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5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Analog Devices's 5-Year ROIIC % for the quarter that ended in Oct. 2025 was 4.73%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Analog Devices's 5-Year ROIIC % or its related term are showing as below:
LIM:ADI's 5-Year ROIIC % is ranked better than 54.48% of 916
companies
in the Semiconductors industry
Industry Median: 2.7
vs LIM:ADI: 4.73
Analog Devices (LIM:ADI) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Analog Devices 5-Year ROIIC % Related Terms
Analog Devices 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Analog Devices's 5-Year ROIIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LIM:ADI vs QCOM, MRVL, TXN: 5-Year ROIIC % Comparison
For the Semiconductors subindustry, Analog Devices's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Analog Devices 5-Year ROIIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Analog Devices's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Analog Devices's 5-Year ROIIC % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Analog Devices (LIM:ADI) has a 5-Year ROIIC % of 4.73 as of Oct. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Analog Devices and its competitors. According to the industry distribution chart, Analog Devices ranks #417 out of 916 companies in the Semiconductors industry, placing it in the top 45.5%.
Is Analog Devices' 5-Year ROIIC % too high?
Analog Devices' current 5-Year ROIIC % is 4.73. The Semiconductors industry median 5-Year ROIIC % is 2.70. Analog Devices' value of 4.73 is 75.2% above this industry median. Based on the distribution chart, Analog Devices ranks #417 out of 916 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Analog Devices has a GF Score™ of 95/100, reflecting its overall financial health beyond just this single metric.
How does Analog Devices' 5-Year ROIIC % compare to QCOM and MRVL?
According to the Semiconductors industry distribution chart, Analog Devices ranks #417 out of 916 companies for 5-Year ROIIC %. This puts Analog Devices in the upper half of its industry. The industry median 5-Year ROIIC % is 2.70. Analog Devices' value of 4.73 is 75.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for a Semiconductors company?
The median 5-Year ROIIC % among Semiconductors companies is 2.70, based on 916 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Analog Devices's current 5-Year ROIIC % of 4.73 is 75.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Analog Devices and its competitors. For the Semiconductors industry, the median 5-Year ROIIC % is 2.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Analog Devices's current 5-Year ROIIC % is 4.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Analog Devices stock overvalued right now?
Analog Devices (LIM:ADI) has a current 5-Year ROIIC % of 4.73. The stock's GF Value™ is $224.52, compared to a current price of $277.20 — trading 23.5% above its estimated fair value. The current 5-Year ROIIC % is 4.73 and 75.2% above the Semiconductors industry median of 2.70. Analog Devices' overall GF Score™ is 95/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Analog Devices (LIM:ADI), the current 5-Year ROIIC % is 4.73 as of Oct. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Analog Devices (LIM:ADI) Overvalued in 2026?
Based on GuruFocus' analysis, Analog Devices stock appears to be overvalued.
The current stock price of $277.20 is trading 23.5% above its estimated GF Value™ of $224.52.
Key valuation signals for LIM:ADI:
5-Year ROIIC %: 4.73
GF Value™: $224.52 vs. price of $277.20 (23.5% above fair value)
Industry Position: 75.2% above the Semiconductors median (#417 of 916)
No single metric tells the full story. See the LIM:ADI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Analog Devices is a leading analog, mixed-signal, and digital-signal processing chipmaker. The firm has a significant market share lead in converter chips, which are used to translate analog signals to digital and vice versa. The company serves tens of thousands of customers; more than half of its chip sales are to industrial and automotive end markets. ADI's chips are also incorporated into wireless infrastructure equipment.
95GF Score
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