# Analog Devices Inc. (ADI) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Semiconductors & Semiconductor Equipment. Price $362.25, market value $175.5 billion.

## Valuation
- **P/E (trailing): 43.1×** (5-yr avg 42.7×, 3-yr avg 47.1×). Analog Devices Inc. trades at 43.1× trailing earnings, close to its own five-year average of 42.7×. The Technology median in the September 2026 study was 32.1×. Forward P/E is 22.2×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.57**. A PEG of 0.57 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 12.6×**. Each dollar of revenue is priced at 12.6×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 5.2×**. The shares trade at 5.2× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 2.8%** (5-yr avg 4.0%). Free cash flow equals 2.8% of the market value, below its five-year average of 4.0%, so the shares are pricier on cash than usual.
- **Earnings yield: 2.3%**. The inverse of the P/E: 2.3% of the price is earned each year.

## Profitability
- **Gross margin: 65.8%**. Analog Devices Inc. keeps 65.8% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 35.5%**. 35.5% of revenue is left after running the business, an exceptional level.
- **Net margin: 20.6%**. 20.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 6.7%**. 6.7% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 9.9%**. Return on all capital, debt included, is 9.9%.
- **Return on assets: 8.6%**. Each dollar of assets produces 8.6% of profit.

## Growth
- **Revenue growth (1 yr): 16.9%** (3-yr -2.8%/yr, 5-yr 14.5%/yr). Revenue grew 16.9% over the last year, against 14.5% a year compounded over five years.
- **EPS growth (1 yr): 39.0%** (3-yr -4.6%/yr, 5-yr 6.8%/yr). Earnings per share rose 39.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 4.3%/yr**. Free cash flow has compounded at 4.3% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.24**. Debt is 0.24 times equity: a conservative balance sheet.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 1.21%** ($4.29 per share, trailing). Analog Devices Inc. yields 1.21%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 85%** (41% of free cash flow). 85% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 23**. 23 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 9.8%/yr** (1-yr 7.6%). The dividend has grown 9.8% a year over five years.

## Analyst view
- **Analyst consensus: strong_buy** (32 analysts). 32 analysts cover Analog Devices Inc.; the consensus is strong_buy, with an average price target of $470.25 (+30% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 48.6%** (YTD 34.4%, 3-mo -9.8%). The shares are up 48.6% over twelve months including dividends.
- **From 52-week high: -18.8%** (62.1% above the low). Trading 19% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 43**. An RSI of 43 is neutral.
- **Beta (1 yr): 1.59** (volatility 35%). Beta of 1.59 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ADI · Page: https://foliofundamentals.com/stocks/adi

Not investment advice.