Analog Devices, Inc. (ADI)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses with durable advantages bought at sensible prices. Analog Devices sells analog and mixed-signal chips—data converters, power management, and related parts—that connect physical signals to digital systems. That is a solid franchise with many customers and uses. The filed numbers show a sharp cyclical upswing: in fiscal Q3 2026, the quarter ended 2026-08-01, revenue was $4.0B, net income $1.3B, and diluted EPS $2.74. In fiscal Q3 2025, the quarter ended 2025-08-02, revenue was $2.9B, net income $518.5M, and diluted EPS $1.04. The latest quarter's net margin was 33.32%. The balance sheet looks conservative, with debt-to-equity of 0.27, FairStock's Altman Z-Score of 8.69, and trailing free cash flow of $4.9B. But the price is demanding. At the 2026-10-13 close of $414.70, FairStock shows a P/E of 49.25, P/B of 5.99, FCF yield of 2.5%, and EV/EBITDA of 29.59. Its Graham Number is $114.53, giving a margin of safety of -262.09%. FairStock's ROE of 12.23% and ROCE of 6.41% are not extraordinary for that valuation. The Lynch category is cyclical semiconductors: earnings follow the economic cycle. FairStock's Piotroski F-Score is 6/9. Growth is impressive, but a cyclical company at a high multiple can punish late buyers when the cycle turns. I would need a much wider discount before calling it a bargain.

In plain English: Analog Devices makes chips that convert real-world signals into digital data and help manage power in electronics. The latest reported quarter showed strong sales, profit, and a wide net margin, so the business itself looks healthy. The stock price, however, looks expensive compared with the company's reported profits and net assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-08-01) · fiscal Q2 2026 10-Q (period ended 2026-05-02) · fiscal Q1 2026 10-Q (period ended 2026-01-31) · fiscal Q3 2025 10-Q (period ended 2025-08-02) · FY2025 10-K (period ended 2025-11-01) · FY2024 10-K (period ended 2024-11-02) · FY2023 10-K (period ended 2023-10-28)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer