Fundamental analysis · SEC EDGAR · TTM through 02/05/2026

Fundamental analysis of Analog Devices Inc

ADI · Nasdaq · Technology

Fundamental quality

ATTRACTIVE

85

out of 100

Analog Devices Inc grows profitably: it increases revenue at double digits (16.1% a year) without giving up profitability (net margin 26%). On fundamental quality it scores 85 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Analog Devices designs analog chips: the ones that translate the physical world (temperature, sound, pressure, power) into digital signals. Its thousands of products serve industry, autos, communications and healthcare for decades at a time — a less glamorous but very profitable business.

What will shape its future

  • The industrial and automotive cycle, its biggest markets: its chips go where factory and car investment goes.
  • Electrification and automation, which multiply analog-chip content per vehicle or facility.
  • Its pricing power: critical, very long-lifecycle products that cost little relative to the value they add.

Breakdown by area

I.Growth
73

EPS growth: 13.9% · Revenue growth: 16.1%

II.Profitability
81

Net margin: 26% · ROE: 9.8% · ROIC: 8.9%

III.Financial health
90

Net debt/EBITDA: 1.25x · FCF: 35.8%

Source: SEC EDGAR · TTM through 02/05/2026

The score includes +4 for dividend strength: 18 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 73%
ROEbeats 31%
Growthbeats 56%
Cash generationbeats 86%
Less debtbeats 39%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Analog Devices Inc strengths

  • Excellent free-cash-flow generation (FCF margin of 35.8%): profit turns into real cash.
  • High gross margin (64.5%), pointing to pricing power.
  • Exceptional net margin (26%), high even for its sector: the business is clearly profitable.
  • Revenue growing (16.1% annualized).

Analog Devices Inc risks and weaknesses

  • Its net debt has grown over the period.

Analog Devices Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
20205,6031,2211,8434,089
20217,3181,3902,3915,316
202212,0142,7493,7765,078
202312,3063,3153,5565,443
20249,4271,6353,1225,043
202511,0202,2674,2795,646

Between 2020 and 2025, revenue went from $5,603M to $11,020M (+97%) and net income went from $1,221M to $2,267M (+86%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended May 2, 2026, versus the half-year ended May 3, 2025 (SEC filings):

  • Revenue+34%
  • Net income+108.8%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$3.89

per share, yearly

84.9% of earnings

Payout

at least 18 straight years raising it

Growth

That is what we can verify in the SEC filings, whose structured data only starts in 2008 and which many companies begin tagging later. The real streak may be considerably longer.

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Analog Devices Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Analog Devices Inc a good company to invest in?

In terms of business quality, Analog Devices Inc scores 85 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Analog Devices Inc a profitable company?

Very. Analog Devices Inc shows a net margin of 26% and an ROE of 9.8%, typical of a highly profitable business.

Does Analog Devices Inc have a lot of debt?

Not particularly. Its net debt is 1.25 times its EBITDA, a low level.

Is Analog Devices Inc growing?

Its revenue has grown 16.1% annualized in recent years and its earnings per share 13.9%.

Does Analog Devices Inc generate cash?

Yes. It converts about 35.8% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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