ADI Analog Devices, Inc. - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
ADI’s valuation appears stretched on trailing metrics but becomes attractive on a forward basis, especially when compared to unprofitable high-flyers like SNOW and CRWD, while still trading at a discount to the sector’s sky-high average P/E
- Forward P/E of 31.15 is reasonable given 24.6% revenue growth and sector average P/E of 160.55
- Price/Sales of 11.25 is high but justified by superior margins and profitability
- Trailing P/E of 59.92 is elevated and sensitive to growth deceleration
- Price/Book of 3.39 lacks support from strong ROE, which is only 5.65%
ADI’s growth trajectory remains strong with accelerating earnings and positive price momentum over 5Y (+85.9%) and 3Y (+50.0%), though 1Y and 6M returns lag high-growth peers like SNOW and CRWD, suggesting room to run if execution continues
- 24.6% YoY revenue growth and 31.6% earnings growth indicate strong demand and execution
- Q/Q EPS growth of 10.8% shows sustained momentum into recent periods
- Lack of Q/Q revenue growth data limits visibility into near-term inflection
- Macro sensitivity in industrial and automotive end markets could pressure future guidance
ADI has delivered exceptional earnings consistency over five years, with only two misses in 25 quarters, and strong long-term price appreciation (+85.9% over 5Y), though margin expansion has not translated into strong returns on equity
- 22 of 25 quarters beat EPS estimates, demonstrating reliable execution and conservative guidance
- Gross margin has remained above 60% consistently, reflecting durable competitive advantages
- ROE has averaged below 6%, indicating persistent capital inefficiency despite profitability
- Recent quarters show slight deceleration in beat magnitude, from double-digit surprises in 2024 to mid-single digits in 2025
ADI’s leverage is minimal and liquidity strong compared to peers like TXN (debt/equity 0.84) and SNOW (1.13), but lack of cash flow transparency introduces uncertainty despite apparent financial stability
- Debt/equity ratio of 0.26 is conservative and well below sector average of 0.79
- Current ratio of 2.32 and quick ratio of 1.69 indicate strong short-term liquidity
- Missing total cash and debt figures limit full assessment of balance sheet strength
- No free cash flow data prevents evaluation of cash conversion and capital return capacity
The dividend offers modest yield but is at risk due to the 97.2% payout ratio, which is unsustainable long-term without earnings growth; this contrasts with peers like TXN, which maintain lower payouts with higher coverage
- 1.69% dividend yield provides modest income appeal in a growth sector
- Dividend has been maintained consistently, reflecting capital return discipline
- 97.20% payout ratio is dangerously high and leaves little room for shocks
- No dividend growth visibility provided, and high payout limits reinvestment flexibility
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ADI and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ADI
Analog Devices, Inc.
Primary
|
+85.9% | +50.0% | +12.6% | +4.3% | -1.4% | +2.8% |
|
ADP
Automatic Data Processing, Inc.
Peer
|
+58.4% | +6.6% | -14.4% | -19.9% | -10.9% | -0.4% |
|
CRWD
CrowdStrike Holdings, Inc.
Peer
|
+308.5% | +262.5% | +56.1% | +22.4% | +9.9% | -0.4% |
|
SNOW
Snowflake Inc.
Peer
|
+6.3% | +57.2% | +98.8% | +40.4% | +6.7% | -2.2% |
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
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Technology Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
ADI
Analog Devices, Inc.
|
BULLISH | $116.85B | 59.92 | 5.7% | 18.8% | $234.89 | |
|
ADP
Automatic Data Processing, Inc.
|
NEUTRAL | $102.98B | 25.01 | 70.6% | 19.8% | $253.09 | |
|
CRWD
CrowdStrike Holdings, Inc.
|
NEUTRAL | $134.9B | - | -8.9% | -6.8% | $537.55 | |
|
ADBE
Adobe Inc.
|
NEUTRAL | $141.09B | 21.01 | 52.9% | 30.0% | $337.05 | |
|
SNOW
Snowflake Inc.
|
NEUTRAL | $87.08B | - | -42.4% | -33.5% | $257.02 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-05 | STATA RAYMOND S | Director | Sale | 6,250 | $1,455,357 |
| 2025-11-03 | ROCHE VINCENT T | Chief Executive Officer | Sale | 10,000 | $2,349,500 |
| 2025-11-03 | ROCHE VINCENT T | Chief Executive Officer | Option Exercise | 10,000 | $944,100 |
| 2025-10-07 | ROCHE VINCENT T | Chief Executive Officer | Gift | 11,306 | - |
| 2025-10-06 | FRANK EDWARD H. PH.D. | Director | Sale | 1,000 | $242,740 |
| 2025-10-02 | STATA RAYMOND S | Director | Sale | 6,250 | $1,510,268 |
| 2025-10-01 | ROCHE VINCENT T | Chief Executive Officer | Sale | 10,000 | $2,437,100 |
| 2025-10-01 | ROCHE VINCENT T | Chief Executive Officer | Option Exercise | 10,000 | $944,100 |
| 2025-09-18 | STATA RAYMOND S | Director | Sale | 6,250 | $1,551,663 |
| 2025-09-05 | COTTER MARTIN | Officer | Sale | 12,500 | $3,078,092 |
| 2025-09-02 | ROCHE VINCENT T | Chief Executive Officer | Sale | 10,000 | $2,465,000 |
| 2025-09-02 | ROCHE VINCENT T | Chief Executive Officer | Option Exercise | 10,000 | $944,100 |
| 2025-08-27 | ROCHE VINCENT T | Chief Executive Officer | Sale | 20,000 | $5,085,818 |
| 2025-08-21 | NAKAMURA KATSUFUMI | Officer | Sale | 2,490 | $617,595 |
| 2025-08-21 | NAKAMURA KATSUFUMI | Officer | Option Exercise | 2,490 | $226,914 |
Wall Street Analysts
Professional analyst ratings and price targets