Analog Devices (ADI) AI Stock Analysis

• Market Cap: $117.09B
• Dividend Yield: 1.6%
• Average Volume (3M): 3.17M
• Price to Earnings (P/E): 60.5
• Beta (1Y): 1.51
• 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: 3,270,513
• 30 Day Avg. Volume: 3,173,947
• 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: 0.99
• Enterprise Value/Revenue: 14.52
• Enterprise Value/Gross Profit: 23.87
• Enterprise Value/Ebitda: 32.42
• 1Y Price Target: $275.28
• Price Target Upside: 13.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 75 Outperform
• Price Target: $273.00 ▲(12.34% Upside)

Analog Devices' strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. The company's robust revenue growth and profitability, particularly in industrial and communications sectors, are significant strengths. However, the high P/E ratio suggests potential overvaluation, and technical indicators show neutral to slightly negative momentum, which tempers the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand across sectors, enhancing market position and supporting long-term expansion.

Industrial Sector Performance

Growth in industrial sectors like aerospace and automation suggests resilience and potential for sustained revenue streams.

Cash Flow Management

Strong cash flow management supports strategic investments and shareholder returns, bolstering financial stability.

Negative Factors

Automotive Revenue Challenges

Pull-ins in automotive revenue may lead to volatility and impact future growth, necessitating careful market navigation.

Utilization Challenges

Lower utilization impacting margins could pressure profitability, requiring operational adjustments to maintain efficiency.

Supply Limitations

Supply constraints in key sectors may hinder growth opportunities, necessitating strategic supply chain management.

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 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 2020	Dec 2018	Dec 2017
Income Statement
Total Revenue	7.94B	9.43B	12.31B	5.60B	6.20B	5.11B
Gross Profit	4.83B	5.38B	7.88B	3.69B	4.23B	3.06B
EBITDA	3.56B	4.20B	6.17B	2.32B	2.71B	1.67B
Net Income	1.48B	1.64B	3.31B	1.22B	1.50B	727.26M
Balance Sheet
Total Assets	48.19B	48.23B	48.79B	21.47B	20.45B	21.14B
Cash, Cash Equivalents and Short-Term Investments	3.47B	2.36B	958.06M	1.06B	816.59M	1.05B
Total Debt	8.69B	8.01B	7.01B	5.19B	6.33B	7.85B
Total Liabilities	14.11B	13.05B	13.23B	9.47B	9.46B	10.98B
Stockholders Equity	34.09B	35.18B	35.57B	12.00B	10.99B	10.16B
Cash Flow
Free Cash Flow	2.79B	3.12B	3.56B	1.84B	2.19B	908.49M
Operating Cash Flow	3.11B	3.85B	4.82B	2.01B	2.44B	1.11B
Investing Cash Flow	-1.10B	-1.10B	-1.27B	-180.52M	-314.00M	-6.62B
Financing Cash Flow	-1.69B	-1.71B	-4.06B	-1.42B	-2.36B	5.63B

Analog Devices Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 243.01
• 50DMA: Negative
• 100DMA: Positive
• 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 Positive. The current price of 243.01 is above the 20-day moving average (MA) of 239.80, below the 50-day MA of 243.99, and above the 200-day MA of 222.34, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 51.84 is Neutral, neither overbought nor oversold. The STOCH value of 59.27 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
QCOM	―	$182.29B	16.29	44.62%	1.85%	15.82%	34.20%
AMAT	―	$182.23B	27.27	35.64%	0.74%	6.70%	-5.95%
ADI	―	$117.09B	60.55	5.65%	1.60%	7.08%	18.39%
MRVL	―	$72.53B	―	-0.75%	0.27%	37.05%	89.40%
TXN	―	$153.68B	30.86	29.60%	3.21%	9.90%	1.65%
NXPI	―	$55.25B	25.90	23.11%	1.83%	-7.53%	-21.88%
Sector *	―	$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.