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Analog Devices (ADI) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NasdaqGS•Technology•Semiconductors
A
ExcellentMetricSide Score: 81/100
ProfitabilityProfit25/30
GrowthGrowth25/25
Balance SheetBalance13/25
Cash QualityCash18/20
Price & Volume
Market Cap $183.91B

Analog Devices, Inc. engages in the design, manufacture, testing, and marketing of integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia. It 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 consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs. The company also offers amplifiers to condition analog signals; and radio frequency and microwave ICs to support cellular infrastructure; and micro-electro-mechanical 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, it provides digital signal processing and system products for numeric calculations. The company serves clients in the industrial, automotive, consumer, instrumentation, aerospace, defense and healthcare, and communications markets through a direct sales force, third-party distributors, and independent sales representatives, as well as online. The company was incorporated in 1965 and is headquartered in Wilmington, Massachusetts.

Moat Signals

Competitive analysis based on 67 quarters of fundamental data

Pricing Power

Strong Moat

Operating margins are expanding at ~27.4%, suggesting durable pricing power and cost discipline.

Competitive Advantage

Moderate Moat

ROE is positive at ~6.2% on average, adequate but below the threshold typically associated with wide moats.

Cash Generation

Strong Moat

Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.

Demand Durability

Moderate Moat

Revenue shows resilience with 5 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.

Risk Signals

Data-driven red flags and warnings across 67 quarters

Low Risk

Margin Pressure

Healthy

Margins are stable or improving at ~32.2% — no sign of cost or pricing stress.

Earnings Quality

Healthy

FCF covers net income by 1.7x on average — earnings are well-supported by cash generation.

Leverage Risk

Healthy

D/E ratio is 0.2 — conservative capital structure with low financial risk.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Healthy

Free cash flow is consistently positive — the business self-funds without external capital reliance.

Share Dilution

Healthy

Share count is stable — no significant dilution or buyback activity.

Metrics at a Glance

as of May 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$12.74B
29.8%
Q. Revenue
$3.62B
TTM EBITDA
$4.14B
85.7%
TTM Op. Income
$4.14B
85.7%
Q. Op. Income
$1.38B
TTM Net Income
$3.31B
80.9%
Q. Net Income
$1.18B
EPS
$2.41
Shares Out.
$487.61M
1.7%
$12.74B in TTM revenue grew 29.8% YoY, reaching $3.62B last quarter. TTM EBITDA of $4.14B and TTM operating income of $4.14B shows growth is flowing through. Net income of $3.31B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
67.3%
10.3%
EBITDA Margin
38.1%
Op. Margin
38.1%
48.3%
Net Margin
32.5%
50.4%
Op. margin of 38.1% is up 12.4% YoY — cost efficiency is improving. Net margin at 32.5% and gross margin of 67.3% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
55.5x
P/S Ratio
14.4x
P/B Ratio
5.5x
At 55.5x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 14.4x and P/B of 5.5x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$47.95B
Cash
$2.44B
Long-Term Debt
$7.24B
Book Value
$33.74B
D/E Ratio
0.2
Debt/EBITDA
5.2
With $47.95B in assets and $7.24B in long-term debt, the D/E of 0.2and book value of $33.74B — shows a conservative capital structure — the company has a strong financial cushion to weather downturns.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$872.04M
Free Cash Flow
$734.34M
0.7%
FCF Margin
5.8%
FCF / Net Income
0.6
FCF of $734.34M on $872.04M in operating cash flow. The FCF / Net Income ratio of 0.2x indicates partial cash conversion — earnings quality needs attention.

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