Analog Devices (ADI) AI Stock Analysis

• Market Cap: $119.31B
• Dividend Yield: 1.65%
• Average Volume (3M): 3.13M
• Price to Earnings (P/E): 65.5
• Beta (1Y): 1.52
• Revenue Growth: -6.17%
• EPS Growth: -14.16%
• Country: US
• Employees: 24,000
• Sector: Technology
• Sector Strength: 93
• Industry: Semiconductors
• EPS (TTM): 1.85
• Shares Outstanding: 496,248,200
• 10 Day Avg. Volume: 2,428,039
• 30 Day Avg. Volume: 3,132,351
• PEG Ratio: 0.17
• Price to Book (P/B): 3.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.68
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 3.28
• Enterprise Value/Gross Profit: 22.51
• Enterprise Value/Ebitda: 7.66
• 1Y Price Target: $252.68
• Price Target Upside: 4.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 26

• Rating: 81 Outperform
• Price Target: $278.00 ▲(15.37%Upside)

Analog Devices' overall score is driven by strong financial and technical performance, supported by robust earnings call insights. The primary strengths include profitability, market momentum, and sector recovery, while valuation concerns and tariff-related uncertainties present moderate risks.

Positive Factors

Cyclical Recovery

ADI remains in early stages of a potential multi-year cyclical recovery.

Electric Vehicles

Strong content gains in EVs more than offset even amidst flat SAAR and a weaker 2H for LVP.

Revenue and Growth

Revenue grew 22% y/y to USD2.64bn, led by robust automotive (+24% y/y) and AI-driven sectors.

Negative Factors

Consumer Electronics Demand

Slowdown in consumer electronics demand due to weak consumer sentiment caused by inflation concerns, slower global economic growth, and geopolitical conflicts.

Messaging and Targets

Strange messaging around full-year growth causes some confusion for anticipated targets.

Tariff Concerns

Concerns over valuation and tariff issues keep analysts on the sidelines.

Analog Devices Business Overview & Revenue Model

Company Description

Analog Devices, Inc. designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems that leverage analog, mixed-signal, and digital signal processing technologies. The company provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and high-end consumer markets; and power ICs include performance, integration, and software design simulation tools for accurate power supply designs. It also offers high-performance amplifiers to condition analog signals; and radio frequency and microwave ICs to support cellular infrastructure; and microelectromechanical systems technology solutions, including accelerometers used to sense acceleration, gyroscopes for sense rotation, inertial measurement units to sense multiple degrees of freedom, and broadband switches for radio and instrument systems, as well as isolators. In addition, the company offers digital signal processing and system products for high-speed numeric calculations. It serves clients in the industrial, automotive, consumer, instrumentation, aerospace, and communications markets through a direct sales force, third-party distributors, and independent sales representatives in the United States, the rest of North and South America, Europe, Japan, China, and rest of Asia, as well as through its Website. Analog Devices, Inc. was incorporated in 1965 and is headquartered in Wilmington, Massachusetts.

How the Company Makes Money

Analog Devices generates revenue primarily through the sale of its semiconductor products to a diverse customer base across multiple industries. The company's revenue model is based on the development and sale of high-performance analog and mixed-signal ICs, which are sold directly to original equipment manufacturers (OEMs) and through a network of distributors. Key revenue streams include sales from industrial applications, automotive electronics, communications infrastructure, and consumer electronics. ADI also engages in strategic partnerships and collaborations to enhance its product offerings and expand market reach, which further contributes to its revenue. Additionally, the company invests in research and development to maintain its competitive edge and innovate new solutions, ensuring sustained demand for its products.

Analog Devices Financial Statement Overview

Summary

Analog Devices presents strong financial performance with excellent profitability metrics, stable balance sheet, and robust cash flow position. The company's operational efficiency and controlled leverage underscore its financial health, despite a slight deceleration in growth rates.

Income Statement

Analog Devices demonstrates strong profitability with a consistent gross profit margin around 56-58% and solid net profit margins averaging 18-19% in recent periods, indicating efficient cost management. The revenue growth rate in the TTM is modest at approximately 4%, showing steady expansion. EBIT and EBITDA margins are robust, reflecting operational efficiency. While growth has slightly decelerated compared to previous years, the company's profitability metrics remain strong and stable.

Balance Sheet

The company's balance sheet shows a solid equity base with a debt-to-equity ratio of approximately 0.21, suggesting controlled leverage. Return on equity is healthy, averaging around 5%, and the equity ratio at 74% indicates a strong financial foundation. Although total assets have slightly decreased, the company maintains a robust equity position. The balance sheet reflects stability but could benefit from higher asset turnover.

Cash Flow

Analog Devices exhibits a strong cash flow position with consistent free cash flow generation and a free cash flow to net income ratio exceeding 1, highlighting effective cash conversion. The operating cash flow to net income ratio is strong, underscoring efficient operations. Recent free cash flow growth is modest at 5.5%, indicating sustainable but slower growth. The cash flow metrics portray a healthy liquidity position, supporting ongoing operations and shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.82B	9.43B	12.31B	12.01B	7.32B	5.60B
Gross Profit	5.58B	5.38B	7.88B	7.53B	4.53B	3.69B
EBITDA	3.86B	4.20B	6.15B	5.61B	2.60B	2.32B
Net Income	1.83B	1.64B	3.31B	2.75B	1.39B	1.22B
Balance Sheet
Total Assets	47.34B	48.23B	48.79B	50.30B	52.32B	21.47B
Cash, Cash Equivalents and Short-Term Investments	2.38B	2.36B	958.06M	1.47B	1.98B	1.06B
Total Debt	7.20B	7.65B	7.01B	6.55B	6.77B	5.15B
Total Liabilities	12.33B	13.05B	13.23B	13.84B	14.33B	9.47B
Stockholders Equity	35.01B	35.18B	35.57B	36.47B	37.99B	12.00B
Cash Flow
Free Cash Flow	3.29B	3.12B	3.56B	3.78B	2.39B	1.84B
Operating Cash Flow	3.85B	3.85B	4.82B	4.48B	2.74B	2.01B
Investing Cash Flow	-149.79M	-1.10B	-1.27B	-657.37M	2.14B	-180.52M
Financing Cash Flow	-3.27B	-1.71B	-4.06B	-4.29B	-3.96B	-1.42B

Analog Devices Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 240.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADI, the sentiment is Positive. The current price of 240.97 is above the 20-day moving average (MA) of 239.37, above the 50-day MA of 227.26, and above the 200-day MA of 215.46, indicating a bullish trend. The MACD of 4.82 indicates Positive momentum. The RSI at 58.71 is Neutral, neither overbought nor oversold. The STOCH value of 28.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADI.

Analog Devices Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADI	81 Outperform	$119.31B	65.45	5.21%	1.65%	-6.17%	-14.16%
AMD	80 Outperform	$259.55B	117.59	3.90%	―	21.71%	99.00%
TXN	77 Outperform	$196.81B	41.04	29.04%	2.51%	-4.48%	-17.82%
QCOM	76 Outperform	$169.42B	15.71	42.21%	2.31%	16.15%	32.28%
NXPI	75 Outperform	$55.72B	24.21	26.02%	1.84%	-7.21%	-15.29%
MRVL	70 Outperform	$61.09B	―	-3.54%	0.34%	21.60%	50.00%
Sector *	63 Neutral	$34.26B	5.42	-11.67%	1.85%	5.30%	-18.55%

Analog Devices Corporate Events

Analog Devices Board Member Laurie Glimcher Retires

On May 21, 2025, Dr. Laurie Glimcher retired from the Board of Directors of Analog Devices, Inc., a decision that did not stem from any disagreements with the company’s operations or policies. Following her retirement, the Board reduced its size to ten members, potentially impacting the company’s governance structure.

The most recent analyst rating on (ADI) stock is a Buy with a $225.00 price target. To see the full list of analyst forecasts on Analog Devices stock, see the ADI Stock Forecast page.