ADI
Analog Devices
$387.93
▲ 2.8%Updated Aug 7, 11:30 AM ET
ADI at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 69/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 89.2% over the last 12 months
Market Cap
$183.71B
P/E
58.23x
Forward P/E (est.)
41.6x
ROE
9.8%
Revenue Growth
29.8%
EPS Growth
83.2%
Profit Margin
26.0%
FCF Yield
2.6%
Debt / Equity
0.25x
ROIC
6.0%
Interest Coverage
11.08x
Current Ratio
1.75x
Dividend Yield
1.0%
Implied Growth (rev. DCF)
6.5%
Rating Score
69/100
Analog Devices (ADI) is a large-cap company in the Semiconductors industry, part of the Information Technology sector of the S&P 500, with a market value around $183.71B.
In its latest reported year it generated about $11.02B in revenue and $2.27B in net profit.
Our model rates ADI Favorable (69/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (9 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
60.9% average over the last 3 years
±3.3 pts around 63.2% across 9 years
grew in 5 of the last 8 year-over-year periods
positive in 9 of 9 years
6.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what ADI's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. ADI trades near $387.93, around its 50-day average ($408.73) and 200-day average ($317.54). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 40 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. ADI's is $19.08 (~4.9% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month ADI found buyers near $372.64 (support) and sellers near $445.91 (resistance); its 52-week range is $218.37–$445.91. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.1× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
10.8%
Revenue moved from $5.25B in 2017 to $11.02B in 2025, a 9.7% compound annual growth rate. The most recent year grew a strong 29.8% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
61.5%
Operating Margin
26.6%
Net Margin
20.6%
ROE
9.8%
Analog Devices keeps about 26.0% of each sales dollar as net profit, with a 61.5% gross margin and 26.6% operating margin. Return on equity is 9.8% and return on invested capital about 6.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$6.52B
Net Debt
$4.08B
Net Debt / EBITDA
1.39x
Debt / Equity
0.25x
Leverage: debt-to-equity is 0.3x, and operating profit covers interest about 11.1x, with a current ratio of 1.8x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $6.52B of total debt against $2.44B of cash.
Operating CF
$4.81B
Free Cash Flow
$4.28B
FCF Margin
38.8%
In the latest year Analog Devices produced about $4.81B of operating cash flow and $4.28B of free cash flow after capital spending. That is a free-cash-flow yield of about 2.6% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
1.0%
Per share (latest FY)
$3.89
Total paid (latest FY)
$1.92B
History on record
9 years
dividend uses 45% of free cash flow
85% of net income paid out
total dividends increased 8 years in a row
no cuts in the last 9 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
58.23x
P/S
18.78x
P/B
3.15x
EV / EBITDA
—
ADI trades at 58.2x trailing earnings (about 41.6x on estimated forward earnings), 18.8x sales, and 3.2x book value. Reverse-engineering today's price implies the market expects roughly 6.5% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$363.76
Current price
$387.93
Starting FCF (latest 10-K)
$4.28B
Growth, years 1–5
20.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where ADI sits versus its Information Technology sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How ADI stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (230 S&P 500 companies), ADI ranks #26 of 230 by our overall rating. It trades at a premium versus the sector on earnings (58.2x P/E vs. 38.9x median) with a lower return on equity (9.8% vs. 17.5%) and faster revenue growth (29.8% vs. 17.7%).
P/E vs sector
58.2x
median 38.9x
ROE vs sector
9.8%
median 17.5%
Growth vs sector
29.8%
median 17.7%
Sector rank
#26
of 230 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 230 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $387.93 today · expected CAGR 10% – 22%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $14.33B | $18.62B | $24.21B | $31.47B | $40.92B |
| Net income | $3.01B | $3.91B | $5.08B | $6.61B | $8.59B |
| EPS | $6.35 | $8.26 | $10.74 | $13.96 | $18.14 |
| Share price (low) | $222.34 | $289.04 | $375.76 | $488.49 | $635.03 |
| Share price (high) | $368.45 | $478.99 | $622.69 | $809.49 | $1,052.34 |
| CAGR (low–high) | -43% / -5% | -14% / 11% | -1% / 17% | 6% / 20% | 10% / 22% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for ADI:
- Revenue is growing 29.8% a year, a sign of real demand.
- High net margins (26.0%) point to pricing power or efficiency.
- A conservative balance sheet (debt/equity 0.3x) lowers risk.
- Our model's overall read is Favorable (69/100).
The case against ADI:
- A rich 58.2x earnings multiple prices in a lot of growth.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Valuation risk — at 58.2x earnings, disappointing results could compress the multiple.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Analog Devices is a large-cap information technology business still growing nicely, with solid profitability, and a sound balance sheet. It trades at 58.2x earnings, which our model scores Favorable (69/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 37 Wall Street analysts covering ADI recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more positive over the last three months (+4 pts of buy ratings).
Latest SEC Filings
ADI's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
ADI — frequently asked questions
Is ADI a good stock to buy?
We don't give buy or sell advice. Our model rates Analog Devices Favorable (69/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is ADI's rating on The Stocks School?
Analog Devices currently scores 69/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does ADI's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Analog Devices's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for ADI calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this ADI analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell ADI. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.