Is the business good?
How good a business is ADI?
Analog Devices earns 9.7% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
9.7%
Return on invested capital · cost of capital 9.0% · 0.66 points above what the capital costs: growth creates value
- Operating margin
- 36%
Operating margin · Semiconductors median 8.5% · 12 months to Q3 2026
- Cash conversion
- 1.19×
Cash conversion · 1.88× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −1.6%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 27% |
| FY2021 | 23% |
| FY2022 | 27% |
| FY2023 | 31% |
| FY2024 | 22% |
| FY2025 | 27% |
Details›
- Gross margin12 months to Q3 2026
- 66%
- Operating margin12 months to Q3 2026
- 36%
- Net margin12 months to Q3 2026
- 30%
- Free cash flow margin
- 36%
- R&D as % of revenue
- 14%
- Revenue, trailing twelve months
- $13.9B
- Free cash flow, trailing twelve months
- $4.94B
- Net income, trailing twelve months
- $4.14B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 9.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.