Analog Devices Inc. (ADI) Stock

Analog Devices Inc. trades at a P/E ratio of 64.57, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 30.96 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.58 indicates reasonable value when growth is considered.

With a beta of 1.00, Analog Devices Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 3.36 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Analog Devices Inc. achieves a profit margin of 18.60%, meaning it retains $18.60 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 25.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 5.21% and ROA at 2.99%, the company achieves moderate returns on invested capital.

Analog Devices Inc.'s revenue grew by 22.30% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 87.10% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SEMICONDUCTORS & RELATED DEVICES industry averages for proper context.

Analog Devices Inc. offers a dividend yield of 1.67%, paying $3.82 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 6/4/2025.

The dividend sustainability can be assessed through the payout ratio - Analog Devices Inc. pays $3.82 per share in dividends against earnings of $3.67 per share, resulting in a payout ratio of 100.00%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for 6/18/2025.

Analog Devices Inc. has a market capitalization of $117.59B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 496.25M shares outstanding, the company's ownership is relatively concentrated. As a major player in the SEMICONDUCTORS & RELATED DEVICES industry, it competes with other firms in this sector.

Analog Devices Inc.'s book value per share is $70.55, while the current stock price is $227.82, resulting in a price-to-book (P/B) ratio of 3.23. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

35 analysts cover ADI with 63% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $245.49 implies 7.8% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:5 Strong Buy, 17 Buy, 12 Hold, 1 Sell, 0The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

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