FCF $4.6b — solid, comfortably covers operations and capital return
Rev+29.8%TTM YoYA-
Revenue +29.8% — strong growth, well above S&P median (~7%)
D/E0.26B
D/E 0.26 — near the Technology debt median (≈60th pctile)
P/E57.2xC+
P/E 57.2 — above the Technology median (≈75th pctile)
PEG0.67A-
PEG 0.67 — strong; Lynch's preferred zone
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 66.9
Quality0.71
Growth0.93
Value0.45
Why this score
Raising its dividend
Entry · Margin of safety
52-week rangeNear 52-week high
14% off the 12-month high
vs DCF fair value119% aboveest. fair value ~$176
What the price assumes: free cash flow compounding at ~34% a year for the next decade — vs the ~21% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability17% · C+gross profit ÷ total assets (Novy-Marx)
ROIC8.0% · C+return on invested capital — not score-weighted
Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.
Why now
Semiconductors · market cap $185.2b. 14% off the 52-week high of $445.91. Revenue growing +30% — in hypergrowth territory. PEG 0.67 — paying under fair value for the growth rate. 30 sell-side analysts rate this a Buy with a mean 1-yr target of $457.73 (implying +19% upside).
Moat
Net margin 26% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. FCF converts 138% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined. $185.2b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Trailing P/E 57.2x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. P/S 14.5x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard. Semiconductor cyclicality — inventory corrections compress margins faster than analysts model. Monitor channel inventory and book-to-bill ratios as leading indicators.
Horizon
1-3 yr $457.73 (30-analyst consensus) — fundamentals + valuation re-rating. 5 yr $670.17 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $994.15 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
ADI vs the Top Picks average
Pillar
ADI
Book avg
Diff
Quality
0.71
0.83
-0.13
Growth
0.93
0.92
in line
Value
0.45
0.75
-0.29
Averaged across the 30 names in today's Top Picks (mean score 82.4). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · ADI
Trend
+5.0 over 35 daily scores
From 61.9 (Jun 22) → 66.9 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · ADI
$
%
%
Shares to buy
5
Position size
$1,920
3.8% of portfolio
Stop price
$287.94
25% below $383.93
$ at risk if stopped
$479.91
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Analog Devices, Inc. (ADI): score, valuation & FAQ
Analog Devices, Inc. (ADI) is a Semiconductors company that scores 66.9 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (A-) and PEG (A-). On valuation, ADI sits about 119% above our discounted-cash-flow fair value — the current price implies roughly 34% annual free-cash-flow growth over the next decade.
Is ADI a good stock to buy?
Bull Rankings scores ADI 66.9 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by Rev (A-) and PEG (A-). A score is a quantitative screen of Analog Devices, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does ADI score 66.9 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). ADI earns its highest marks on Rev (A-) and PEG (A-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is ADI overvalued or undervalued?
Based on $383.93, ADI sits about 119% above our discounted-cash-flow fair value — the current price implies roughly 34% annual free-cash-flow growth over the next decade. It trades at a 57.2x× P/E (graded C+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in ADI?
Trailing P/E 57.2x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. P/S 14.5x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard. Semiconductor cyclicality — inventory corrections compress margins faster than analysts model. Monitor channel inventory and book-to-bill ratios as leading indicators.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.