One-glance verdict
Overvalued
$185.23 our estimate vs market $362.25
Wall Street consensus: $470.25 (153.9% higher than our fair-value estimate)
96% above our estimate, beyond the bull case
Fundamentals snapshot
Analog Devices, Inc.
ADI · NMS · Technology · Semiconductors
Current price
$362.25
52-week range
$223.47 - $445.91
Market cap
$175.53B
Balance sheet
Healthy
9.45x Adequate
Net debt $6.84B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 26.0% last year.
- Reward Returns 12.2% on equity, ahead of 33% of its peers.
- Risk Stock trades 1.1% above its 5-year average P/E.
- Risk Insider ownership is only 0.2% (peer median: 0.3%).
What this company does
Analog Devices, Inc.
Analog Devices makes essential microchips that act as translators, converting real-world signals like temperature and motion into digital language that electronics can understand. The company sells these critical components to a wide variety of industries, with car manufacturers and industrial automation companies being its biggest customers. Because its chips are needed in so many different products, the company's success isn't overly dependent on the health of just one market.
How the company got here
Analog Devices was started in 1965 by two MIT graduates, Ray Stata and Matthew Lorber, in the basement of an apartment building. Their first product was a small electronic module used in test equipment. The company went public in 1969 and soon began making specialized integrated circuits (tiny electronic circuits) that would become essential for computers to interact with the real world. Over the years, they expanded by investing in new technologies and acquiring other companies, including major deals for Linear Technology in 2017 and Maxim Integrated in 2021, which significantly grew their product offerings and market position.
What it actually does
Analog Devices makes high-performance chips that are the bridge between the real world and the digital world. Their products take real-world signals like sound, temperature, pressure, and light and convert them into digital data that electronics can understand, and vice-versa. You would find their technology inside of cars, factory robots, medical equipment, and consumer electronics. For example, their chips are used in a car's safety systems, in medical imaging devices, and to provide audio and video processing in home theater systems.
Industrial
This is the company's largest business area, making up about half of its sales. It provides chips for a huge range of applications, including factory automation, robotics, and energy management systems that make manufacturing more efficient and reliable. Customers in this segment are businesses building things like industrial control systems and scientific instruments that require very precise and dependable electronic components. This part of the business is a major focus for the company's growth.
Automotive
This segment, which accounts for roughly a quarter of the company's revenue, makes chips for vehicles. These aren't the main computer brains of the car, but rather the specialized electronics that manage things like safety systems (think stability control and driver assistance), in-car entertainment, and battery management systems for electric vehicles. As cars become more like computers on wheels with advanced safety features and electrification, this has become a very important and growing business for Analog Devices.
Communications
This part of the business provides critical components for the equipment that makes our digital communication possible, representing a smaller slice of the company's total revenue. Their chips are used in the background infrastructure for cellular networks and data centers. Companies that build the hardware for wireless and wired communication networks buy these components to ensure high-speed and reliable data transmission.
Consumer
This is the smallest segment and focuses on chips for personal electronics. You might find their technology in devices like digital cameras, home theater systems, and portable media players. These chips handle tasks like processing images, managing audio, and enabling advanced touch screen controls. While it's a smaller part of their business, it helps put their technology into the hands of everyday users.
What management is betting on now
The company is heavily focused on what it calls the 'Intelligent Edge,' which means putting more processing power and artificial intelligence into devices where data is first collected, rather than sending it all to the cloud. They are making big investments in the industrial and automotive markets, seeing major opportunities as factories become more automated and cars become more electric and autonomous. A key part of their strategy includes making strategic acquisitions, like the recent purchase of Empower Semiconductor, to strengthen their offerings in high-performance power management, especially for AI applications.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$885.41M
FY2025 Q1
$977.83M
FY2025 Q2
$729.21M
FY2025 Q3
$1.09B
FY2025 Q4
$1.49B
FY2026 Q1
$1.26B
FY2026 Q2
$734.34M
FY2026 Q3
$1.46B
Revenue
$4.02B
Net income
$1.34B
Diluted EPS
2.74
Operating cash flow
$1.60B
Free cash flow
$1.46B
Fetching…
Sources
Revenue
$3.62B
Net income
$1.18B
Diluted EPS
2.40
Operating cash flow
$872.04M
Free cash flow
$734.34M
Fetching…
Sources
Revenue
$3.16B
Net income
$830.83M
Diluted EPS
1.69
Operating cash flow
$1.37B
Free cash flow
$1.26B
Fetching…
Sources
Revenue
$3.08B
Net income
$787.74M
Diluted EPS
1.60
Operating cash flow
$1.70B
Free cash flow
$1.49B
Fetching…
Sources
Revenue
$2.88B
Net income
$518.52M
Diluted EPS
1.04
Operating cash flow
$1.17B
Free cash flow
$1.09B
Fetching…
Sources
Revenue
$2.64B
Net income
$569.77M
Diluted EPS
1.14
Operating cash flow
$819.48M
Free cash flow
$729.21M
Fetching…
Sources
Revenue
$2.42B
Net income
$391.32M
Diluted EPS
0.78
Operating cash flow
$1.13B
Free cash flow
$977.83M
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Sources
Revenue
$2.44B
Net income
$478.07M
Diluted EPS
0.95
Operating cash flow
$1.05B
Free cash flow
$885.41M
Fetching…
Sources
Is it cheap or expensive?
Fair value $185.23 vs current price $362.25
Wall Street consensus is the average analyst price target: $470.25 (153.9% higher than our fair-value estimate).
Our most-likely fair value is $185.23 a share — about 48.9% below today's price of $362.25, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net debt $6.8B. Interest coverage 9.5x.
Net debt
$6.84B
Interest coverage
9.45x
Analog Devices, Inc.'s profit covers its interest bill about 9.5 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
ADI
BASELINE
Analog Devices, Inc.
Total debt $9.16B Interest coverage 9.45x This is the baseline the peer rows are being compared against.
Total debt $14.05B Interest coverage 11.31x +20% vs ADI Carries about 1.2x more debt cushion than ADI.
Total debt $5.40B Interest coverage 2.46x -74% vs ADI Carries about 3.8x less debt cushion than ADI.
Total debt $10.98B Interest coverage 6.51x -31% vs ADI Carries about 1.5x less debt cushion than ADI.
Total debt $4.71B Interest coverage 10.59x +12% vs ADI Has roughly the same debt cushion as ADI.
Total debt $5.29B Interest coverage 6.61x -30% vs ADI Carries about 1.4x less debt cushion than ADI.
What you should know
The case for and against ADI
3 Rewards
2 Risks
Rewards
-
Revenue grew 26.0% last year.
-
Returns 12.2% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 1.1% above its 5-year average P/E.
-
Insider ownership is only 0.2% (peer median: 0.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
43.13x
Forward P/E
22.17x
P/B
5.23x
P/S
12.64x
EV/EBITDA
26.34x
PEG ratio
0.53x
Profitability
How much profit each dollar creates
Gross margin
65.8%
Operating margin
39.5%
Net margin
29.8%
ROE
12.2%
ROA
6.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.27x
Current ratio
1.25x
Quick ratio
0.83x
Total debt
$9.16B
Total cash
$2.32B
Growth
How the business has been compounding
Revenue TTM
$13.88B
Revenue 5Y CAGR
10.8%
EPS TTM
8.40
EPS 5Y CAGR
-4.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$5.55B
Free CF TTM
$4.28B
FCF margin
30.8%
Dividend
Shareholder payout
Yield
1.2%
Payout ratio
49.6%
Last ex-div date
2026-09-01