ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
BIT:1ADBE - Euronext Milan - US00724F1012 - Common Stock - Currency: EUR
Taking everything into account, 1ADBE scores 7 out of 10 in our fundamental rating. 1ADBE was compared to 102 industry peers in the Software industry. 1ADBE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1ADBE has a decent growth rate and is not valued too expensively. These ratings could make 1ADBE a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
1ADBE had positive earnings in the past year.
1ADBE had a positive operating cash flow in the past year.
1ADBE had positive earnings in each of the past 5 years.
In the past 5 years 1ADBE always reported a positive cash flow from operatings.
1.2 Ratios
1ADBE's Return On Assets of 22.54% is amongst the best of the industry. 1ADBE outperforms 99.02% of its industry peers.
Looking at the Return On Equity, with a value of 51.55%, 1ADBE belongs to the top of the industry, outperforming 96.08% of the companies in the same industry.
1ADBE's Return On Invested Capital of 30.78% is amongst the best of the industry. 1ADBE outperforms 99.02% of its industry peers.
1ADBE had an Average Return On Invested Capital over the past 3 years of 27.26%. This is significantly above the industry average of 10.45%.
The last Return On Invested Capital (30.78%) for 1ADBE is above the 3 year average (27.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.54% | ||
| ROE | 51.55% | ||
| ROIC | 30.78% |
ROA(3y)18.04%
ROA(5y)18.7%
ROE(3y)35.38%
ROE(5y)35.67%
ROIC(3y)27.26%
ROIC(5y)24.7%
1.3 Margins
1ADBE has a Profit Margin of 30.63%. This is amongst the best in the industry. 1ADBE outperforms 94.12% of its industry peers.
1ADBE's Profit Margin has been stable in the last couple of years.
1ADBE has a Operating Margin of 36.29%. This is amongst the best in the industry. 1ADBE outperforms 97.06% of its industry peers.
In the last couple of years the Operating Margin of 1ADBE has grown nicely.
1ADBE has a Gross Margin of 89.15%. This is amongst the best in the industry. 1ADBE outperforms 87.25% of its industry peers.
1ADBE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.29% | ||
| PM (TTM) | 30.63% | ||
| GM | 89.15% |
OM growth 3Y-0.69%
OM growth 5Y3.18%
PM growth 3Y-5.41%
PM growth 5Y-0.43%
GM growth 3Y0.32%
GM growth 5Y0.93%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1ADBE is creating value.
The number of shares outstanding for 1ADBE has been reduced compared to 1 year ago.
Compared to 5 years ago, 1ADBE has less shares outstanding
1ADBE has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.83 indicates that 1ADBE is not in any danger for bankruptcy at the moment.
1ADBE's Altman-Z score of 9.83 is amongst the best of the industry. 1ADBE outperforms 90.20% of its industry peers.
The Debt to FCF ratio of 1ADBE is 0.67, which is an excellent value as it means it would take 1ADBE, only 0.67 years of fcf income to pay off all of its debts.
1ADBE's Debt to FCF ratio of 0.67 is amongst the best of the industry. 1ADBE outperforms 83.33% of its industry peers.
1ADBE has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
1ADBE has a worse Debt to Equity ratio (0.47) than 60.78% of its industry peers.
Even though the debt/equity ratio score it not favorable for 1ADBE, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 9.83 |
ROIC/WACC2.78
WACC11.09%
2.3 Liquidity
A Current Ratio of 1.18 indicates that 1ADBE should not have too much problems paying its short term obligations.
1ADBE has a Current ratio (1.18) which is comparable to the rest of the industry.
1ADBE has a Quick Ratio of 1.18. This is a normal value and indicates that 1ADBE is financially healthy and should not expect problems in meeting its short term obligations.
1ADBE has a Quick ratio of 1.18. This is comparable to the rest of the industry: 1ADBE outperforms 47.06% of its industry peers.
1ADBE does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.55% over the past year.
The Earnings Per Share has been growing by 18.69% on average over the past years. This is quite good.
Looking at the last year, 1ADBE shows a quite strong growth in Revenue. The Revenue has grown by 10.54% in the last year.
The Revenue has been growing by 14.00% on average over the past years. This is quite good.
EPS 1Y (TTM)13.55%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%13.39%
Revenue 1Y (TTM)10.54%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.27%
3.2 Future
The Earnings Per Share is expected to grow by 11.51% on average over the next years. This is quite good.
1ADBE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.39% yearly.
EPS Next Y12.75%
EPS Next 2Y12.52%
EPS Next 3Y12.52%
EPS Next 5Y11.51%
Revenue Next Year9.32%
Revenue Next 2Y9.51%
Revenue Next 3Y9.66%
Revenue Next 5Y9.39%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
1ADBE is valuated rather expensively with a Price/Earnings ratio of 21.74.
Compared to the rest of the industry, the Price/Earnings ratio of 1ADBE indicates a rather cheap valuation: 1ADBE is cheaper than 86.27% of the companies listed in the same industry.
1ADBE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
1ADBE is valuated rather expensively with a Price/Forward Earnings ratio of 17.73.
Based on the Price/Forward Earnings ratio, 1ADBE is valued a bit cheaper than 79.41% of the companies in the same industry.
1ADBE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.17.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 17.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ADBE is valued a bit cheaper than the industry average as 61.76% of the companies are valued more expensively.
1ADBE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 1ADBE is cheaper than 80.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.17 | ||
| EV/EBITDA | 19.67 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of 1ADBE may justify a higher PE ratio.
A more expensive valuation may be justified as 1ADBE's earnings are expected to grow with 12.52% in the coming years.
PEG (NY)1.71
PEG (5Y)1.16
EPS Next 2Y12.52%
EPS Next 3Y12.52%
5. Dividend
5.1 Amount
No dividends for 1ADBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1ADBE (5/29/2025, 7:00:00 PM)
364.6
+2.75 (+0.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners85.27%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap155.39B
Analysts80
Price Target452.61 (24.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.66%
Min EPS beat(2)0.18%
Max EPS beat(2)1.15%
EPS beat(4)4
Avg EPS beat(4)0.51%
Min EPS beat(4)0.06%
Max EPS beat(4)1.15%
EPS beat(8)8
Avg EPS beat(8)0.69%
EPS beat(12)10
Avg EPS beat(12)0.56%
EPS beat(16)12
Avg EPS beat(16)0.66%
Revenue beat(2)0
Avg Revenue beat(2)-0.88%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)-0.78%
Revenue beat(4)0
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-1.65%
Max Revenue beat(4)-0.78%
Revenue beat(8)0
Avg Revenue beat(8)-1.25%
Revenue beat(12)0
Avg Revenue beat(12)-1.36%
Revenue beat(16)1
Avg Revenue beat(16)-1.2%
PT rev (1m)1.55%
PT rev (3m)-20.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.68%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 17.73 | ||
| P/S | 8 | ||
| P/FCF | 19.17 | ||
| P/OCF | 18.82 | ||
| P/B | 13.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.67 |
EPS(TTM)16.77
EY4.6%
EPS(NY)20.57
Fwd EY5.64%
FCF(TTM)19.02
FCFY5.22%
OCF(TTM)19.38
OCFY5.31%
SpS45.6
BVpS27.1
TBVpS-0.8
PEG (NY)1.71
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.54% | ||
| ROE | 51.55% | ||
| ROCE | 38.46% | ||
| ROIC | 30.78% | ||
| ROICexc | 47.91% | ||
| ROICexgc | N/A | ||
| OM | 36.29% | ||
| PM (TTM) | 30.63% | ||
| GM | 89.15% | ||
| FCFM | 41.71% |
ROA(3y)18.04%
ROA(5y)18.7%
ROE(3y)35.38%
ROE(5y)35.67%
ROIC(3y)27.26%
ROIC(5y)24.7%
ROICexc(3y)43%
ROICexc(5y)37.74%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)34.07%
ROCE(5y)30.87%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y17.87%
ROICexc growth 5Y9.83%
OM growth 3Y-0.69%
OM growth 5Y3.18%
PM growth 3Y-5.41%
PM growth 5Y-0.43%
GM growth 3Y0.32%
GM growth 5Y0.93%
F-Score8
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 0.67 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 19.95% | ||
| Cap/Sales | 0.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.7% | ||
| Profit Quality | 136.16% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 9.83 |
F-Score8
WACC11.09%
ROIC/WACC2.78
Cap/Depr(3y)38.09%
Cap/Depr(5y)42.76%
Cap/Sales(3y)1.74%
Cap/Sales(5y)2.14%
Profit Quality(3y)141.67%
Profit Quality(5y)133.73%
High Growth Momentum
Growth
EPS 1Y (TTM)13.55%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%13.39%
EPS Next Y12.75%
EPS Next 2Y12.52%
EPS Next 3Y12.52%
EPS Next 5Y11.51%
Revenue 1Y (TTM)10.54%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.27%
Revenue Next Year9.32%
Revenue Next 2Y9.51%
Revenue Next 3Y9.66%
Revenue Next 5Y9.39%
EBIT growth 1Y14.72%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year16.09%
EBIT Next 3Y11.14%
EBIT Next 5Y9.86%
FCF growth 1Y25.59%
FCF growth 3Y4.59%
FCF growth 5Y14.35%
OCF growth 1Y20.64%
OCF growth 3Y3.67%
OCF growth 5Y12.75%