Analog Devices (ADI) AI Stock Analysis

• Market Cap: $115.56B
• Dividend Yield: 1.66%
• Average Volume (3M): 3.43M
• Price to Earnings (P/E): 59.8
• Beta (1Y): 1.55
• Revenue Growth: 7.08%
• EPS Growth: 18.39%
• Country: US
• Employees: 24,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 2.06
• Shares Outstanding: 491,955,440
• 10 Day Avg. Volume: 3,622,500
• 30 Day Avg. Volume: 3,427,226
• PEG Ratio: -1.37
• Price to Book (P/B): 3.18
• Price to Sales (P/S): 11.87
• P/FCF Ratio: 35.83
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 11.11
• Enterprise Value/Gross Profit: 18.46
• Enterprise Value/Ebitda: 24.66
• 1Y Price Target: $276.58
• Price Target Upside: 17.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $273.00 ▲(16.22% Upside)

Analog Devices demonstrates strong financial performance and positive earnings call highlights, particularly in revenue growth across key sectors. However, technical indicators suggest a lack of strong upward momentum, and the high P/E ratio indicates potential overvaluation. The company's robust financial health and positive outlook are tempered by valuation concerns and technical analysis signals.

Positive Factors

Revenue Growth

Strong revenue growth across key sectors indicates robust demand and effective market positioning, supporting long-term business expansion.

Industrial Sector Performance

Significant growth in the industrial sector underscores ADI's strength in diversified applications, enhancing resilience against sector-specific downturns.

Cash Flow Management

Strong cash flow generation supports financial flexibility, enabling strategic investments and shareholder returns, which are crucial for sustainable growth.

Negative Factors

Automotive Revenue Challenges

Pull-ins in automotive revenue, especially in China, could lead to volatility in future earnings, impacting long-term growth in this segment.

Utilization Challenges

Lower utilization rates can pressure margins, indicating potential inefficiencies that may need addressing to maintain profitability.

Supply Limitations

Supply constraints in high-demand sectors like aerospace and defense may limit revenue potential, requiring strategic supply chain adjustments.

Analog Devices Business Overview & Revenue Model

Company Description

Analog Devices, Inc. (ADI) is a leading global semiconductor company specializing in analog, mixed-signal, and digital signal processing (DSP) technologies. Founded in 1965 and headquartered in Norwood, Massachusetts, ADI serves a wide range of sectors including industrial automation, automotive, communications, consumer electronics, and healthcare. The company develops high-performance signal processing solutions, precision analog components, and integrated circuits that enable the conversion, conditioning, and processing of real-world signals, making technology smarter and more efficient.

How the Company Makes Money

Analog Devices generates revenue primarily through the sale of its semiconductor products, which include amplifiers, data converters, microcontrollers, and DSPs. The company operates a diversified revenue model that encompasses multiple sectors, with industrial applications contributing significantly to its earnings, followed by automotive and communications sectors. Key revenue streams are driven by direct sales to original equipment manufacturers (OEMs) and distributors, as well as long-term partnerships with major technology firms. ADI also invests in research and development to innovate its product offerings, which enhances its competitive edge and drives sales in emerging markets. Additionally, the company benefits from economies of scale in manufacturing and strategic acquisitions that expand its product portfolio and market reach.

Analog Devices Financial Statement Overview

Summary

Analog Devices presents a strong financial position with solid profitability, efficient cash flow management, and prudent leverage. The company has shown resilience in revenue growth and profitability, although recent trends suggest a need for vigilance in maintaining growth momentum. The balance sheet remains stable, supporting long-term financial health.

Income Statement

Analog Devices shows strong profitability with a consistent increase in gross profit and net profit margins over the years. The TTM data indicates a healthy revenue growth rate of 5.79%, demonstrating resilience in the semiconductor industry. The EBIT and EBITDA margins are robust, reflecting efficient operational management. However, the revenue growth has slowed compared to previous years, which could be a concern if the trend continues.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.25 in the TTM, indicating prudent financial leverage. The return on equity has improved to 5.62% in the TTM, showing better utilization of equity. However, the equity ratio has decreased slightly over the years, suggesting a need for careful monitoring of asset management.

Cash Flow

Analog Devices has demonstrated strong cash flow management with a significant free cash flow growth rate of 11.68% in the TTM. The operating cash flow to net income ratio is healthy at 1.40, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is also robust at 0.88, reflecting good cash conversion. However, fluctuations in free cash flow growth in previous years suggest potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.39B	9.43B	12.31B	12.01B	7.32B	5.60B
Gross Profit	6.25B	5.38B	7.88B	7.80B	4.86B	3.69B
EBITDA	4.68B	4.20B	6.17B	5.60B	2.59B	2.32B
Net Income	1.96B	1.64B	3.31B	2.75B	1.39B	1.22B
Balance Sheet
Total Assets	48.19B	48.23B	48.79B	50.30B	52.32B	21.47B
Cash, Cash Equivalents and Short-Term Investments	3.47B	2.36B	958.06M	1.47B	1.98B	1.06B
Total Debt	8.69B	7.65B	7.01B	6.60B	6.82B	5.19B
Total Liabilities	14.11B	13.05B	13.23B	13.84B	14.33B	9.47B
Stockholders Equity	34.09B	35.18B	35.57B	36.47B	37.99B	12.00B
Cash Flow
Free Cash Flow	3.68B	3.12B	3.56B	3.78B	2.39B	1.84B
Operating Cash Flow	4.16B	3.85B	4.82B	4.48B	2.74B	2.01B
Investing Cash Flow	-1.21B	-1.10B	-1.27B	-657.37M	2.14B	-180.52M
Financing Cash Flow	-2.74B	-1.71B	-4.06B	-4.29B	-3.96B	-1.42B

Analog Devices Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 234.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADI, the sentiment is Negative. The current price of 234.89 is below the 20-day moving average (MA) of 236.91, below the 50-day MA of 240.54, and above the 200-day MA of 223.79, indicating a neutral trend. The MACD of -1.39 indicates Negative momentum. The RSI at 47.81 is Neutral, neither overbought nor oversold. The STOCH value of 78.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADI.

Analog Devices Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QCOM	80 Outperform	$186.33B	34.70	23.34%	2.00%	13.66%	-45.40%
ADI	75 Outperform	$115.56B	59.76	5.65%	1.66%	7.08%	18.39%
AMAT	75 Outperform	$180.05B	26.10	35.51%	0.75%	4.47%	0.48%
TXN	68 Neutral	$144.77B	29.07	29.60%	3.45%	9.90%	1.65%
MRVL	67 Neutral	$74.53B	―	-0.75%	0.29%	37.05%	89.40%
NXPI	65 Neutral	$49.61B	24.21	21.19%	2.06%	-6.81%	-23.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Analog Devices Corporate Events

Analog Devices Engages Investors with Strategic Presentation

On September 19, 2025, Analog Devices, Inc. plans to engage with investors through a presentation as part of its shareholder engagement program. The presentation will cover various forward-looking statements, including the company’s strategy, environmental goals, and financial performance. The company emphasizes its commitment to sustainability and innovation, with significant investments in R&D and a diverse product portfolio. The announcement highlights the company’s strong financial profile, with a market cap of $110.7 billion and annual revenue of $9.4 billion in 2024. Additionally, Analog Devices is focused on aligning executive compensation with shareholder interests and maintaining a diverse and independent board to ensure effective governance.

The most recent analyst rating on (ADI) stock is a Buy with a $290.00 price target. To see the full list of analyst forecasts on Analog Devices stock, see the ADI Stock Forecast page.

Analog Devices Reports Strong Earnings with Positive Outlook

Analog Devices, Inc. recently held its earnings call, revealing a generally positive sentiment despite some challenges. The company reported strong revenue growth across its major sectors, particularly in industrial and communications. However, issues such as automotive pull-ins and utilization impacted margins. Nevertheless, the outlook remains optimistic, with expectations of strong growth in the industrial sector and a record year for automotive.

Analog Devices Posts Strong Q2 2025 Results

Analog Devices, Inc. (ADI) is a global leader in the semiconductor industry, known for its innovative solutions that bridge the physical and digital worlds, particularly at the Intelligent Edge. The company plays a crucial role in advancing technologies across various sectors, including industrial, automotive, consumer, and communications.