CluenexAnalog Devices ADI
Analog Devices scores average on business quality (6.0 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Analog Devices does
Analog Devices makes analog, mixed-signal, and DSP integrated circuits that bridge the physical and digital worlds for industrial, automotive, and communications customers. Industrial and automotive systems engineers pay for precision signal conversion and power management chips that control critical physical processes.
- What it does best
Analog Devices dominates high-performance analog conversion with an operating margin of 35.7%, sitting in the 89th percentile of its sector. This edge relies on decades of proprietary circuit design expertise and deep customer engineering integrations that are difficult for competitors to displace.
- The main risk
A lofty price-to-earnings multiple of 48.9 leaves zero room for execution errors if industrial or automotive demand stumbles from cyclical highs. With revenue bouncing between $9.4B and $13.9B over recent years, any sudden pause in customer ordering directly compresses earnings.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 35.7% and FCF margin sits in the 87th sector percentile, driven by high gross margins of 65.8%. The business scales efficiently, turning strong revenue into high cash conversion.
High switching costs lock in industrial and automotive system designers who design these chips into complex hardware. An operating margin in the 89th sector percentile reflects this pricing power, though a mediocre moat score caps wider ecosystem dominance.
Revenue growth hit 16.9% over the latest reported period, recovering from a prior dip to $9.4B. The rebound shows momentum, though history shows cyclical swings rather than steady linear expansion.
Total debt sits at $8.6B against $3.7B in cash, while interest coverage of 14.1x keeps debt costs manageable. Free cash flow reached $4.9B, supporting solid cash generation getting moderately stronger.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
2 sold $3.5M outside pre-planned sales.
Our sealed record on ADI
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Analog Devices scores average on the Cluenex quality check (6.0 of 10), measured against its own industry. Profitability is strong, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: 2 sold $3.5M outside pre-planned sales.
Nov 23, 2026, after the close.
See ADI today
- Today's verdict on ADI, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Analog Devices (ADI)”, https://cluenex.com/stocks/adi/, data as of Oct 10, 2026.