ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
Europe - BIT:1ADBE - US00724F1012 - Common Stock
291 EUR
-14.5 (-4.75%)
Taking everything into account, 1ADBE scores 7 out of 10 in our fundamental rating. 1ADBE was compared to 103 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 is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, 1ADBE could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year 1ADBE was profitable.
In the past year 1ADBE had a positive cash flow from operations.
In the past 5 years 1ADBE has always been profitable.
Each year in the past 5 years 1ADBE had a positive operating cash flow.
1.2 Ratios
1ADBE has a better Return On Assets (24.19%) than 95.15% of its industry peers.
1ADBE has a Return On Equity of 59.11%. This is amongst the best in the industry. 1ADBE outperforms 95.15% of its industry peers.
1ADBE's Return On Invested Capital of 34.45% is amongst the best of the industry. 1ADBE outperforms 96.12% 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 12.76%.
The last Return On Invested Capital (34.45%) for 1ADBE is above the 3 year average (27.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.19% | ||
| ROE | 59.11% | ||
| ROIC | 34.46% |
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
With an excellent Profit Margin value of 30.01%, 1ADBE belongs to the best of the industry, outperforming 89.32% of the companies in the same industry.
1ADBE's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 36.25%, 1ADBE belongs to the best of the industry, outperforming 92.23% of the companies in the same industry.
In the last couple of years the Operating Margin of 1ADBE has grown nicely.
With an excellent Gross Margin value of 89.14%, 1ADBE belongs to the best of the industry, outperforming 84.47% of the companies in the same industry.
In the last couple of years the Gross Margin of 1ADBE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.25% | ||
| PM (TTM) | 30.01% | ||
| GM | 89.14% |
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
1ADBE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for 1ADBE has been reduced compared to 1 year ago.
The number of shares outstanding for 1ADBE has been reduced compared to 5 years ago.
Compared to 1 year ago, 1ADBE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.86 indicates that 1ADBE is not in any danger for bankruptcy at the moment.
1ADBE's Altman-Z score of 8.86 is amongst the best of the industry. 1ADBE outperforms 86.41% of its industry peers.
The Debt to FCF ratio of 1ADBE is 0.65, which is an excellent value as it means it would take 1ADBE, only 0.65 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.65, 1ADBE belongs to the top of the industry, outperforming 86.41% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that 1ADBE is somewhat dependend on debt financing.
1ADBE has a Debt to Equity ratio of 0.53. This is in the lower half of the industry: 1ADBE underperforms 68.93% of its industry peers.
Although 1ADBE does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 8.86 |
ROIC/WACC3.15
WACC10.95%
2.3 Liquidity
1ADBE has a Current Ratio of 1.02. This is a normal value and indicates that 1ADBE is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.02, 1ADBE is not doing good in the industry: 67.96% of the companies in the same industry are doing better.
1ADBE has a Quick Ratio of 1.02. 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 1.02. This is in the lower half of the industry: 1ADBE underperforms 66.99% of its industry peers.
The current and quick ratio evaluation for 1ADBE is rather negative, while it does have 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 | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.31% over the past year.
1ADBE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.69% yearly.
The Revenue has grown by 10.67% in the past year. This is quite good.
1ADBE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.00% yearly.
EPS 1Y (TTM)13.31%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%14.19%
Revenue 1Y (TTM)10.67%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.72%
3.2 Future
1ADBE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.15% yearly.
The Revenue is expected to grow by 8.91% on average over the next years. This is quite good.
EPS Next Y15.36%
EPS Next 2Y13.81%
EPS Next 3Y13.48%
EPS Next 5Y10.15%
Revenue Next Year10.43%
Revenue Next 2Y9.84%
Revenue Next 3Y9.63%
Revenue Next 5Y8.91%
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
A Price/Earnings ratio of 16.56 indicates a correct valuation of 1ADBE.
Compared to the rest of the industry, the Price/Earnings ratio of 1ADBE indicates a rather cheap valuation: 1ADBE is cheaper than 88.35% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.67. 1ADBE is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.07, which indicates a correct valuation of 1ADBE.
Based on the Price/Forward Earnings ratio, 1ADBE is valued cheaper than 85.44% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 31.86. 1ADBE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.56 | ||
| Fwd PE | 14.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ADBE is valued a bit cheaper than 66.99% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ADBE indicates a rather cheap valuation: 1ADBE is cheaper than 83.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.64 | ||
| EV/EBITDA | 15.11 |
4.3 Compensation for Growth
1ADBE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1ADBE has an outstanding profitability rating, which may justify a higher PE ratio.
1ADBE's earnings are expected to grow with 13.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)0.89
EPS Next 2Y13.81%
EPS Next 3Y13.48%
5. Dividend
5.1 Amount
1ADBE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1ADBE (11/3/2025, 7:00:00 PM)
291
-14.5 (-4.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.03%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap121.81B
Revenue(TTM)23.18B
Net Income(TTM)6.96B
Analysts78.72
Price Target406.5 (39.69%)
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)1
Avg EPS beat(2)0.24%
Min EPS beat(2)-0.06%
Max EPS beat(2)0.55%
EPS beat(4)3
Avg EPS beat(4)0.45%
Min EPS beat(4)-0.06%
Max EPS beat(4)1.15%
EPS beat(8)7
Avg EPS beat(8)0.5%
EPS beat(12)11
Avg EPS beat(12)0.67%
EPS beat(16)11
Avg EPS beat(16)0.26%
Revenue beat(2)0
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-0.6%
Max Revenue beat(2)-0.56%
Revenue beat(4)0
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-0.99%
Max Revenue beat(4)-0.56%
Revenue beat(8)0
Avg Revenue beat(8)-1.08%
Revenue beat(12)0
Avg Revenue beat(12)-1.21%
Revenue beat(16)0
Avg Revenue beat(16)-1.27%
PT rev (1m)-0.23%
PT rev (3m)-6.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.06%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.56 | ||
| Fwd PE | 14.07 | ||
| P/S | 6.06 | ||
| P/FCF | 14.64 | ||
| P/OCF | 14.35 | ||
| P/B | 11.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.11 |
EPS(TTM)17.57
EY6.04%
EPS(NY)20.69
Fwd EY7.11%
FCF(TTM)19.88
FCFY6.83%
OCF(TTM)20.28
OCFY6.97%
SpS48.02
BVpS24.38
TBVpS-3.41
PEG (NY)1.08
PEG (5Y)0.89
Graham Number98.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.19% | ||
| ROE | 59.11% | ||
| ROCE | 43.05% | ||
| ROIC | 34.46% | ||
| ROICexc | 49.53% | ||
| ROICexgc | 4255.63% | ||
| OM | 36.25% | ||
| PM (TTM) | 30.01% | ||
| GM | 89.14% | ||
| FCFM | 41.41% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 22.65% | ||
| Cap/Sales | 0.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.81% | ||
| Profit Quality | 137.98% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 8.86 |
F-Score7
WACC10.95%
ROIC/WACC3.15
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)13.31%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%14.19%
EPS Next Y15.36%
EPS Next 2Y13.81%
EPS Next 3Y13.48%
EPS Next 5Y10.15%
Revenue 1Y (TTM)10.67%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.72%
Revenue Next Year10.43%
Revenue Next 2Y9.84%
Revenue Next 3Y9.63%
Revenue Next 5Y8.91%
EBIT growth 1Y11.62%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year17.42%
EBIT Next 3Y11.33%
EBIT Next 5Y10.2%
FCF growth 1Y25.87%
FCF growth 3Y4.59%
FCF growth 5Y14.35%
OCF growth 1Y21.94%
OCF growth 3Y3.67%
OCF growth 5Y12.75%
ADOBE INC / 1ADBE.MI FAQ
What is the ChartMill fundamental rating of ADOBE INC (1ADBE.MI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to 1ADBE.MI.
Can you provide the valuation status for ADOBE INC?
ChartMill assigns a valuation rating of 7 / 10 to ADOBE INC (1ADBE.MI). This can be considered as Undervalued.
How profitable is ADOBE INC (1ADBE.MI) stock?
ADOBE INC (1ADBE.MI) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for 1ADBE stock?
The Price/Earnings (PE) ratio for ADOBE INC (1ADBE.MI) is 16.56 and the Price/Book (PB) ratio is 11.94.
Can you provide the financial health for 1ADBE stock?
The financial health rating of ADOBE INC (1ADBE.MI) is 8 / 10.