ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
BIT:1ADBE - Euronext Milan - US00724F1012 - Common Stock - Currency: EUR
Taking everything into account, 1ADBE scores 7 out of 10 in our fundamental rating. 1ADBE was compared to 101 industry peers in the Software industry. Both the health and profitability get an excellent rating, making 1ADBE a very profitable company, without any liquidiy or solvency issues. 1ADBE has a correct valuation and a medium growth rate. These ratings would make 1ADBE suitable for 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.
Each year in the past 5 years 1ADBE had a positive operating cash flow.
1.2 Ratios
1ADBE's Return On Assets of 22.54% is amongst the best of the industry. 1ADBE outperforms 98.02% of its industry peers.
The Return On Equity of 1ADBE (51.55%) is better than 94.06% of its industry peers.
1ADBE's Return On Invested Capital of 30.78% is amongst the best of the industry. 1ADBE outperforms 98.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1ADBE is significantly above the industry average of 11.19%.
The 3 year average ROIC (27.26%) for 1ADBE is below the current ROIC(30.78%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.54% | ||
| ROE | 51.55% | ||
| ROIC | 30.78% |
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 better Profit Margin (30.63%) than 96.04% of its industry peers.
1ADBE's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 36.29%, 1ADBE belongs to the best of the industry, outperforming 96.04% of the companies in the same industry.
1ADBE's Operating Margin has improved in the last couple of years.
The Gross Margin of 1ADBE (89.15%) is better than 86.14% 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 | 36.29% | ||
| PM (TTM) | 30.63% | ||
| GM | 89.15% |
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.
1ADBE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1ADBE has a worse debt to assets ratio.
2.2 Solvency
1ADBE has an Altman-Z score of 9.28. This indicates that 1ADBE is financially healthy and has little risk of bankruptcy at the moment.
1ADBE's Altman-Z score of 9.28 is amongst the best of the industry. 1ADBE outperforms 88.12% of its industry peers.
The Debt to FCF ratio of 1ADBE is 0.67, which is an excellent value as it means it would take 1ADBE, only 0.67 years of fcf income to pay off all of its debts.
1ADBE's Debt to FCF ratio of 0.67 is amongst the best of the industry. 1ADBE outperforms 82.18% of its industry peers.
1ADBE has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
1ADBE has a Debt to Equity ratio (0.47) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 9.28 |
ROIC/WACC3.51
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.18 indicates that 1ADBE should not have too much problems paying its short term obligations.
1ADBE's Current ratio of 1.18 is in line compared to the rest of the industry. 1ADBE outperforms 45.54% of its industry peers.
A Quick Ratio of 1.18 indicates that 1ADBE should not have too much problems paying its short term obligations.
1ADBE has a Quick ratio of 1.18. This is comparable to the rest of the industry: 1ADBE outperforms 47.52% 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 | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.16% 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.
Looking at the last year, 1ADBE shows a quite strong growth in Revenue. The Revenue has grown by 10.80% 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)10.8%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.62%
3.2 Future
The Earnings Per Share is expected to grow by 11.51% on average over the next years. This is quite good.
Based on estimates for the next years, 1ADBE will show a quite strong growth in Revenue. The Revenue will grow by 9.39% on average per year.
EPS Next Y12.75%
EPS Next 2Y12.52%
EPS Next 3Y12.52%
EPS Next 5Y11.51%
Revenue Next Year9.32%
Revenue Next 2Y9.5%
Revenue Next 3Y9.65%
Revenue Next 5Y9.39%
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
With a Price/Earnings ratio of 19.25, 1ADBE is valued on the expensive side.
1ADBE's Price/Earnings ratio is rather cheap when compared to the industry. 1ADBE is cheaper than 89.11% of the companies in the same industry.
1ADBE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.65, which is the current average of the S&P500 Index.
1ADBE is valuated correctly with a Price/Forward Earnings ratio of 16.17.
Based on the Price/Forward Earnings ratio, 1ADBE is valued a bit cheaper than 79.21% of the companies in the same industry.
1ADBE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.25 | ||
| Fwd PE | 16.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ADBE is valued a bit cheaper than 63.37% of the companies in the same industry.
1ADBE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 1ADBE is cheaper than 82.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.49 | ||
| EV/EBITDA | 17.93 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of 1ADBE may justify a higher PE ratio.
1ADBE's earnings are expected to grow with 12.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.51
PEG (5Y)1.03
EPS Next 2Y12.52%
EPS Next 3Y12.52%
5. Dividend
5.1 Amount
1ADBE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1ADBE (6/23/2025, 7:00:00 PM)
327.55
-14.45 (-4.23%)
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 Cap139.60B
Analysts80
Price Target446.13 (36.2%)
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)2
Avg EPS beat(2)0.66%
Min EPS beat(2)0.18%
Max EPS beat(2)1.15%
EPS beat(4)4
Avg EPS beat(4)0.51%
Min EPS beat(4)0.06%
Max EPS beat(4)1.15%
EPS beat(8)8
Avg EPS beat(8)0.69%
EPS beat(12)10
Avg EPS beat(12)0.56%
EPS beat(16)12
Avg EPS beat(16)0.66%
Revenue beat(2)0
Avg Revenue beat(2)-0.88%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)-0.78%
Revenue beat(4)0
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-1.65%
Max Revenue beat(4)-0.78%
Revenue beat(8)0
Avg Revenue beat(8)-1.25%
Revenue beat(12)0
Avg Revenue beat(12)-1.36%
Revenue beat(16)1
Avg Revenue beat(16)-1.2%
PT rev (1m)-1.43%
PT rev (3m)-21.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.25 | ||
| Fwd PE | 16.17 | ||
| P/S | 7.29 | ||
| P/FCF | 17.49 | ||
| P/OCF | 17.17 | ||
| P/B | 12.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.93 |
EPS(TTM)17.02
EY5.2%
EPS(NY)20.25
Fwd EY6.18%
FCF(TTM)18.73
FCFY5.72%
OCF(TTM)19.08
OCFY5.83%
SpS44.9
BVpS26.68
TBVpS-0.79
PEG (NY)1.51
PEG (5Y)1.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.54% | ||
| ROE | 51.55% | ||
| ROCE | 38.46% | ||
| ROIC | 30.78% | ||
| ROICexc | 47.91% | ||
| ROICexgc | N/A | ||
| OM | 36.29% | ||
| PM (TTM) | 30.63% | ||
| GM | 89.15% | ||
| FCFM | 41.71% |
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-Score8
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 0.67 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 19.95% | ||
| Cap/Sales | 0.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.7% | ||
| Profit Quality | 136.16% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 9.28 |
F-Score8
WACC8.78%
ROIC/WACC3.51
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 Y12.75%
EPS Next 2Y12.52%
EPS Next 3Y12.52%
EPS Next 5Y11.51%
Revenue 1Y (TTM)10.8%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.62%
Revenue Next Year9.32%
Revenue Next 2Y9.5%
Revenue Next 3Y9.65%
Revenue Next 5Y9.39%
EBIT growth 1Y14.72%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year16.09%
EBIT Next 3Y11.14%
EBIT Next 5Y9.86%
FCF growth 1Y25.59%
FCF growth 3Y4.59%
FCF growth 5Y14.35%
OCF growth 1Y20.64%
OCF growth 3Y3.67%
OCF growth 5Y12.75%