ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
Europe - BIT:1ADBE - US00724F1012 - Common Stock
310.45 EUR
-2.45 (-0.78%)
1ADBE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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
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.
Each year in the past 5 years 1ADBE had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 24.44%, 1ADBE belongs to the best of the industry, outperforming 97.09% of the companies in the same industry.
The Return On Equity of 1ADBE (60.00%) is better than 94.17% of its industry peers.
The Return On Invested Capital of 1ADBE (34.50%) is better than 97.09% 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 12.80%.
The last Return On Invested Capital (34.50%) for 1ADBE is above the 3 year average (27.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.44% | ||
| ROE | 60% | ||
| ROIC | 34.5% |
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 30.39%. This is amongst the best in the industry. 1ADBE outperforms 89.32% of its industry peers.
In the last couple of years the Profit Margin of 1ADBE has remained more or less at the same level.
1ADBE has a Operating Margin of 36.37%. This is amongst the best in the industry. 1ADBE outperforms 93.20% of its industry peers.
In the last couple of years the Operating Margin of 1ADBE has grown nicely.
1ADBE has a Gross Margin of 89.25%. This is amongst the best in the industry. 1ADBE outperforms 87.38% of its industry peers.
1ADBE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.37% | ||
| PM (TTM) | 30.39% | ||
| GM | 89.25% |
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.
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 9.50 indicates that 1ADBE is not in any danger for bankruptcy at the moment.
1ADBE's Altman-Z score of 9.50 is amongst the best of the industry. 1ADBE outperforms 87.38% 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.
The Debt to FCF ratio of 1ADBE (0.65) is better than 85.44% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that 1ADBE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.54, 1ADBE is doing worse than 62.14% of the companies in the same industry.
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 | 0.54 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 9.5 |
ROIC/WACC3.14
WACC10.99%
2.3 Liquidity
1ADBE has a Current Ratio of 0.99. This is a bad value and indicates that 1ADBE is not financially healthy enough and could expect problems in meeting its short term obligations.
1ADBE has a worse Current ratio (0.99) than 65.05% of its industry peers.
A Quick Ratio of 0.99 indicates that 1ADBE may have some problems paying its short term obligations.
1ADBE has a Quick ratio of 0.99. This is in the lower half of the industry: 1ADBE underperforms 64.08% 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 | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.31% over the past year.
Measured over the past years, 1ADBE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.69% on average per year.
1ADBE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.67%.
Measured over the past years, 1ADBE shows a quite strong growth in Revenue. The Revenue has been growing by 14.00% on average per year.
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
Based on estimates for the next years, 1ADBE will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.04% on average per year.
1ADBE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.89% yearly.
EPS Next Y14.35%
EPS Next 2Y13.44%
EPS Next 3Y13.25%
EPS Next 5Y10.04%
Revenue Next Year10.34%
Revenue Next 2Y9.84%
Revenue Next 3Y9.61%
Revenue Next 5Y8.89%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.11 indicates a rather expensive valuation of 1ADBE.
1ADBE's Price/Earnings ratio is rather cheap when compared to the industry. 1ADBE is cheaper than 87.38% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1ADBE to the average of the S&P500 Index (27.38), we can say 1ADBE is valued slightly cheaper.
1ADBE is valuated correctly with a Price/Forward Earnings ratio of 15.48.
1ADBE's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1ADBE is cheaper than 83.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. 1ADBE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.11 | ||
| Fwd PE | 15.48 |
4.2 Price Multiples
64.08% of the companies in the same industry are more expensive than 1ADBE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1ADBE is valued cheaply inside the industry as 83.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.49 | ||
| EV/EBITDA | 17.33 |
4.3 Compensation for Growth
The 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 13.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)0.97
EPS Next 2Y13.44%
EPS Next 3Y13.25%
5. Dividend
5.1 Amount
No dividends for 1ADBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1ADBE (9/19/2025, 7:00:00 PM)
310.45
-2.45 (-0.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.81%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap131.69B
Analysts78.26
Price Target407.43 (31.24%)
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)0.06%
Min EPS beat(2)-0.06%
Max EPS beat(2)0.18%
EPS beat(4)3
Avg EPS beat(4)0.48%
Min EPS beat(4)-0.06%
Max EPS beat(4)1.15%
EPS beat(8)7
Avg EPS beat(8)0.53%
EPS beat(12)10
Avg EPS beat(12)0.62%
EPS beat(16)11
Avg EPS beat(16)0.3%
Revenue beat(2)0
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)-0.56%
Revenue beat(4)0
Avg Revenue beat(4)-0.89%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)-0.56%
Revenue beat(8)0
Avg Revenue beat(8)-1.2%
Revenue beat(12)0
Avg Revenue beat(12)-1.32%
Revenue beat(16)0
Avg Revenue beat(16)-1.29%
PT rev (1m)-7.58%
PT rev (3m)-8.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.37%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.11 | ||
| Fwd PE | 15.48 | ||
| P/S | 6.89 | ||
| P/FCF | 16.49 | ||
| P/OCF | 16.19 | ||
| P/B | 13.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.33 |
EPS(TTM)17.14
EY5.52%
EPS(NY)20.06
Fwd EY6.46%
FCF(TTM)18.82
FCFY6.06%
OCF(TTM)19.18
OCFY6.18%
SpS45.08
BVpS22.84
TBVpS-4.02
PEG (NY)1.26
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.44% | ||
| ROE | 60% | ||
| ROCE | 43.11% | ||
| ROIC | 34.5% | ||
| ROICexc | 46.41% | ||
| ROICexgc | 918.86% | ||
| OM | 36.37% | ||
| PM (TTM) | 30.39% | ||
| GM | 89.25% | ||
| FCFM | 41.75% |
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-Score7
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 20.77% | ||
| Cap/Sales | 0.79% | ||
| Interest Coverage | 51.06 | ||
| Cash Conversion | 105.92% | ||
| Profit Quality | 137.39% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 9.5 |
F-Score7
WACC10.99%
ROIC/WACC3.14
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 Y14.35%
EPS Next 2Y13.44%
EPS Next 3Y13.25%
EPS Next 5Y10.04%
Revenue 1Y (TTM)10.67%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.72%
Revenue Next Year10.34%
Revenue Next 2Y9.84%
Revenue Next 3Y9.61%
Revenue Next 5Y8.89%
EBIT growth 1Y13.68%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year16.1%
EBIT Next 3Y11.11%
EBIT Next 5Y10.02%
FCF growth 1Y27.13%
FCF growth 3Y4.59%
FCF growth 5Y14.35%
OCF growth 1Y22.31%
OCF growth 3Y3.67%
OCF growth 5Y12.75%