| ROICexgc | 29.54% | ||
| OM | 23.53% | ||
| PM (TTM) | 18.65% | ||
| GM | 58.76% | ||
| FCFM | 33.54% |
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%
ROICexcg growth 3Y-18.89%
ROICexcg 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-Score5
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.19 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 27.02% | ||
| Cap/Sales | 5.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.99% | ||
| Profit Quality | 179.84% | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 6.31 |
F-Score5
WACC11.43%
ROIC/WACC0.41
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)-11.8%
EPS 3Y-0.26%
EPS 5Y4.42%
EPS Q2Q%32.14%
EPS Next Y17.74%
EPS Next 2Y18.38%
EPS Next 3Y18.83%
EPS Next 5Y19.79%
Revenue 1Y (TTM)-6.17%
Revenue growth 3Y8.81%
Revenue growth 5Y9.49%
Sales Q2Q%22.28%
Revenue Next Year13.53%
Revenue Next 2Y12.58%
Revenue Next 3Y12.54%
Revenue Next 5Y11.94%
EBIT growth 1Y-14.28%
EBIT growth 3Y2.72%
EBIT growth 5Y2.76%
EBIT Next Year50.92%
EBIT Next 3Y21.96%
EBIT Next 5Y18.89%
FCF growth 1Y-16.73%
FCF growth 3Y9.29%
FCF growth 5Y9.56%
OCF growth 1Y-21.15%
OCF growth 3Y12.1%
OCF growth 5Y11.33%