Analog Devices (ADI) AI Stock Analysis

• Market Cap: $119.30B
• Dividend Yield: 1.66%
• Average Volume (3M): 2.90M
• Price to Earnings (P/E): 61.6
• Beta (1Y): 1.48
• 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: 2,740,508
• 30 Day Avg. Volume: 2,900,128
• 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: 0.97
• Enterprise Value/Revenue: 11.11
• Enterprise Value/Gross Profit: 18.46
• Enterprise Value/Ebitda: 24.66
• 1Y Price Target: $276.05
• Price Target Upside: 18.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22

• Rating: 69 Neutral
• Price Target: $256.00 ▲(9.52% Upside)

Analog Devices' strong financial performance and positive earnings call outlook are significant strengths, driving the overall score. However, bearish technical indicators and a high P/E ratio suggest caution. The company's ability to sustain growth amidst macroeconomic uncertainties will be crucial.

Positive Factors

Revenue Growth

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

Cash Flow Management

Efficient cash flow management ensures financial flexibility and the ability to invest in growth opportunities, enhancing long-term resilience.

Industrial Sector Growth

Growth in the industrial sector, a significant revenue contributor, underscores ADI's strong positioning in a crucial market, supporting sustained performance.

Negative Factors

Automotive Revenue Challenges

Automotive revenue pull-ins could lead to volatility in future earnings, impacting long-term growth stability in this key sector.

Utilization Challenges

Lower utilization rates can pressure margins, potentially affecting profitability if not addressed, posing a risk to operational efficiency.

Supply Limitations

Supply constraints in high-demand sectors may limit growth potential and market share expansion, impacting long-term strategic goals.

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, 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 demonstrates strong financial performance with robust profitability, efficient cash flow management, and prudent leverage. The company shows resilience in revenue growth and profitability, although recent trends suggest a need for vigilance in maintaining growth momentum.

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	8.01B	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: 233.75
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 233.75 is below the 20-day moving average (MA) of 244.89, below the 50-day MA of 240.33, and above the 200-day MA of 220.41, indicating a neutral trend. The MACD of -0.95 indicates Positive momentum. The RSI at 34.68 is Neutral, neither overbought nor oversold. The STOCH value of 30.46 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	79 Outperform	$181.94B	16.32	44.62%	2.06%	15.82%	34.20%
AMAT	76 Outperform	$178.38B	25.94	35.64%	0.81%	6.70%	-5.95%
NXPI	76 Outperform	$58.34B	27.05	23.11%	1.85%	-7.53%	-21.88%
TXN	75 Outperform	$165.29B	32.96	29.84%	3.07%	3.62%	-5.27%
ADI	69 Neutral	$119.30B	61.56	5.65%	1.66%	7.08%	18.39%
MRVL	69 Neutral	$76.66B	―	-0.75%	0.28%	37.05%	89.40%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.