ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ADBE - US00724F1012 - Common Stock
256.45 EUR
-5.8 (-2.21%)
1ADBE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 125 industry peers in the Software industry. 1ADBE gets an excellent profitability rating and is at the same time showing great financial health properties. 1ADBE scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
- In the past year 1ADBE had a positive cash flow from operations.
- Each year in the past 5 years 1ADBE has been profitable.
- Each year in the past 5 years 1ADBE had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 24.17%, 1ADBE belongs to the top of the industry, outperforming 93.60% of the companies in the same industry.
- 1ADBE has a Return On Equity of 61.34%. This is amongst the best in the industry. 1ADBE outperforms 94.40% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 36.51%, 1ADBE belongs to the top of the industry, outperforming 96.80% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1ADBE is significantly above the industry average of 12.89%.
- The last Return On Invested Capital (36.51%) for 1ADBE is above the 3 year average (31.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.17% | ||
| ROE | 61.34% | ||
| ROIC | 36.51% |
ROA(3y)20.26%
ROA(5y)19.2%
ROE(3y)44.54%
ROE(5y)40.01%
ROIC(3y)31.1%
ROIC(5y)28.47%
1.3 Margins
- 1ADBE has a better Profit Margin (30.00%) than 89.60% of its industry peers.
- 1ADBE's Profit Margin has declined in the last couple of years.
- 1ADBE has a Operating Margin of 36.63%. This is amongst the best in the industry. 1ADBE outperforms 93.60% of its industry peers.
- In the last couple of years the Operating Margin of 1ADBE has remained more or less at the same level.
- 1ADBE has a better Gross Margin (89.27%) than 86.40% of its industry peers.
- 1ADBE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.63% | ||
| PM (TTM) | 30% | ||
| GM | 89.27% |
OM growth 3Y1.88%
OM growth 5Y1.28%
PM growth 3Y3.55%
PM growth 5Y-6%
GM growth 3Y0.59%
GM growth 5Y0.6%
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
- Compared to 1 year ago, 1ADBE has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 8.21 indicates that 1ADBE is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 8.21, 1ADBE belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
- 1ADBE has a debt to FCF ratio of 0.63. This is a very positive value and a sign of high solvency as it would only need 0.63 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 0.63, 1ADBE belongs to the best of the industry, outperforming 82.40% 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 worse Debt to Equity ratio (0.53) than 67.20% 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 | 0.53 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 8.21 |
ROIC/WACC3.32
WACC10.99%
2.3 Liquidity
- A Current Ratio of 1.00 indicates that 1ADBE may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.00, 1ADBE is doing worse than 72.00% of the companies in the same industry.
- A Quick Ratio of 1.00 indicates that 1ADBE may have some problems paying its short term obligations.
- The Quick ratio of 1ADBE (1.00) is worse than 71.20% 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 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 13.74% 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 15.87% on average per year.
- The Revenue has grown by 10.53% in the past year. This is quite good.
- The Revenue has been growing by 13.06% on average over the past years. This is quite good.
EPS 1Y (TTM)13.74%
EPS 3Y15.15%
EPS 5Y15.87%
EPS Q2Q%14.35%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y10.52%
Revenue growth 5Y13.06%
Sales Q2Q%10.49%
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 9.91% on average per year.
- The Revenue is expected to grow by 8.02% on average over the next years. This is quite good.
EPS Next Y14.38%
EPS Next 2Y13.69%
EPS Next 3Y12.98%
EPS Next 5Y9.91%
Revenue Next Year9.9%
Revenue Next 2Y9.55%
Revenue Next 3Y9.43%
Revenue Next 5Y8.02%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- 1ADBE is valuated correctly with a Price/Earnings ratio of 14.23.
- Compared to the rest of the industry, the Price/Earnings ratio of 1ADBE indicates a rather cheap valuation: 1ADBE is cheaper than 86.40% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of 1ADBE to the average of the S&P500 Index (27.47), we can say 1ADBE is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 12.44, 1ADBE is valued correctly.
- Based on the Price/Forward Earnings ratio, 1ADBE is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
- 1ADBE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 12.44 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1ADBE is valued a bit cheaper than 71.20% 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 86.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.67 | ||
| EV/EBITDA | 13.24 |
4.3 Compensation for Growth
- 1ADBE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 1ADBE has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as 1ADBE's earnings are expected to grow with 12.98% in the coming years.
PEG (NY)0.99
PEG (5Y)0.9
EPS Next 2Y13.69%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
- No dividends for 1ADBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1ADBE (1/16/2026, 7:00:00 PM)
256.45
-5.8 (-2.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-10 2025-12-10/amc
Earnings (Next)03-12 2026-03-12/amc
Inst Owners86.02%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap107.35B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts78.7
Price Target380.16 (48.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0.25%
Min EPS beat(2)-0.04%
Max EPS beat(2)0.55%
EPS beat(4)2
Avg EPS beat(4)0.15%
Min EPS beat(4)-0.06%
Max EPS beat(4)0.55%
EPS beat(8)6
Avg EPS beat(8)0.35%
EPS beat(12)10
Avg EPS beat(12)0.6%
EPS beat(16)11
Avg EPS beat(16)0.38%
Revenue beat(2)0
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-0.6%
Max Revenue beat(2)-0.59%
Revenue beat(4)0
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-0.99%
Max Revenue beat(4)-0.56%
Revenue beat(8)0
Avg Revenue beat(8)-0.95%
Revenue beat(12)0
Avg Revenue beat(12)-1.09%
Revenue beat(16)0
Avg Revenue beat(16)-1.22%
PT rev (1m)-3.74%
PT rev (3m)-5.13%
EPS NQ rev (1m)3.51%
EPS NQ rev (3m)3.29%
EPS NY rev (1m)0.55%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 12.44 | ||
| P/S | 5.25 | ||
| P/FCF | 12.67 | ||
| P/OCF | 12.44 | ||
| P/B | 10.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.24 |
EPS(TTM)18.02
EY7.03%
EPS(NY)20.61
Fwd EY8.04%
FCF(TTM)20.25
FCFY7.9%
OCF(TTM)20.62
OCFY8.04%
SpS48.85
BVpS23.89
TBVpS-3.55
PEG (NY)0.99
PEG (5Y)0.9
Graham Number98.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.17% | ||
| ROE | 61.34% | ||
| ROCE | 45.12% | ||
| ROIC | 36.51% | ||
| ROICexc | 55.47% | ||
| ROICexgc | N/A | ||
| OM | 36.63% | ||
| PM (TTM) | 30% | ||
| GM | 89.27% | ||
| FCFM | 41.45% |
ROA(3y)20.26%
ROA(5y)19.2%
ROE(3y)44.54%
ROE(5y)40.01%
ROIC(3y)31.1%
ROIC(5y)28.47%
ROICexc(3y)49.26%
ROICexc(5y)43.65%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)38.43%
ROCE(5y)35.18%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y13.31%
ROICexc growth 5Y14.65%
OM growth 3Y1.88%
OM growth 5Y1.28%
PM growth 3Y3.55%
PM growth 5Y-6%
GM growth 3Y0.59%
GM growth 5Y0.6%
F-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 0.63 | ||
| Debt/EBITDA | 0.65 | ||
| Cap/Depr | 21.88% | ||
| Cap/Sales | 0.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.32% | ||
| Profit Quality | 138.18% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 8.21 |
F-Score7
WACC10.99%
ROIC/WACC3.32
Cap/Depr(3y)28.17%
Cap/Depr(5y)36.06%
Cap/Sales(3y)1.15%
Cap/Sales(5y)1.63%
Profit Quality(3y)135.89%
Profit Quality(5y)141.18%
High Growth Momentum
Growth
EPS 1Y (TTM)13.74%
EPS 3Y15.15%
EPS 5Y15.87%
EPS Q2Q%14.35%
EPS Next Y14.38%
EPS Next 2Y13.69%
EPS Next 3Y12.98%
EPS Next 5Y9.91%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y10.52%
Revenue growth 5Y13.06%
Sales Q2Q%10.49%
Revenue Next Year9.9%
Revenue Next 2Y9.55%
Revenue Next 3Y9.43%
Revenue Next 5Y8.02%
EBIT growth 1Y12.47%
EBIT growth 3Y12.6%
EBIT growth 5Y14.5%
EBIT Next Year13.32%
EBIT Next 3Y10.22%
EBIT Next 5Y9.3%
FCF growth 1Y25.14%
FCF growth 3Y10.03%
FCF growth 5Y13.17%
OCF growth 1Y24.52%
OCF growth 3Y8.57%
OCF growth 5Y11.86%
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.
What is the valuation status of ADOBE INC (1ADBE.MI) stock?
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.
What is the valuation of ADOBE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ADOBE INC (1ADBE.MI) is 14.23 and the Price/Book (PB) ratio is 10.74.