ADI Analog Devices, Inc. - Fundamental Analysis
BEARISH
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ADI Stock | Fundamental Analysis & Investment Insights
NASDAQ
Technology
Semiconductors
Current Price
Live
$337.1
Analyst Target
$317.69
-5.8%
Downside
52W High
$343.96
52W Low
$158.65
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Feb 14, 2026
Market cap
$165.06B
P/E
72.49
ROE
6.6%
Profit margin
20.6%
Debt/Equity
0.27
Dividend yield
1.2%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
85%
Analysis Accuracy
Analog Devices, Inc. (ADI) exhibits mixed fundamentals despite strong profitability and growth metrics. The Piotroski F-Score of 4/9 indicates weak financial health, signaling potential distress in operational efficiency and capital structure. While the company trades at a premium valuation with a forward P/E of 29.33 and a current price of $337.10, its intrinsic value estimate of $137.18 suggests significant overvaluation. The Graham Number of $85.0 further underscores that the stock is trading at a substantial premium, likely driven by high growth expectations. Insider selling activity over the past six months, totaling $20.94M, adds bearish sentiment despite a 'buy' recommendation from analysts.
Key Strengths
Strong gross margin of 61.47% and operating margin of 30.50% indicate excellent pricing power and cost control
Robust revenue and earnings growth of 25.90% and 66.10% YoY, respectively, reflecting strong market demand
Consistent earnings beat history with an average surprise of 5.28% over the last four quarters
Healthy debt-to-equity ratio of 0.27 and strong current ratio of 2.19 suggest solid financial stability
High forward P/E of 29.33 is justified by strong growth, placing it favorably relative to peers like QCOM and TXN
Key Risks
Piotroski F-Score of 4/9 indicates weak financial health, raising concerns about operational efficiency and capital management
Insider selling activity (11 transactions, $20.94M) over the last six months signals potential lack of confidence from leadership
Dividend payout ratio of 85.31% is unsustainable in the long term, especially with high growth expectations
Current price of $337.10 is nearly 2.5x the Graham Number ($85.0) and 2.5x the intrinsic value ($137.18), indicating severe overvaluation
Technical trend score of 10/100 reflects strong bearish momentum, with price near 52-week high and no clear upward momentum
AI Fair Value Estimate
Based on comprehensive analysis
$137.18
-59.3% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
51
Moderate
35
85
75
40
20
AI Verdict
neutral
Key drivers: Strong growth and margins offset by overvaluation and weak financial health, High insider selling and elevated payout ratio reduce confidence, Analyst buy rating contradicts technical and fundamental red flags
Confidence
80%
Value
35/100
Ref P/E, PEG, Graham Number
Positives
- Forward P/E of 29.33 is below sector average of 80.53, suggesting relative value on growth
- Growth-adjusted valuation may be justified if growth persists
Watchpoints
- Current price is 2.5x the Graham Number ($85.0) and 2.5x the intrinsic value ($137.18)
- No PEG ratio available, but high forward P/E with high growth implies premium pricing
Future
85/100
Ref Growth rates
Positives
- 25.90% YoY revenue growth and 66.10% earnings growth indicate strong momentum
- Q/Q earnings growth of 64.80% shows acceleration in profitability
Watchpoints
- Sustained high growth may be difficult to maintain given current valuation
- High payout ratio limits reinvestment capacity for future growth
Past
75/100
Ref Historical trends
Positives
- 25 consecutive quarters of earnings beat or near-beat, with average surprise of 5.28%
- Consistent EPS progression with multiple quarters exceeding estimates by >5%
Watchpoints
- Recent quarter (2026-02-18) has no actual data, creating a gap in trend continuity
- Historical ROE of 6.57% is low for a high-growth tech firm
Health
40/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Debt/Equity of 0.27 and current ratio of 2.19 indicate strong liquidity and low leverage
- No Altman Z-Score available, but no distress signals in balance sheet
Watchpoints
- Piotroski F-Score of 4/9 is below threshold for financial health (4-6 stable, <4 weak)
- Low ROE (6.57%) and ROA (3.89%) suggest inefficient use of capital
Dividend
20/100
Ref Yield, Payout
Positives
- Dividend yield of 1.20% is modest but consistent with growth stock profile
- Dividend rate of $3.96 is stable and supported by earnings
Watchpoints
- Payout ratio of 85.31% is extremely high and unsustainable long-term
- High payout ratio reduces retained earnings for reinvestment and growth
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$337.1
Analyst Target
$317.69
Upside/Downside
-5.8%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ADI and closest competitors.
Updated 2026-02-13
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ADI
Analog Devices, Inc.
Primary
|
+129.2% | +94.5% | +63.7% | +46.6% | +13.1% | +5.2% |
|
ANET
Arista Networks, Inc.
Peer
|
+609.0% | +347.9% | +5.6% | +19.3% | +4.3% | +5.0% |
|
QCOM
QUALCOMM Incorporated
Peer
|
+8.4% | +41.9% | +1.0% | +4.1% | -7.5% | -10.3% |
|
TXN
Texas Instruments Incorporated
Peer
|
+26.8% | +19.6% | +5.6% | -10.1% | +9.8% | +0.7% |
|
ACN
Accenture plc
Peer
|
+19.4% | +6.6% | -21.9% | -0.7% | +4.1% | -1.8% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
72.49
Forward P/E
29.33
PEG Ratio
N/A
P/B Ratio
4.88
P/S Ratio
14.98
EV/Revenue
15.46
EV/EBITDA
34.11
Market Cap
$165.06B
Profitability
Profit margins and return metrics
Profit Margin
20.57%
Operating Margin
30.5%
Gross Margin
61.47%
ROE
6.57%
ROA
3.89%
Growth
Revenue and earnings growth rates
Revenue Growth
+25.9%
Earnings Growth
+66.1%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+64.8%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.27
Low debt
Current Ratio
2.19
Strong
Quick Ratio
1.57
Excellent
Cash/Share
$7.46
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-18
$N/A
2025-11-25
$2.26
+1.1% surprise
2025-08-20
$2.05
+5.3% surprise
2025-05-22
$1.85
+9.4% surprise
Technology Sector Comparison
Comparing ADI against 149 companies in the Technology sector
(11 bullish, 68 neutral, 70 bearish)
P/E Ratio
72.49
This Stock
vs
80.48
Sector Avg
-9.9%
(Discount)
Return on Equity (ROE)
6.57%
This Stock
vs
-6.46%
Sector Avg
-201.7%
(Below Avg)
Profit Margin
20.57%
This Stock
vs
-9.27%
Sector Avg
-322.1%
(Weaker)
Debt to Equity
0.27
This Stock
vs
0.7
Sector Avg
-62.0%
(Less Debt)
Revenue Growth
25.9%
This Stock
vs
61.63%
Sector Avg
-58.0%
(Slower)
Current Ratio
2.19
This Stock
vs
3.39
Sector Avg
-35.5%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
ADI
Analog Devices, Inc.
|
BEARISH | $165.06B | 72.49 | 6.6% | 20.6% | $337.1 | |
|
ANET
Arista Networks, Inc.
|
NEUTRAL | $171.69B | 52.64 | 31.7% | 39.7% | $136.34 | |
|
QCOM
QUALCOMM Incorporated
|
NEUTRAL | $172.01B | 31.88 | 23.3% | 12.5% | $159.42 | |
|
TXN
Texas Instruments Incorporated
|
NEUTRAL | $174.17B | 34.96 | 29.8% | 29.2% | $191.58 | |
|
ACN
Accenture plc
|
NEUTRAL | $174.3B | 23.58 | 25.0% | 10.8% | $281.07 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-02-05 | STATA RAYMOND S | Director | Sale | 6,250 | $1,996,201 |
| 2026-02-02 | ROCHE VINCENT T | Chief Executive Officer | Sale | 10,000 | $3,069,200 |
| 2026-02-02 | ROCHE VINCENT T | Chief Executive Officer | Option Exercise | 10,000 | $944,100 |
| 2026-01-14 | STATA RAYMOND S | Director | Sale | 6,250 | $1,852,754 |
| 2026-01-09 | NAKAMURA KATSUFUMI | Officer | Sale | 500 | $150,732 |
| 2026-01-07 | NAKAMURA KATSUFUMI | Officer | Sale | 500 | $144,582 |
| 2026-01-05 | COTTER MARTIN | Officer | Sale | 10,000 | $2,784,450 |
| 2026-01-02 | ROCHE VINCENT T | Chief Executive Officer | Sale | 10,000 | $2,750,700 |
| 2026-01-02 | ROCHE VINCENT T | Chief Executive Officer | Option Exercise | 10,000 | $944,100 |
| 2025-12-17 | COTTER MARTIN | Officer | Sale | 5,000 | $1,355,950 |
| 2025-12-17 | STATA RAYMOND S | Director | Sale | 6,250 | $1,727,804 |
| 2025-12-12 | ROCHE VINCENT T | Chief Executive Officer | Sale | 10,000 | $2,824,200 |
| 2025-12-12 | ROCHE VINCENT T | Chief Executive Officer | Option Exercise | 10,000 | $944,100 |
| 2025-12-10 | SONDEL MICHAEL | Officer | Sale | 8,169 | $2,283,235 |
| 2025-12-10 | SONDEL MICHAEL | Officer | Option Exercise | 8,169 | $795,021 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
32 analysts
Barclays
2026-02-13
Equal-Weight
Overweight
Susquehanna
2026-01-22
Positive
Positive
B of A Securities
2026-01-21
Buy
Buy
Stifel
2026-01-16
Buy
Buy
Oppenheimer
2026-01-16
Outperform
Outperform
Citigroup
2026-01-15
Buy
Buy
Wells Fargo
2026-01-15
Equal-Weight
Overweight
Keybanc
2026-01-13
Overweight
Overweight
Truist Securities
2025-12-19
Hold
Hold
UBS
2025-12-08
Buy
Buy
Past News Coverage
Recent headlines mentioning ADI from our newsroom.
Newest → oldest
No matching news yet.