Analog Devices, Inc. (ADI) on Decifer

Decifer ranks ADI number 202 of 277 tracked names on durable business quality.

Why it ranks here

• Its returns on invested money are modest, around 5% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is growing about 17% a year, profits grew 39% over the past year, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• And it returns cash to shareholders.
• Our durability check found pressure on this name, which costs it a few points.
• Revenue growing about 17% with profits up 39% is encouraging, but modest returns around 5% and no stated worldview role hold it in the middle.

The current read

The evidence on ADI lines up on the supportive side: a live market force supports this name through its theme connection. One signal disagrees: the longer-term story is intact, but price is not rewarding it: semiconductor stocks are down 7.4% this week. The drop is large enough to signal near-term caution, worth watching but not the weight of the evidence.

Themes

• Semiconductors & AI Compute: Analog Devices, Inc. sits in the analog & mixed-signal layer of the Semiconductors & AI Compute story.

Read the full ADI research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.