Analog Devices Inc. (NASDAQ:ADI)

The financial ratios of the company exhibit notable fluctuations over the analyzed period, reflecting shifts in market valuation and operational performance.

Price to Earnings (P/E) Ratio

The P/E ratio initially remains fairly stable around the high 30s to low 40s from early 2020 through early 2021. A sharp increase occurs in late 2021, with the ratio peaking near 69. This peak is followed by a decline throughout 2022 and early 2023, reaching a low in the mid-20s. Subsequently, the ratio rises again substantially towards the end of the timeline, reaching values above 75 before retreating to a level slightly above 60 by mid-2025. These variations suggest periods of changing investor sentiment regarding earnings expectations, with peaks possibly linked to market optimism or lower earnings, and troughs indicating either improved earnings or market pessimism.

Price to Operating Profit (P/OP) Ratio

Similar to the P/E ratio, the P/OP ratio shows relative stability initially, fluctuating in the high 20s to mid-30s range during the first part of the timeline. A pronounced increase is evident around late 2021, reaching above 56, followed by a general downward trend throughout 2022 and early 2023 to approximately 20. Later periods see a renewed ascent, with a peak near 62 before decreasing again. This pattern aligns with the P/E trends, indicating correlated market revaluations based on operating profitability.

Price to Sales (P/S) Ratio

The P/S ratio experiences a gradual increase from approximately 7.6 in early 2020 to over 10 by early 2021, reflecting growing market valuation relative to sales. A notable spike occurs in late 2021, reaching nearly 13, followed by a general decrease to around 6.75 in early 2023. Afterwards, the ratio climbs again, surpassing 12 in early 2025 before settling near 11.5 by mid-2025. These movements indicate variations in market pricing relative to the company's revenue generation, likely influenced by changes in growth expectations or sales performance.

Price to Book Value (P/BV) Ratio

The P/BV ratio shows an early increase from around 3.6 to nearly 5 between early 2020 and mid-2021. However, a significant drop follows in late 2021, bringing the ratio down to approximately 2.35 and maintaining a range near this level through much of 2022 and early 2023. Subsequently, a gradual recovery occurs, with the ratio rising back above 3.5 by mid-2025. This trend suggests fluctuations in market valuation relative to the company's net asset value, with the late 2021 decline potentially reflecting revaluation of tangible assets or changes in investor perception of equity value.

Overall, the company’s valuation multiples have experienced considerable volatility over the observed periods. Peaks in late 2021 across multiple ratios indicate a phase of heightened market optimism or possibly lower earnings and profits yielding elevated valuation multiples. The subsequent decreases into 2022 and early 2023 suggest improved profitability or more conservative market outlooks. The later resurgence of ratios implies renewed investor confidence or anticipated growth prospects. Such fluctuations underline the sensitivity of the company’s market valuation to operational results and broader market conditions.

The financial data reveals several notable trends over the observed periods. The share price generally exhibits a rising trajectory with fluctuations, while earnings per share (EPS) demonstrate variability with distinct growth phases and declines. The price-to-earnings (P/E) ratio reflects changes in market valuation relative to earnings, presenting notable volatility.

Share Price Trends

The share price increased from $123.89 at the beginning of 2020 to $244.87 by August 2025, showing an overall upward trend. There are periods of decline and consolidation, such as the dip from $180.79 in October 2021 to $159.92 in April 2022, followed by recovery phases. Noteworthy increases occurred from early 2023 to mid-2024, including a peak at $240.16 in May 2024. Despite some volatility, the long-term trend indicates substantial appreciation in share value.

Earnings Per Share (EPS) Patterns

EPS showed initial growth from $3.29 in early 2020 to a peak of $7.53 in July 2023. However, this peak was followed by a notable decline to $3.15 by August 2025. This volatility indicates a period of strong earnings growth followed by a contraction phase. Periodic recoveries are evident, such as the rise from $2.45 in January 2022 to $6.78 in January 2023. The EPS trends suggest earnings performance is somewhat cyclical or sensitive to certain factors impacting profitability.

P/E Ratio Volatility

The P/E ratio oscillated significantly from the mid-30s at the start of 2020 to a high of 76.64 in May 2025. Notably high P/E levels were observed during periods when EPS was low, such as in October 2021 and November 2024, implying elevated market expectations despite weaker earnings. Conversely, lower P/E ratios in early 2023 coincide with peak EPS, indicating the stock's relative valuation was more aligned with earnings at those times. The fluctuations in P/E ratio suggest investor sentiment and market valuation dynamics varied substantially over the periods.

Overall, the data highlights a pattern of share price growth supported by increasing earnings until mid-2023, after which earnings contracted while share prices remained relatively high, leading to elevated P/E ratios and implying increased market optimism or speculative valuation. The combination of EPS volatility and fluctuating P/E ratios suggests a business environment with variable profitability and changing market perceptions over the analyzed timeframe.

Share Price Trend

The share price initially decreased from approximately $124 in early 2020 to around $115 in mid-2020 but then began a general upward trajectory, reaching a peak near $240 in mid-2024. This growth shows some volatility, with intermittent declines such as the drop from about $180 at the end of 2021 to approximately $160 in early 2022. After reaching the high point, the share price experienced fluctuations but generally remained elevated above $200 towards the end of the period.

Operating Profit Per Share (OPPS) Trend

Operating profit per share exhibited a slight downward trend in early 2020, descending from $4.15 to around $3.72 by August 2020. Subsequently, the OPPS increased steadily, peaking significantly at $8 in early 2023. Following this peak, there was a gradual decline to about $4 by mid-2025. This cycle indicates a period of strong profitability growth followed by a normalization to more moderate levels.

Price-to-Operating-Profit Ratio (P/OP)

The P/OP ratio moved inversely to the operating profit per share for much of the period. It was relatively stable around 30 in the early quarters of 2020, then surged dramatically to over 55 by late 2021 and early 2022, marking a period where the share price was high relative to operating profits. This ratio fell significantly by early 2023 to below 25, coinciding with rising operating profits. Following this, fluctuations occurred with the ratio climbing back above 50 into 2024 before settling somewhat around the high 40s by mid-2025.

Key Insights

Overall, the data depicts a company with an initially volatile share price and operating profit that both stabilized and grew substantially by early 2023. The substantial increase in operating profit per share during this time led to a compression of the valuation multiple (P/OP), suggesting improved earnings justified the share price. However, in 2024, despite a high share price, the operating profits declined, resulting in an expanded valuation multiple, indicating increased market optimism or expectations not fully supported by earnings at that time.

The subsequent partial recovery of operating profits and corresponding moderate decline in share price and P/OP towards the end of the timeline may reflect a market adjustment to more sustainable growth expectations. The fluctuations in the latter periods suggest sensitivity to profitability trends and market sentiment regarding future earnings potential.

The analyzed financial ratios and share price trends indicate varying investor sentiment and underlying business performance over the observed periods. The share price exhibits an overall upward trend with intermittent fluctuations, reflecting dynamic market responses.

Share Price

The share price increased from $123.89 to $244.87 over the period, nearly doubling in value. Notable peaks occurred around early 2024, reaching approximately $240.16, and again towards the end of the dataset. Some periods show declines or stagnation, such as a decrease after January 2022 and a dip around mid-2025, suggesting some market volatility or reaction to external factors.

Sales per Share

Sales per share demonstrate general growth from $15.63 to a peak of $25.76 in mid-2023, followed by a gradual decrease to around $18.83 before a slight recovery to $21.11. This pattern suggests the company experienced growth in revenue generation per share initially, but this growth slowed, potentially due to market or operational challenges, before partial recovery.

Price-to-Sales (P/S) Ratio

The P/S ratio shows variability, beginning at 7.93 and spiking sharply to 12.98 in late 2021, indicating increased investor valuation relative to sales. Afterward, the ratio declines below 7.5 mid-2022 to mid-2023, corresponding with rising sales per share but a relatively stable share price. The ratio rises again significantly in early 2024, peaking above 11, which may reflect heightened investor optimism or expectations of future growth, despite fluctuations in sales per share.

In summary, the company's share price has generally trended upward, with pronounced volatility. Sales per share showed a strong growth phase followed by a partial contraction, while the P/S ratio fluctuations imply shifting market expectations and valuation adjustments relative to sales performance. These patterns collectively suggest a company experiencing growth with periods of reassessment by investors possibly due to changing market conditions or company-specific factors.

The analysis of the financial trends over the reviewed periods reveals several notable patterns in the share price, book value per share (BVPS), and price-to-book value (P/BV) ratio.

Share Price Trends

The share price exhibited a general upward trajectory with periodic fluctuations. Starting at $123.89, it experienced a slight decline early in the series but then progressively increased, reaching peaks above $240 in the later periods. Notably, the share price demonstrated substantial growth after the midpoint of the timeline, with values surpassing $220 and $240 in multiple recent quarters, indicating renewed investor confidence or improved market conditions in those intervals.

Book Value Per Share (BVPS) Stability

The book value per share remained relatively stable throughout the periods, fluctuating within a narrow range. It initially hovered around the low 30s before a significant jump was recorded around the eighth period, where it rose sharply to the low 70s. Following this abrupt increase, BVPS maintained a consistent level close to 70 for the remainder of the time series, suggesting a structural change or an accounting event affecting equity valuation without significant further volatility.

Price-to-Book Value (P/BV) Ratio Dynamics

The P/BV ratio varied considerably over time, reflecting the interplay between the share price and BVPS trends. Early periods showed elevated ratios nearing 5, followed by a pronounced decrease to approximately 2.3 to 2.5 coinciding with the surge in BVPS. This decline indicates the market price adjusted relative to the increased book value. Subsequently, the ratio experienced a gradual increase, reaching values above 3 in recent periods, suggesting the share price outpaced the book value growth again. These fluctuations indicate changing market perceptions of valuation relative to the company's book equity.

In summary, the data illustrates a stable foundational book value per share with a marked step change, alongside a share price that has generally increased, particularly in later quarters. The P/BV ratio reflects these dynamics, displaying early high valuation multiples, a mid-series compression due to the book value adjustment, and a later increase consistent with rising market prices. This pattern suggests a period of valuation recalibration followed by positive market sentiment or performance expectations influencing share price appreciation.