ANALOG DEVICES INC (ADI) Fundamental Analysis & Valuation

NASDAQ:ADI • US0326541051

315.81 USD
-13.91 (-4.22%)
At close: Mar 6, 2026
315.4 USD
-0.41 (-0.13%)
After Hours: 3/6/2026, 8:00:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This ADI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

ADI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 115 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 growing strongly while it is still valued neutral. This is a good combination! These ratings could make ADI a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

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.
  • Each year in the past 5 years ADI has been profitable.
  • Each year in the past 5 years ADI had a positive operating cash flow.
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 has a Return On Assets of 5.64%. This is in the better half of the industry: ADI outperforms 71.30% of its industry peers.
  • ADI's Return On Equity of 8.01% is fine compared to the rest of the industry. ADI outperforms 66.09% of its industry peers.
  • ADI's Return On Invested Capital of 7.15% is fine compared to the rest of the industry. ADI outperforms 73.04% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ADI is below the industry average of 10.50%.
  • 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 has a Profit Margin of 23.02%. This is amongst the best in the industry. ADI outperforms 82.61% 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 (29.70%) than 88.70% 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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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. ADI Health Analysis

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 less shares outstanding
  • ADI has more shares outstanding than it did 5 years ago.
  • ADI has a worse debt/assets ratio than last year.
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 7.69 indicates that ADI is not in any danger for bankruptcy at the moment.
  • ADI has a better Altman-Z score (7.69) than 66.96% of its industry peers.
  • 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's Debt to FCF ratio of 1.90 is fine compared to the rest of the industry. ADI outperforms 67.83% of its industry peers.
  • A Debt/Equity ratio of 0.23 indicates that ADI is not too dependend on debt financing.
  • ADI has a Debt to Equity ratio (0.23) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.9
Altman-Z 7.69
ROIC/WACC0.64
WACC11.08%
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.
  • ADI's Current ratio of 1.76 is on the low side compared to the rest of the industry. ADI is outperformed by 80.87% of its industry peers.
  • 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.
  • With a Quick ratio value of 1.35, ADI is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
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.
  • The Earnings Per Share has been growing by 9.67% on average over the past years. This is quite good.
  • 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

  • The Earnings Per Share is expected to grow by 16.92% 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 11.54% on average per year.
EPS Next Y28.99%
EPS Next 2Y21.51%
EPS Next 3Y19.73%
EPS Next 5Y16.92%
Revenue Next Year19.88%
Revenue Next 2Y14.42%
Revenue Next 3Y13.33%
Revenue Next 5Y11.54%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past 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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4

4. ADI Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 36.64, ADI can be considered very expensive at the moment.
  • 73.04% of the companies in the same industry are more expensive than ADI, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of ADI to the average of the S&P500 Index (26.29), we can say ADI is valued slightly more expensively.
  • The Price/Forward Earnings ratio is 27.46, which means the current valuation is very expensive for ADI.
  • 68.70% of the companies in the same industry are more expensive than ADI, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.57, ADI is valued at the same level.
Industry RankSector Rank
PE 36.64
Fwd PE 27.46
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

  • 69.57% of the companies in the same industry are more expensive than ADI, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADI indicates a somewhat cheap valuation: ADI is cheaper than 80.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 33.84
EV/EBITDA 30.01
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 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 19.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)3.79
EPS Next 2Y21.51%
EPS Next 3Y19.73%

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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 1.33%, ADI has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.49, ADI pays a better dividend. On top of this ADI pays more dividend than 86.96% of the companies listed in the same industry.
  • ADI's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.33%

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

  • 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 2Y21.51%
EPS Next 3Y19.73%
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 (3/6/2026, 8:00:00 PM)

After market: 315.4 -0.41 (-0.13%)

315.81

-13.91 (-4.22%)

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-1.38%
Ins Owners0.04%
Ins Owner Change-8.8%
Market Cap154.18B
Revenue(TTM)11.76B
Net Income(TTM)2.71B
Analysts80.47
Price Target379.39 (20.13%)
Short Float %1.68%
Short Ratio2.07
Dividend
Industry RankSector Rank
Dividend Yield 1.33%
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)30.73%
PT rev (3m)38.45%
EPS NQ rev (1m)17.35%
EPS NQ rev (3m)26.17%
EPS NY rev (1m)0.25%
EPS NY rev (3m)6.78%
Revenue NQ rev (1m)8.06%
Revenue NQ rev (3m)14.5%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)5.84%
Valuation
Industry RankSector Rank
PE 36.64
Fwd PE 27.46
P/S 13.13
P/FCF 33.84
P/OCF 30.53
P/B 4.57
P/tB N/A
EV/EBITDA 30.01
EPS(TTM)8.62
EY2.73%
EPS(NY)11.5
Fwd EY3.64%
FCF(TTM)9.33
FCFY2.96%
OCF(TTM)10.34
OCFY3.28%
SpS24.06
BVpS69.15
TBVpS-1.61
PEG (NY)1.26
PEG (5Y)3.79
Graham Number115.81
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 7.69
F-Score7
WACC11.08%
ROIC/WACC0.64
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 Y28.99%
EPS Next 2Y21.51%
EPS Next 3Y19.73%
EPS Next 5Y16.92%
Revenue 1Y (TTM)25.91%
Revenue growth 3Y-2.84%
Revenue growth 5Y14.49%
Sales Q2Q%30.42%
Revenue Next Year19.88%
Revenue Next 2Y14.42%
Revenue Next 3Y13.33%
Revenue Next 5Y11.54%
EBIT growth 1Y72.62%
EBIT growth 3Y-6.89%
EBIT growth 5Y13.85%
EBIT Next Year67.31%
EBIT Next 3Y26.02%
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 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 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 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%.