ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
BIT:1ADBE - US00724F1012 - Common Stock
302.75 EUR
-4.95 (-1.61%)
1ADBE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 106 industry peers in the Software industry. 1ADBE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on 1ADBE. 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.
1ADBE had a positive operating cash flow in the past year.
Each year in the past 5 years 1ADBE has been profitable.
In the past 5 years 1ADBE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1ADBE (24.44%) is better than 96.23% of its industry peers.
The Return On Equity of 1ADBE (60.00%) is better than 92.45% of its industry peers.
1ADBE has a Return On Invested Capital of 34.50%. This is amongst the best in the industry. 1ADBE outperforms 96.23% 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 12.79%.
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's Profit Margin of 30.39% is amongst the best of the industry. 1ADBE outperforms 87.74% 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's Operating Margin of 36.37% is amongst the best of the industry. 1ADBE outperforms 93.40% of its industry peers.
In the last couple of years the Operating Margin of 1ADBE has grown nicely.
With an excellent Gross Margin value of 89.25%, 1ADBE belongs to the best of the industry, outperforming 86.79% 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 | 36.37% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1ADBE is creating value.
1ADBE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1ADBE has been reduced compared to 5 years ago.
1ADBE has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.25 indicates that 1ADBE is not in any danger for bankruptcy at the moment.
1ADBE's Altman-Z score of 9.25 is amongst the best of the industry. 1ADBE outperforms 86.79% of its industry peers.
1ADBE has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
The Debt to FCF ratio of 1ADBE (0.65) is better than 84.91% 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 63.21% 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 | 0.54 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 9.25 |
ROIC/WACC3.11
WACC11.1%
2.3 Liquidity
A Current Ratio of 0.99 indicates that 1ADBE may have some problems paying its short term obligations.
1ADBE's Current ratio of 0.99 is on the low side compared to the rest of the industry. 1ADBE is outperformed by 67.92% of its industry peers.
1ADBE has a Quick 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.
The Quick ratio of 1ADBE (0.99) is worse than 66.98% 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
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.
Looking at the last year, 1ADBE shows a quite strong growth in Revenue. The Revenue has grown by 10.63% 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)13.16%
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
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 Year9.93%
Revenue Next 2Y9.67%
Revenue Next 3Y9.55%
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 18.03 indicates a rather expensive valuation of 1ADBE.
1ADBE's Price/Earnings ratio is rather cheap when compared to the industry. 1ADBE is cheaper than 86.79% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.08. 1ADBE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.91, the valuation of 1ADBE can be described as correct.
1ADBE's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1ADBE is cheaper than 85.85% 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 22.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.03 | ||
| Fwd PE | 14.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ADBE is valued a bit cheaper than 65.09% 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 83.02% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.89 | ||
| EV/EBITDA | 16.57 |
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 13.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)0.96
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 (8/28/2025, 7:00:00 PM)
302.75
-4.95 (-1.61%)
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 Cap128.43B
Analysts79.57
Price Target434.65 (43.57%)
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)0.3%
PT rev (3m)-3.97%
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%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.03 | ||
| Fwd PE | 14.91 | ||
| P/S | 6.63 | ||
| P/FCF | 15.89 | ||
| P/OCF | 15.6 | ||
| P/B | 13.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.57 |
EPS(TTM)16.79
EY5.55%
EPS(NY)20.3
Fwd EY6.71%
FCF(TTM)19.05
FCFY6.29%
OCF(TTM)19.41
OCFY6.41%
SpS45.63
BVpS23.11
TBVpS-4.06
PEG (NY)1.26
PEG (5Y)0.96
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 | 9.25 |
F-Score7
WACC11.1%
ROIC/WACC3.11
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 Y14.35%
EPS Next 2Y13.44%
EPS Next 3Y13.25%
EPS Next 5Y10.04%
Revenue 1Y (TTM)10.63%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.62%
Revenue Next Year9.93%
Revenue Next 2Y9.67%
Revenue Next 3Y9.55%
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%