Analog Devices Inc (ADI) stock analysis
Analog Devices Inc (ADI) clears 4 of this site's 8 mechanical value filters, 4 of 8 Buffett-style checks and 2 of 5 Lynch-style checks. At $385.76 it trades 123.7% above this site's neutral DCF value (a margin of safety of -123.7%). Its earnings quality rates Strong and it returns +2.0% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does Analog Devices do?
Analog Devices makes chips that turn real-world signals such as sound, light and temperature into digital data, and chips that manage power. Customers are mostly industrial, automotive, communications and healthcare equipment makers.
Brands and businesses it owns
- Linear Technology
- Maxim Integrated
What stands out about Analog Devices?
- The share price implies 28.9% yearly growth. At $385.76, ADI's free cash flow of $10.10 per share would have to grow 28.9% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for more growth than the baseline. Change the assumptions.
- Misses 2 of the 8 value filters. It fails Trailing P/E < 25 (45.60) and Price/Sales < 7 (13.58); the other 4 pass and 2 were not evaluated. See every filter.
- The margin of safety is rising. It went from -141% on Oct 7 to -124% on Oct 23 across 5 weekly readings. See the trend.
- Strongest against peers: revenue growth. At 33.6% (peer median 23.8%) it ranks 6th of 19 among semiconductors stocks this site tracks. See the ranking.
- Weakest against peers: P/E ratio. At 45.6× (peer median 42.5×) it ranks 14th of 19 among semiconductors stocks this site tracks. See the ranking.
How has Analog Devices' share price moved?
The interactive price chart needs JavaScript.
Is Analog Devices undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) -123.7%
- P/E vs. its own history 45.6x · the middle Real range: 24.3x–68.8x over 5 years (net income per diluted share from each fiscal year's 10-K, paired with the real closing price at that fiscal year-end).
- Wall St. analyst rating Buy · 4.24/5 37 analysts this month: 12 strong buy, 22 buy, 3 hold, 0 sell, 0 strong sell (Finnhub). Up from 4.23 last month.
- Altman Z″-Score (bankruptcy risk) 4.16 · Safe zone
- Earnings quality (is the profit real?) Strong · all 5 checks clean Beneish M-score −2.75 · accruals −5.3% of assets · 187% of profit arrived as cash · stock comp 2.9% of revenue · share count −0.9% a year. From the latest 10-K (year to Nov 2025) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) +2.0% net Latest fiscal year (2025): dividends 1.0% + buybacks 1.1% − stock comp 0.2%, as a share of today's market cap. Over 14 years its split-adjusted share count rose 61%. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) $17.67 per $1 of new profit · Capital-hungry · but only 7% return on capital Operating profit $1.4B → $2.9B, capital needed $13B → $41B, 2016–2025 (3-year averages); return on capital now 7% before tax. Buffett's See's Candies needed $0.42 per $1 of new profit, FlightSafety $3.20, a typical grower about $5. Cyclical: the answer depends on where in its cycle the window starts and ends. See Capital-Light Compounders.
- PEG (growth at a reasonable price) 1.39 · Above fair P/E 45.6× ÷ 32.9% a year of growth behind it. 150th lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 3 of 4 · misses capital-light Capital-light growth: not cleared (only 7% return on capital); Profit is real: cleared; Cash to owners: cleared; Fair price (PEG): cleared. See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 2 flags
- Standing vs. sector peers 5 of 7 measures above the median Compared with the 19 other semiconductors stocks this site tracks: 1 in the top third, 2 in the bottom third.
- Dividend payout sustainability 0/6 · clean
How does Analog Devices compare with its peers?
5 of 7 measures sit above the median of the 19 other semiconductors stocks tracked here, 1 in the top third and 2 in the bottom third.
- P/E ratiolower is cheaper · peer median 42.5× 45.6× ✕14th of 19
- Free-cash-flow yieldhigher is cheaper · peer median 2.5% 2.6% –9th of 20
- Return on equityhigher is better · peer median 25% 12% ✕14th of 20
- Net marginhigher is better · peer median 26.9% 29.8% –9th of 20
- Revenue growthhigher is better, year on year · peer median 23.8% 33.6% ✓6th of 19
- Debt / equitylower is safer · peer median 0.29 0.27 –10th of 20
- Dividend yieldamong dividend payers · peer median 0.66% 1.08% –7th of 16
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and ADI doesn't clear enough of it yet. In its favor: ADI is currently earning a strong return on shareholders' equity, carries a conservative amount of debt relative to equity, converts sales into profit at healthy margins, and earns many times its interest expense, so debt service isn't a worry. Where it comes up short: ADI and its five-year average return on equity falls short too, so this isn't just a one-off dip, hasn't grown earnings per share fast enough over five years to impress him, is trading above what a conservative discounted-cash-flow estimate says it's worth right now, and trades rich relative to owner earnings, the real cash the business could pay out.
- ROE (TTM) > 11% ✓
- ROE (5yr avg) > 11% ✕
- Debt/Equity < 0.5 ✓
- Pretax margin > 15% ✓
- EPS growth (5yr) > 7% ✕
- Interest coverage > 5x ✓
- Trading below intrinsic value (DCF) ✕
- Price vs. owner earnings < 25x ✕
- Bonus: returning capital via buybacks FY2025
Lynch looked for growth stories that weren't overpriced for that growth, and ADI falls short of his bar. In its favor: ADI isn't leaning on debt to fund that growth, and is generating real cash to back up a fast grower's higher price tag. Where it comes up short: ADI doesn't clear the tighter PEG bar a fast grower needs to justify its pace, is growing earnings outside the 20-50% band he considered sustainable for a fast grower - either not fast enough to earn the label, or a pace he'd flag as unlikely to hold up, and is priced above what he'd pay even for a company growing this quickly.
- PEG < 1 (stricter for fast growers) ✕
- EPS growth 20%-50% ✕
- Debt/Equity < 0.5 ✓
- P/E < 40 ✕
- Price/FCF < 40 ✓
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does Analog Devices pass?
- Market Cap > $25B $188.6B
- Trailing P/E < 25 45.60
- PEG Ratio < 1.5 1.39
- Price/Book < 8 5.62
- Price/Sales < 7 13.58
- EPS Growth YoY > -5% +162.6%
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is Analog Devices' margin of safety?
-141% on 2026-10-07 → -124% on 2026-10-23 (5 weekly readings).
Where is Analog Devices in its 52-week range?
What is the short interest in Analog Devices?
9,927,477 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with Analog Devices? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case -32%
- Short interest under 5% of float 2.0%
- Passes most of the 6 fundamental filters 4/6 passed
- Price run-up backed by value, not just momentum +73% off 52wk low
- Debt/equity stable since 2022 0.18 → 0.24
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have Analog Devices shareholders gained per year?
Earnings growth per share plus dividend.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from ADI's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do Analog Devices' 10-year financials show?
From ADI's own 10-K filings (SEC EDGAR): up to the last 10 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about Analog Devices
What kind of company is Analog Devices?
Analog Devices makes chips that turn real-world signals such as sound, light and temperature into digital data, and chips that manage power. Customers are mostly industrial, automotive, communications and healthcare equipment makers. Brands and businesses it owns include Linear Technology and Maxim Integrated. This site groups it with Semiconductors stocks.
Is Analog Devices trading above or below its DCF value?
At $385.76, ADI trades 123.7% above this site's neutral DCF value of $172.48 per share, a margin of safety of −123.7%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does Analog Devices pass?
ADI passes 4 of 8. It passes Market Cap > $25B ($188.6B), PEG Ratio < 1.5 (1.39), Price/Book < 8 (5.62) and EPS Growth YoY > -5% (+162.6%). It misses Trailing P/E < 25 (45.60) and Price/Sales < 7 (13.58). vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
What growth is Analog Devices' share price pricing in?
At $385.76, ADI's free cash flow of $10.10 per share would have to grow 28.9% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for more growth than the baseline. Change the assumptions.
Does Analog Devices pass the Buffett-style and Lynch-style checklists?
On this site's Buffett-style checklist ADI clears 4 of 8 checks and leans no; it misses ROE (5yr avg) > 11%, EPS growth (5yr) > 7% and Trading below intrinsic value (DCF) and 1 more. On the Lynch-style checklist it clears 2 of 5 and leans no, with Fast Grower as its Lynch category; it misses PEG < 1 (stricter for fast growers), EPS growth 20%-50% and P/E < 40. These are this site's own rules written in the style of each investor, not their personal views; the rules are in the Editorial Standards.
How much cash does Analog Devices return to shareholders?
ADI's net shareholder yield is +2.0%: the cash it returns through dividends and buybacks, minus stock-based compensation, as a share of its market value. Latest fiscal year (2025): dividends 1.0% + buybacks 1.1% − stock comp 0.2%, as a share of today's market cap. Over 14 years its split-adjusted share count rose 61%. Its trailing dividend yield is 1.08%, paid out of 41% of its free cash flow; the dividend-sustainability check raises 0 of 6 flags. See Shareholder Yield Leaders and the Sustainable Dividend Screener.
Where do these numbers come from?
- Financial statements: Analog Devices's 10-K annual report for the year ended Nov 1, 2025, filed Nov 25, 2025 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this Analog Devices Inc analysis
This page shows every value-investing check the site runs on Analog Devices Inc (ADI) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.