ADI
Analog Devices, Inc. Y
Valuation
Opportunity Score
G-OPERATOR Governance: G-OPERATOR
S-P5 Stack: S-P5
W-SCALE Economies of Scale
W-SWITCH Moat: W-SWITCH
M3 Methodology: M3
S-SHOCK-UPSTREAM Critical Mineral Supply Chain Fragility
V-WIDE-MOAT Wide Moat
Overview
Analog Devices is a global leader in the design and manufacture of high-performance analog, mixed-signal, and digital signal processing integrated circuits. The company provides essential technology for data conversion, power management, and thermal sensing across industrial, automotive, and communications sectors.
Investment Thesis
Although structural EPS growth is expected to decelerate from 56.7% in the current quarter to 13.9% over the next twelve months, the company continues to maintain high-margin operations. Bearish insider activity, characterized by $35.4 million in net sales over the last six months, suggests a lack of conviction in further valuation expansion at current levels. However, the firm's ability to generate significant cash remains intact, supported by a 38.8% free cash flow margin that allows for capital flexibility even as the semiconductor cycle cools. The investment case rests on whether the company's hardware moat can withstand supply chain fragility regarding critical minerals like Gallium and Tungsten.
🕵️ Insider Radar
| Date | Insider | Type | Value |
|---|---|---|---|
| 2026-04-03 | Sell | 3.2M | |
| 2026-03-12 | Sell | 193.3K | |
| 2026-03-12 | Sell | 172K | |
| 2026-03-12 | Sell | 280.4K | |
| 2026-03-12 | Sell | 167.9K |
🔭 Quarterly Summary
Analog Devices (ADI) demonstrated robust financial performance with year-over-year revenue growth of 30.4% and a sequential increase of 2.7%. The company maintains high profitability levels, reporting a gross margin of 64.7% and a significant free cash flow (FCF) margin of 38.8% for the trailing twelve months. Management's execution is reflected in a consistent track record of four consecutive earnings beats, positioning the firm strongly within the S-P5 semiconductor hardware stack.