Analog Devices Inc
Exchange: NASDAQSector: TechnologyIndustry: Semiconductors
Analog Devices, Inc. is a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge. ADI combines analog, digital, AI, and software technologies into solutions that combat climate change, reliably connect humans and the world, and help drive advancements in automation and robotics, mobility, healthcare, energy and data centers. With revenue of more than $11 billion in FY25, ADI ensures today's innovators stay Ahead of What's Possible.
Did you know?
Price sits at 79% of its 52-week range.
Current Price
$318.34
-0.70%GoodMoat Value
$223.14
29.9% overvaluedProfile
Valuation (TTM)
Market Cap$155.88B
P/E57.59
EV$157.50B
P/B4.61
Shares Out489.65M
P/Sales13.26
Revenue$11.76B
EV/EBITDA29.05
Analog Devices Inc (ADI) Stock Analysis
GoodMoat Analysis
Analog Devices is a high-quality semiconductor company with a durable competitive moat, but its current valuation appears significantly stretched relative to its intrinsic value. The stock's price of $322.03 is well above the GoodMoat Target of $223.14, suggesting a limited margin of safety. This presents a classic 'quality vs. price' dilemma for value investors.
Read full analysis
Analog Devices Inc (ADI) is a leading semiconductor company specializing in high-performance analog, mixed-signal, and power management chips. These components are critical for bridging the real and digital worlds, used in industrial, automotive, communications, and consumer markets. Applying the GoodMoat framework, ADI likely scores well in Moat Identification, with advantages in switching costs (its chips are deeply embedded in customer designs), niche dominance in precision analog, and potential technology leadership. Its financials show strong quality indicators, including a robust operating margin of 26.6% and manageable debt. However, the valuation assessment is unfavourable. With a P/E of 58.3 and a FCF yield of only 2.8%, the stock is priced for near-perfect growth. The provided GoodMoat Target of $223.14 implies the current price has a negative margin of safety, failing the Valuation Gate in the Decision Framework. While the business itself is strong, the price does not offer a sufficient cushion for a value-oriented entry. Further investigation would require a high-conviction view that growth will dramatically accelerate to justify today's premium. Analysis based on data as of 2024-05-15.
Market Cap$155.88B
Current Price$318.34
P/E Ratio57.59
Forward P/E—
PEG Ratio0.50
EPS$4.56
Book Value$69.06
P/B Ratio4.61
ADI Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 14.0% FCF growth (CAGR)
Cash vs Debt
Net Debt: 6.1B
Revenue
6.0B
FY19
5.6B
FY20
7.3B
FY21
12.0B
FY22
12.3B
FY23
9.4B
FY24
11.0B
FY25
Net Income
1.4B
FY19
1.2B
FY20
1.4B
FY21
2.7B
FY22
3.3B
FY23
1.6B
FY24
2.3B
FY25
ADI 52-Week Range
$163.57
$359.63
50-Day MA: $323.82200-Day MA: $266.56
Did you know?
Trading 30% above its estimated fair value of $223.14.
Analog Devices Inc (ADI) Financial Summary
Analog Devices Inc (ADI) is a Technology company in the Semiconductors industry, listed on NASDAQ. The stock currently trades at $318.34 with a market capitalization of $155.88B.
Key valuation metrics include a P/E ratio of 57.59, price-to-book ratio of 4.61, and EPS of $4.56. The company reports a profit margin of 23.0% and return on equity of 8.0%.
ADI Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $155.88B |
| P/E Ratio | 57.59 |
| EPS | $4.56 |
| P/B Ratio | 4.61 |
| P/S Ratio | 13.26 |
| EV/EBITDA | 29.05 |
| Dividend Yield | 1.23% |
| Profit Margin | 23.0% |
| Return on Equity | 8.0% |
| Debt/Equity | 0.25 |
ADI Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $5.99B | $1.36B |
| FY20 | $5.60B | $1.22B |
| FY21 | $7.32B | $1.39B |
| FY22 | $12.01B | $2.75B |
| FY23 | $12.31B | $3.31B |
| FY24 | $9.43B | $1.64B |
| FY25 | $11.02B | $2.27B |
Analog Devices Inc (ADI) Valuation
Based on GoodMoat's DCF model, Analog Devices Inc has a fair value estimate of $223.14. At the current price of $318.34, the stock appears 42.7% overvalued relative to our intrinsic value estimate.
ADI Quality Indicators
Analog Devices Inc maintains a profit margin of 23.0% and an operating margin of 26.6%. Return on equity stands at 8.0%. The current ratio is 2.19. Debt-to-equity ratio is 0.25.
About Analog Devices Inc
Analog Devices, Inc. is a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge. ADI combines analog, digital, AI, and software technologies into solutions that combat climate change, reliably connect humans and the world, and help drive advancements in automation and robotics, mobility, healthcare, energy and data centers. With revenue of more than $11 billion in FY25, ADI ensures today's innovators stay Ahead of What's Possible.
ADI Free Cash Flow
Analog Devices Inc generated $4.34B in trailing twelve-month free cash flow, representing an FCF yield of 2.78%. This moderate FCF yield indicates reasonable cash generation.
ADI Shares Outstanding
Analog Devices Inc has 0.49 billion shares outstanding at a share price of $318.34, giving it a market capitalization of $155.88B.
ADI Recent Insider Trades
Recent insider transactions at Analog Devices Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| STATA RAY | SELL | 608 | $193286.00 |
| STATA RAY | SELL | 1,226 | $415797.90 |
| ROCHE VINCENT (Chair & CEO) | SELL | 10,000 | $3.50M |