ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
BIT:1ADBE - Euronext Milan - US00724F1012 - Common Stock - Currency: EUR
Overall 1ADBE gets a fundamental rating of 7 out of 10. We evaluated 1ADBE against 97 industry peers in the Software industry. 1ADBE gets an excellent profitability rating and is at the same time showing great financial health properties. 1ADBE is not valued too expensively and it also shows a decent growth rate. With these ratings, 1ADBE could be worth investigating further 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.
1ADBE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1ADBE has a Return On Assets of 22.54%. This is amongst the best in the industry. 1ADBE outperforms 98.97% of its industry peers.
1ADBE has a better Return On Equity (51.55%) than 96.91% of its industry peers.
1ADBE has a better Return On Invested Capital (30.78%) than 98.97% 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 10.77%.
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
The Profit Margin of 1ADBE (30.63%) is better than 92.78% of its industry peers.
In the last couple of years the Profit Margin of 1ADBE has remained more or less at the same level.
The Operating Margin of 1ADBE (36.29%) is better than 93.81% of its industry peers.
In the last couple of years the Operating Margin of 1ADBE has grown nicely.
1ADBE has a Gross Margin of 89.15%. This is amongst the best in the industry. 1ADBE outperforms 88.66% of its industry peers.
1ADBE's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, 1ADBE has less shares outstanding
1ADBE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1ADBE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.18 indicates that 1ADBE is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.18, 1ADBE belongs to the best of the industry, outperforming 88.66% of the companies in the same industry.
1ADBE has a debt to FCF ratio of 0.67. This is a very positive value and a sign of high solvency as it would only need 0.67 years to pay back of all of its debts.
1ADBE has a better Debt to FCF ratio (0.67) than 84.54% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that 1ADBE is not too dependend on debt financing.
1ADBE has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: 1ADBE outperforms 41.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 9.18 |
ROIC/WACC2.89
WACC10.65%
2.3 Liquidity
A Current Ratio of 1.18 indicates that 1ADBE should not have too much problems paying its short term obligations.
1ADBE has a Current ratio (1.18) which is in line with its industry peers.
A Quick Ratio of 1.18 indicates that 1ADBE should not have too much problems paying its short term obligations.
The Quick ratio of 1ADBE (1.18) is comparable to the rest of the 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 | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.55% over the past year.
The Earnings Per Share has been growing by 18.69% on average over the past years. This is quite good.
Looking at the last year, 1ADBE shows a quite strong growth in Revenue. The Revenue has grown by 10.54% in the last year.
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)13.55%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%13.39%
Revenue 1Y (TTM)10.54%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.27%
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 11.51% on average per year.
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 Y12.78%
EPS Next 2Y12.56%
EPS Next 3Y12.52%
EPS Next 5Y11.51%
Revenue Next Year9.32%
Revenue Next 2Y9.51%
Revenue Next 3Y9.66%
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.
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
The Price/Earnings ratio is 20.16, which indicates a rather expensive current valuation of 1ADBE.
84.54% of the companies in the same industry are more expensive than 1ADBE, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.10, 1ADBE is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.43, the valuation of 1ADBE can be described as correct.
Based on the Price/Forward Earnings ratio, 1ADBE is valued cheaper than 83.51% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.74. 1ADBE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.16 | ||
| Fwd PE | 16.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ADBE is valued a bit cheaper than the industry average as 60.82% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ADBE indicates a rather cheap valuation: 1ADBE is cheaper than 83.51% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.78 | ||
| EV/EBITDA | 17.61 |
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.
A more expensive valuation may be justified as 1ADBE's earnings are expected to grow with 12.52% in the coming years.
PEG (NY)1.58
PEG (5Y)1.08
EPS Next 2Y12.56%
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 (5/5/2025, 7:00:00 PM)
338.05
+11.3 (+3.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners85.27%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap144.08B
Analysts80
Price Target445.72 (31.85%)
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)-9.34%
PT rev (3m)-21.38%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-0.68%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.16 | ||
| Fwd PE | 16.43 | ||
| P/S | 7.42 | ||
| P/FCF | 17.78 | ||
| P/OCF | 17.45 | ||
| P/B | 12.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.61 |
EPS(TTM)16.77
EY4.96%
EPS(NY)20.57
Fwd EY6.09%
FCF(TTM)19.01
FCFY5.62%
OCF(TTM)19.37
OCFY5.73%
SpS45.58
BVpS27.09
TBVpS-0.8
PEG (NY)1.58
PEG (5Y)1.08
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 | 9.18 |
F-Score8
WACC10.65%
ROIC/WACC2.89
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)13.55%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%13.39%
EPS Next Y12.78%
EPS Next 2Y12.56%
EPS Next 3Y12.52%
EPS Next 5Y11.51%
Revenue 1Y (TTM)10.54%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.27%
Revenue Next Year9.32%
Revenue Next 2Y9.51%
Revenue Next 3Y9.66%
Revenue Next 5Y9.39%
EBIT growth 1Y14.72%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year16.13%
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%