ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
BIT:1ADBE - Euronext Milan - US00724F1012 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to 1ADBE. 1ADBE was compared to 100 industry peers in the Software industry. 1ADBE gets an excellent profitability rating and is at the same time showing great financial health properties. 1ADBE may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make 1ADBE a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
In the past year 1ADBE was profitable.
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 98.00% of the companies in the same industry.
1ADBE's Return On Equity of 60.00% is amongst the best of the industry. 1ADBE outperforms 95.00% of its industry peers.
With an excellent Return On Invested Capital value of 34.50%, 1ADBE belongs to the best of the industry, outperforming 98.00% of the companies in the same industry.
1ADBE had an Average Return On Invested Capital over the past 3 years of 27.26%. This is significantly above the industry average of 10.83%.
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
Looking at the Profit Margin, with a value of 30.39%, 1ADBE belongs to the top of the industry, outperforming 94.00% of the companies in the same industry.
1ADBE's Profit Margin has been stable in the last couple of years.
1ADBE's Operating Margin of 36.37% is amongst the best of the industry. 1ADBE outperforms 96.00% of its industry peers.
In the last couple of years the Operating Margin of 1ADBE has grown nicely.
1ADBE has a better Gross Margin (89.25%) than 89.00% of its industry peers.
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 | 36.37% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1ADBE is creating value.
1ADBE has less shares outstanding than it did 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 9.44 indicates that 1ADBE is not in any danger for bankruptcy at the moment.
1ADBE's Altman-Z score of 9.44 is amongst the best of the industry. 1ADBE outperforms 85.00% 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 85.00% of its industry peers.
1ADBE has a Debt/Equity ratio of 0.54. This is a neutral value indicating 1ADBE is somewhat dependend on debt financing.
1ADBE's Debt to Equity ratio of 0.54 is on the low side compared to the rest of the industry. 1ADBE is outperformed by 61.00% 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 | 0.54 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 9.44 |
ROIC/WACC3.24
WACC10.65%
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 Current ratio of 0.99. This is in the lower half of the industry: 1ADBE underperforms 65.00% of its industry peers.
A Quick Ratio of 0.99 indicates that 1ADBE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.99, 1ADBE is doing worse than 64.00% of the companies in the same industry.
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 | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
1ADBE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.16%, which is quite good.
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 10.63%.
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)13.16%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%12.95%
Revenue 1Y (TTM)10.63%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.62%
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 11.03% yearly.
The Revenue is expected to grow by 9.28% on average over the next years. This is quite good.
EPS Next Y14.34%
EPS Next 2Y13.45%
EPS Next 3Y13.32%
EPS Next 5Y11.03%
Revenue Next Year9.93%
Revenue Next 2Y9.69%
Revenue Next 3Y9.62%
Revenue Next 5Y9.28%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 18.67.
Based on the Price/Earnings ratio, 1ADBE is valued cheaply inside the industry as 89.00% of the companies are valued more expensively.
1ADBE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.50.
With a Price/Forward Earnings ratio of 15.43, 1ADBE is valued correctly.
1ADBE's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1ADBE is cheaper than 85.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. 1ADBE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.67 | ||
| Fwd PE | 15.43 |
4.2 Price Multiples
1ADBE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1ADBE is cheaper than 65.00% 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 86.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.45 | ||
| EV/EBITDA | 17.15 |
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 13.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.3
PEG (5Y)1
EPS Next 2Y13.45%
EPS Next 3Y13.32%
5. Dividend
5.1 Amount
1ADBE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1ADBE (7/11/2025, 7:00:00 PM)
314.05
-7.45 (-2.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.09%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap133.22B
Analysts80
Price Target433.35 (37.99%)
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)-2.86%
PT rev (3m)-11.54%
EPS NQ rev (1m)1.52%
EPS NQ rev (3m)1.37%
EPS NY rev (1m)1.41%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.67 | ||
| Fwd PE | 15.43 | ||
| P/S | 6.87 | ||
| P/FCF | 16.45 | ||
| P/OCF | 16.14 | ||
| P/B | 13.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.15 |
EPS(TTM)16.82
EY5.36%
EPS(NY)20.35
Fwd EY6.48%
FCF(TTM)19.1
FCFY6.08%
OCF(TTM)19.46
OCFY6.2%
SpS45.73
BVpS23.17
TBVpS-4.07
PEG (NY)1.3
PEG (5Y)1
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 | 9.44 |
F-Score7
WACC10.65%
ROIC/WACC3.24
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)13.16%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%12.95%
EPS Next Y14.34%
EPS Next 2Y13.45%
EPS Next 3Y13.32%
EPS Next 5Y11.03%
Revenue 1Y (TTM)10.63%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.62%
Revenue Next Year9.93%
Revenue Next 2Y9.69%
Revenue Next 3Y9.62%
Revenue Next 5Y9.28%
EBIT growth 1Y13.68%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year16.09%
EBIT Next 3Y11.14%
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%