Analog Devices Inc (ADI) Stock Analysis
Verdict: HOLD
Industrial recovery and AI-linked power demand drive a 'beat-and-raise' cycle, but extreme 60x P/E valuation limits immediate upside.
Investment score: 62/100
Analysis as of
Is Analog Devices Inc stock worth reviewing? AI model thesis
Analog Devices is riding a cyclical recovery lead by its Industrial segment (+56% growth). While fundamentals are elite, the valuation has front-run the recovery, trading at a significant premium to peers like Texas Instruments.
7-factor investment score
- Valuation: 35/100 (weight 20%)
- Financial Health: 85/100 (weight 15%)
- Technical Momentum: 75/100 (weight 15%)
- Earnings Quality: 80/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 70/100 (weight 10%)
- Risk-Adjusted Return: 50/100 (weight 15%)
Analog Devices Inc opportunities and risks
What speaks for ADI
- Industrial Cycle Upwing
What speaks against ADI
- Valuation Compression Risk
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ADI | 60.9x | 15.8x | 33.6x | 64.5% | 26.0% | 2.3% |
| MU | 45.3x | 18.8x | 29.4x | 58.4% | 41.5% | 0.9% |
| AMD | 168.0x | 22.5x | 103.9x | 50.3% | 13.4% | 1.0% |
| INTC | n/a | 10.7x | 53.0x | 35.4% | -5.9% | -0.5% |
| TXN | 51.8x | 15.1x | 35.0x | 57.3% | 29.1% | 1.3% |
| QCOM | 27.0x | 5.9x | 20.6x | 54.8% | 22.3% | 4.7% |
| Peer median | 45.3x | 15.1x | 35.0x | 54.8% | 22.3% | 1.0% |
Frequently asked questions about Analog Devices Inc (ADI)
Is ADI stock a good investment?
The cached TradeMates AI model rates Analog Devices Inc as HOLD with an investment score of 62/100. Analog Devices is riding a cyclical recovery lead by its Industrial segment (+56% growth). While fundamentals are elite, the valuation has front-run the recovery, trading at a significant premium to peers like Texas Instruments. This is algorithmic model output, not personal investment advice.
Is ADI stock a buy?
The TradeMates model verdict for ADI is HOLD with an investment score of 62/100. Treat this as a model signal to review, not a personal buy recommendation.