Analog Devices (ADI) AI Stock Analysis

• Market Cap: $137.73B
• Dividend Yield: 1.38%
• Average Volume (3M): 3.94M
• Price to Earnings (P/E): 61.6
• Beta (1Y): 1.60
• Revenue Growth: 16.89%
• EPS Growth: 39.29%
• Country: US
• Employees: 24,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 2.26
• Shares Outstanding: 489,654,080
• 10 Day Avg. Volume: 4,746,947
• 30 Day Avg. Volume: 3,935,436
• PEG Ratio: 1.31
• Price to Book (P/B): 3.42
• Price to Sales (P/S): 10.50
• P/FCF Ratio: 27.05
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 10.96
• Enterprise Value/Gross Profit: 18.34
• Enterprise Value/Ebitda: 24.02
• 1Y Price Target: $283.55
• Price Target Upside: 0.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 23
• EPS Forecast (FY): 9.89
• Revenue Forecast (FY): $13.00B

• Rating: 77 Outperform
• Price Target: $319.00 ▲(13.41% Upside)

Analog Devices' strong financial performance and positive earnings call are the most significant factors driving the stock score. The technical analysis supports a bullish trend, although the high valuation suggests caution. Macroeconomic and geopolitical challenges present risks, but the company's robust growth and shareholder returns are compelling positives.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective product adoption, supporting long-term business sustainability.

Cash Generation

Robust cash generation enhances financial flexibility, enabling strategic investments and shareholder returns, strengthening long-term prospects.

Market Diversification

Diversified market growth reduces dependency on single sectors, mitigating risks and ensuring stable revenue streams across economic cycles.

Negative Factors

Macroeconomic Challenges

Ongoing macroeconomic challenges can disrupt supply chains and market demand, posing risks to revenue stability and growth.

Automotive Sector Outlook

Sub-seasonal performance expectations in automotive could limit growth in a key sector, affecting overall revenue and profitability.

Wireless Revenue Stagnation

Stagnant wireless revenue suggests challenges in this segment, potentially hindering growth if not addressed through innovation or market expansion.

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 are critical components in electronic devices. The company's revenue model is based on the production and sale of high-performance analog, mixed-signal, and digital signal processing integrated circuits. Key revenue streams include sales to industries such as automotive, where ADI provides solutions for advanced driver-assistance systems (ADAS), and industrial markets, where its products are used in automation and control systems. Additionally, ADI benefits from partnerships with major technology companies and OEMs (original equipment manufacturers) that integrate its components into their products, further expanding its market reach. The company also invests in research and development to innovate new products, which helps maintain its competitive edge and drive future revenue growth.

Analog Devices Financial Statement Overview

Summary

Analog Devices shows strong financial health with robust revenue growth and profitability. The company effectively generates cash and delivers high returns on equity, despite a high debt-to-equity ratio suggesting potential leverage risks.

Income Statement

Analog Devices has demonstrated strong revenue growth with a 6.09% increase in the latest year. The gross profit margin is robust at 61.47%, indicating efficient production processes. However, the EBIT margin is notably low, suggesting potential challenges in operational efficiency. The net profit margin of 20.58% is healthy, reflecting solid profitability.

Balance Sheet

The company maintains a high debt-to-equity ratio of 3.61, indicating significant leverage, which could pose risks if not managed carefully. However, the return on equity is impressive at 95.16%, showcasing effective use of shareholder funds. The equity ratio is not explicitly calculated but appears stable given the substantial stockholders' equity.

Cash Flow

Free cash flow growth is strong at 16.32%, highlighting effective cash generation. The operating cash flow to net income ratio of 1.48 suggests good cash conversion efficiency. The free cash flow to net income ratio of 0.89 indicates a solid ability to generate cash relative to net income.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.02B	9.43B	12.31B	12.01B	7.32B
Gross Profit	6.02B	5.38B	7.88B	7.80B	4.86B
EBITDA	5.03B	4.20B	6.17B	5.60B	2.59B
Net Income	2.27B	1.64B	3.31B	2.75B	1.39B
Balance Sheet
Total Assets	47.99B	48.23B	48.79B	50.30B	52.32B
Cash, Cash Equivalents and Short-Term Investments	3.65B	2.36B	958.06M	1.47B	1.98B
Total Debt	8.95B	7.65B	7.01B	6.60B	6.82B
Total Liabilities	14.18B	13.05B	13.23B	13.84B	14.33B
Stockholders Equity	33.82B	35.18B	35.57B	36.47B	37.99B
Cash Flow
Free Cash Flow	4.28B	3.12B	3.56B	3.78B	2.39B
Operating Cash Flow	4.81B	3.85B	4.82B	4.48B	2.74B
Investing Cash Flow	-1.32B	-1.10B	-1.27B	-657.37M	2.14B
Financing Cash Flow	-2.98B	-1.71B	-4.06B	-4.29B	-3.96B

Analog Devices Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 281.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 281.29 is above the 20-day moving average (MA) of 247.42, above the 50-day MA of 242.20, and above the 200-day MA of 226.74, indicating a bullish trend. The MACD of 10.77 indicates Negative momentum. The RSI at 75.71 is Negative, neither overbought nor oversold. The STOCH value of 97.07 is Negative, 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	80 Outperform	$187.22B	34.86	23.34%	2.01%	13.66%	-45.40%
AMAT	78 Outperform	$213.50B	30.95	35.51%	0.66%	4.47%	0.48%
TXN	77 Outperform	$165.86B	33.30	29.60%	3.01%	9.90%	1.65%
ADI	77 Outperform	$137.73B	61.62	6.57%	1.38%	16.89%	39.29%
MRVL	76 Outperform	$83.89B	34.63	18.04%	0.24%	44.95%	―
NXPI	70 Outperform	$57.37B	27.99	21.19%	1.78%	-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.