ADI Analog Devices, Inc. - Fundamental Analysis
BEARISH
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ADI Stock | Fundamental Analysis & Investment Insights
NASDAQ
Technology
Semiconductors
Current Price
Live
$355.03
Analyst Target
$379.64
+6.9%
Upside
52W High
$355.45
52W Low
$158.65
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
85%
Analysis Accuracy
ADI's Piotroski F-Score of 4/9 indicates weak financial health, signaling potential instability despite strong profitability and growth. The stock trades at a premium valuation with a P/E of 78.20 and forward P/E of 27.92, significantly above sector averages, suggesting overvaluation relative to current earnings. Insider selling activity totaling $20.94M over six months reflects bearish sentiment from key executives. While earnings and revenue growth are impressive, the high payout ratio of 85.31% and lack of dividend growth raise sustainability concerns. The Graham Number ($84.08) and intrinsic value ($133.93) are far below the current price of $355.03, indicating substantial overvaluation.
Key Strengths
Strong gross margin of 62.84% and operating margin of 33.07% reflect excellent pricing power and cost control
Exceptional year-over-year earnings growth of 116.70% and Q/Q EPS growth of 10.2% demonstrate robust profitability momentum
Low debt/equity ratio of 0.26 and healthy current ratio of 1.76 indicate strong financial stability
Consistent earnings beat rate of 75% over the last four quarters with an average surprise of 7.32%
High market cap ($173.84B) and strong sector leadership in semiconductors provide scale and resilience
Key Risks
Piotroski F-Score of 4/9 signals weak financial health, indicating potential red flags in operational efficiency or capital structure
Current price of $355.03 is over 2.6x the Graham Number ($84.08) and 2.7x the intrinsic value ($133.93), suggesting severe overvaluation
Insider selling of 17,250 shares worth $20.94M in six months reflects bearish sentiment from executives and directors
Dividend payout ratio of 85.31% is unsustainable in the long term, especially with high growth expectations
Forward P/E of 27.92 is misleadingly low due to extraordinary one-time earnings growth; underlying valuation remains stretched
AI Fair Value Estimate
Based on comprehensive analysis
$133.93
-62.3% below current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare ADI against industry averages and similar companies
Insider Trading & Analyst Ratings
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Past News Coverage
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