Analog Devices (ADI) AI Stock Analysis

• Market Cap: $109.51B
• Dividend Yield: 1.71%
• Average Volume (3M): 3.25M
• Price to Earnings (P/E): 60.1
• Beta (1Y): 1.50
• Revenue Growth: -6.17%
• EPS Growth: -14.16%
• Country: US
• Employees: 24,000
• Sector: Technology
• Sector Strength: 94
• Industry: Semiconductors
• EPS (TTM): 1.85
• Shares Outstanding: 496,248,200
• 10 Day Avg. Volume: 3,797,419
• 30 Day Avg. Volume: 3,246,392
• 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: 0.95
• Enterprise Value/Revenue: 10.57
• Enterprise Value/Gross Profit: 17.98
• Enterprise Value/Ebitda: 23.66
• 1Y Price Target: $263.67
• Price Target Upside: 18.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 26

• Rating: 70 Outperform
• Price Target: $247.00 ▲(10.70% Upside)

Analog Devices' overall score reflects strong financial performance and positive earnings call outcomes, tempered by technical indicators suggesting a potential short-term downturn and a high valuation. Strong demand in core segments supports long-term prospects, but tariff and inventory concerns present notable 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.

Financial Performance

ADI delivered sales and EPS above consensus in the first quarter, beating revenue in all end markets.

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.

Tariffs Impact

Automotive pull-ins draw attention to the downside effects of tariffs over the next few quarters.

Valuation Concerns

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

Analog Devices Business Overview & Revenue Model

Company Description

Analog Devices, Inc. (ADI) is a leading global semiconductor company that specializes in the design, manufacturing, and marketing of high-performance analog, mixed-signal, and digital signal processing (DSP) integrated circuits (ICs). These components are critical in converting real-world phenomena into digital signals, enabling a broad range of applications across various industries. ADI's core products include data converters, amplifiers, radio frequency (RF) ICs, power management products, and sensors. The company's solutions are utilized in sectors such as industrial, automotive, communications, healthcare, and consumer electronics.

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 shows strong financial health with robust profitability, a stable balance sheet, and strong cash flow generation. The company exhibits efficient operations with consistent margins, though growth has slightly decelerated. Overall, it maintains a solid foundation in the semiconductor industry.

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	5.77B	5.38B	7.88B	7.80B	4.86B	3.69B
EBITDA	4.39B	4.20B	6.17B	5.60B	2.59B	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	6.60B	6.82B	5.19B
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: Neutral
• Last Price: 223.12
• 50DMA: Negative
• 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 Neutral. The current price of 223.12 is below the 20-day moving average (MA) of 231.81, below the 50-day MA of 231.13, and above the 200-day MA of 215.62, indicating a neutral trend. The MACD of -3.41 indicates Positive momentum. The RSI at 38.51 is Neutral, neither overbought nor oversold. The STOCH value of 20.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ADI.

Analog Devices Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMD	78 Outperform	$282.63B	93.89	4.70%	―	21.71%	99.00%
QCOM	77 Outperform	$157.36B	14.07	44.62%	2.36%	15.82%	34.20%
NXPI	74 Outperform	$52.56B	24.64	23.11%	1.97%	-7.53%	-21.88%
MRVL	72 Outperform	$66.07B	―	-3.54%	0.32%	21.60%	50.00%
ADI	70 Outperform	$109.51B	60.08	5.21%	1.71%	-6.17%	-14.16%
Sector *	69 Neutral	¥233.77B	14.28	7.64%	2.58%	9.19%	5.32%
TXN	68 Neutral	$168.55B	33.89	29.84%	2.93%	3.62%	-5.27%

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.