ADI

Analog Devices

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Technology

industry

Semiconductors

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

05/28/26

Business Summary

Analog Devices designs and sells high-performance analog, mixed-signal, and digital signal processing semiconductors that convert real-world signals—sound, temperature, motion, voltage—into actionable digital data. Its cash generation comes from selling specialized chips embedded deep inside industrial, automotive, and communications systems where reliability and precision matter more than price. The moat stems from long product life cycles, high switching costs, and deep engineering integration with customers, which reduces vendor churn. By focusing on mission-critical components rather than commoditized chips, the company captures pricing power and sticky recurring demand across economic cycles.

VALUATION

P/E

64.1

Market Cap ($M USD)

$170,939

Forward P/E

26.8

PEG

3.6

PRICE TO SALES

14.8

PRICE TO BOOK

5.1

EV / EBITDA

31.8

5-Year Average P/E

DIVIDEND

Yield

1.20%

Annual Payout

$4.07

Payout Ratio

72.00%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

9.80%

Financial Health & Profitability

Earnings Per Share

$5.50

Next Year EPS Growth Estimate

$13.06

Next Year Revenue Growth Estimate

9.50%

Return on Equity (ROE)

8.00%

Operating Margin

29.70%

Debt-to-Equity

0.3

Piotroski F-Score

7

Altman Z-Score

8.1

Return on Invested Capital (ROIC)

7.20%%

Current Ratio

1.8

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 64.1x earnings with a Forward P/E of 26.8, the market is clearly pricing in a material earnings normalization, yet the 3.6 PEG Forward suggests growth expectations may already be stretched relative to that multiple. An Altman Z-Score of 8.1 signals extremely low bankruptcy risk and strong balance sheet durability, reinforced by a 1.8 current ratio and manageable 29.70% Debt/Equity. However, the spread between a 64.1 trailing P/E and 26.8 forward multiple implies either distorted trailing earnings or aggressive forward optimism. This is not a distressed balance sheet story; it is a valuation compression and execution story where the market is paying up for stability but demanding real growth follow-through.

AI Exposure / Tech Reliance

As a Semiconductor company within Technology, ADI sits directly in the infrastructure layer that enables AI, automation, and advanced computing hardware. The industry’s structural role in powering data centers, edge devices, and industrial digitization positions it to benefit from long-cycle AI capital expenditure. Its ability to maintain profitability in this capital-intensive sector will determine how effectively it captures AI-driven demand cycles.

The Bull Case

A GARP investor sees a financially solid operator with a Piotroski F-Score of 7, indicating healthy fundamentals and operational discipline. ROIC at 7.20% and Return on Equity of 9.50% show capital is being deployed with moderate efficiency, while an 8.00% operating margin provides room for expansion if revenue scales. The Altman Z-Score of 8.1 removes solvency risk from the equation, and Debt/Equity at 29.70% is conservative for a semiconductor name. Institutional Ownership at 387.67 and a Consensus Rating of 2.10% suggest sophisticated capital remains engaged, and with a Forward P/E of 26.8 versus a trailing 64.1, earnings normalization could mechanically compress valuation if execution improves.

The Bear Case

The valuation is the obvious pressure point: a 64.1 P/E combined with a 3.6 PEG Forward signals investors are paying a premium multiple for growth that may not justify the price. Operating Margin of just 8.00% is thin for a semiconductor company, limiting downside protection in cyclical downturns. Short % of Float at 9.80% reflects a meaningful minority betting against the story, and a ROIC of 7.20% does not scream capital compounding machine. Add in a 0.3 TTM Yield and a payout structure that includes a Dividend Per Share of 1.20% with a Payout Ratio of $4.07, and income support is minimal relative to valuation risk.

Market Sentiment & Smart Money

Short Interest %

2.10%

Analyst Consensus

1.42

Average Analyst Price Target

$387.67

Institutional Ownership %

93.30%

1-Year Beta

1.38

Insider Buying % (6 Mo)

0.20%%

Distance to 52-Week High

96.40%%

Distance to 52-Week Low

209.40%%