ADOBE INC (ADB.DE) Stock Fundamental Analysis
FRA:ADB - Deutsche Boerse Ag - US00724F1012 - Common Stock - Currency: EUR
Overall ADB gets a fundamental rating of 7 out of 10. We evaluated ADB against 101 industry peers in the Software industry. ADB gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on ADB. These ratings would make ADB suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
ADB had positive earnings in the past year.
In the past year ADB had a positive cash flow from operations.
Each year in the past 5 years ADB has been profitable.
In the past 5 years ADB always reported a positive cash flow from operatings.
1.2 Ratios
ADB has a better Return On Assets (24.44%) than 99.01% of its industry peers.
ADB has a Return On Equity of 60.00%. This is amongst the best in the industry. ADB outperforms 97.03% of its industry peers.
ADB has a Return On Invested Capital of 34.50%. This is amongst the best in the industry. ADB outperforms 99.01% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADB is significantly above the industry average of 11.19%.
The last Return On Invested Capital (34.50%) for ADB 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
ADB's Profit Margin of 30.39% is amongst the best of the industry. ADB outperforms 94.06% of its industry peers.
In the last couple of years the Profit Margin of ADB has remained more or less at the same level.
ADB has a Operating Margin of 36.37%. This is amongst the best in the industry. ADB outperforms 97.03% of its industry peers.
In the last couple of years the Operating Margin of ADB has grown nicely.
The Gross Margin of ADB (89.25%) is better than 87.13% of its industry peers.
ADB's Gross Margin has been stable in the last couple of years.
| 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), ADB is creating value.
Compared to 1 year ago, ADB has less shares outstanding
ADB has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ADB has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.64 indicates that ADB is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.64, ADB belongs to the top of the industry, outperforming 90.10% of the companies in the same industry.
ADB 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.
Looking at the Debt to FCF ratio, with a value of 0.65, ADB belongs to the top of the industry, outperforming 84.16% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that ADB is somewhat dependend on debt financing.
The Debt to Equity ratio of ADB (0.54) is worse than 62.38% of its industry peers.
Even though the debt/equity ratio score it not favorable for ADB, 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 | 9.64 |
ROIC/WACC3.93
WACC8.78%
2.3 Liquidity
A Current Ratio of 0.99 indicates that ADB may have some problems paying its short term obligations.
With a Current ratio value of 0.99, ADB is not doing good in the industry: 65.35% of the companies in the same industry are doing better.
A Quick Ratio of 0.99 indicates that ADB may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.99, ADB is doing worse than 64.36% of the companies in the same industry.
The current and quick ratio evaluation for ADB 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
ADB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.16%, which is quite good.
ADB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.69% yearly.
The Revenue has grown by 10.63% in the past year. This is quite good.
Measured over the past years, ADB 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
The Earnings Per Share is expected to grow by 11.51% on average over the next years. This is quite good.
ADB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.39% yearly.
EPS Next Y14.24%
EPS Next 2Y13.33%
EPS Next 3Y13.28%
EPS Next 5Y11.51%
Revenue Next Year9.89%
Revenue Next 2Y9.67%
Revenue Next 3Y9.65%
Revenue Next 5Y9.39%
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.
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
With a Price/Earnings ratio of 19.25, ADB is valued on the expensive side.
Based on the Price/Earnings ratio, ADB is valued cheaper than 88.12% of the companies in the same industry.
ADB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.65.
With a Price/Forward Earnings ratio of 15.95, ADB is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADB indicates a rather cheap valuation: ADB is cheaper than 80.20% of the companies listed in the same industry.
ADB 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 | 15.95 |
4.2 Price Multiples
ADB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADB is cheaper than 62.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ADB is valued cheaper than 83.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.04 | ||
| EV/EBITDA | 18.39 |
4.3 Compensation for Growth
ADB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ADB has an outstanding profitability rating, which may justify a higher PE ratio.
ADB's earnings are expected to grow with 13.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.35
PEG (5Y)1.03
EPS Next 2Y13.33%
EPS Next 3Y13.28%
5. Dividend
5.1 Amount
No dividends for ADB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:ADB (6/23/2025, 5:26:39 PM)
327.7
+0.07 (+0.02%)
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 Cap139.67B
Analysts80
Price Target448.05 (36.73%)
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)-0.69%
PT rev (3m)-19.33%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-0.32%
EPS NY rev (1m)1.32%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.25 | ||
| Fwd PE | 15.95 | ||
| P/S | 7.12 | ||
| P/FCF | 17.04 | ||
| P/OCF | 16.73 | ||
| P/B | 14.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.39 |
EPS(TTM)17.02
EY5.19%
EPS(NY)20.55
Fwd EY6.27%
FCF(TTM)19.23
FCFY5.87%
OCF(TTM)19.59
OCFY5.98%
SpS46.05
BVpS23.33
TBVpS-4.1
PEG (NY)1.35
PEG (5Y)1.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.44% | ||
| ROE | 60% | ||
| ROCE | 43.11% | ||
| ROIC | 34.5% | ||
| ROICexc | 34.5% | ||
| ROICexgc | 117.34% | ||
| 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 | 250 | ||
| Cash Conversion | 105.92% | ||
| Profit Quality | 137.39% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 9.64 |
F-Score7
WACC8.78%
ROIC/WACC3.93
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 Y14.24%
EPS Next 2Y13.33%
EPS Next 3Y13.28%
EPS Next 5Y11.51%
Revenue 1Y (TTM)10.63%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.62%
Revenue Next Year9.89%
Revenue Next 2Y9.67%
Revenue Next 3Y9.65%
Revenue Next 5Y9.39%
EBIT growth 1Y13.68%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year16.09%
EBIT Next 3Y11.14%
EBIT Next 5Y9.86%
FCF growth 1Y27.13%
FCF growth 3Y4.59%
FCF growth 5Y14.35%
OCF growth 1Y22.31%
OCF growth 3Y3.67%
OCF growth 5Y12.75%