ADOBE INC (ADB.DE) Stock Fundamental Analysis
FRA:ADB - Deutsche Boerse Ag - US00724F1012 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to ADB. ADB was compared to 97 industry peers in the Software industry. ADB scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ADB is not valued too expensively and it also shows a decent growth rate. These ratings would make ADB suitable for 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.
In the past 5 years ADB has always been profitable.
Each year in the past 5 years ADB had a positive operating cash flow.
1.2 Ratios
ADB has a better Return On Assets (22.54%) than 97.94% of its industry peers.
ADB's Return On Equity of 51.55% is amongst the best of the industry. ADB outperforms 95.88% of its industry peers.
ADB has a better Return On Invested Capital (30.78%) than 97.94% of its industry peers.
ADB 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 ADB 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
Looking at the Profit Margin, with a value of 30.63%, ADB belongs to the top of the industry, outperforming 91.75% of the companies in the same industry.
ADB's Profit Margin has been stable in the last couple of years.
The Operating Margin of ADB (36.29%) is better than 92.78% of its industry peers.
In the last couple of years the Operating Margin of ADB has grown nicely.
ADB's Gross Margin of 89.15% is amongst the best of the industry. ADB outperforms 87.63% of its industry peers.
In the last couple of years the Gross Margin of ADB 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ADB is creating value.
ADB has less shares outstanding than it did 1 year ago.
ADB has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ADB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.43 indicates that ADB is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.43, ADB belongs to the top of the industry, outperforming 89.69% of the companies in the same industry.
ADB 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.
With an excellent Debt to FCF ratio value of 0.67, ADB belongs to the best of the industry, outperforming 83.51% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that ADB is not too dependend on debt financing.
The Debt to Equity ratio of ADB (0.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 9.43 |
ROIC/WACC2.91
WACC10.56%
2.3 Liquidity
A Current Ratio of 1.18 indicates that ADB should not have too much problems paying its short term obligations.
ADB's Current ratio of 1.18 is in line compared to the rest of the industry. ADB outperforms 45.36% of its industry peers.
A Quick Ratio of 1.18 indicates that ADB should not have too much problems paying its short term obligations.
The Quick ratio of ADB (1.18) is comparable to the rest of the industry.
ADB 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 | 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.
Measured over the past years, ADB 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, ADB shows a quite strong growth in Revenue. The Revenue has grown by 10.54% in the last year.
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)13.55%
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
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, ADB 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
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.
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
Based on the Price/Earnings ratio of 20.30, the valuation of ADB can be described as rather expensive.
Based on the Price/Earnings ratio, ADB is valued cheaper than 82.47% of the companies in the same industry.
ADB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.12.
With a Price/Forward Earnings ratio of 16.55, 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 80.41% of the companies listed in the same industry.
ADB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.3 | ||
| Fwd PE | 16.55 |
4.2 Price Multiples
ADB's Enterprise Value to EBITDA ratio is in line with the industry average.
ADB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADB is cheaper than 82.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.91 | ||
| 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.
The excellent profitability rating of ADB may justify a higher PE ratio.
ADB's earnings are expected to grow with 12.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.59
PEG (5Y)1.09
EPS Next 2Y12.56%
EPS Next 3Y12.52%
5. Dividend
5.1 Amount
No dividends for ADB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:ADB (5/9/2025, 3:30:46 PM)
341.9
-0.45 (-0.13%)
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 Cap145.72B
Analysts80
Price Target448.01 (31.04%)
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)-8.61%
PT rev (3m)-21.44%
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 | 20.3 | ||
| Fwd PE | 16.55 | ||
| P/S | 7.47 | ||
| P/FCF | 17.91 | ||
| P/OCF | 17.58 | ||
| P/B | 12.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.39 |
EPS(TTM)16.84
EY4.93%
EPS(NY)20.66
Fwd EY6.04%
FCF(TTM)19.09
FCFY5.58%
OCF(TTM)19.45
OCFY5.69%
SpS45.77
BVpS27.2
TBVpS-0.81
PEG (NY)1.59
PEG (5Y)1.09
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 | 9.43 |
F-Score8
WACC10.56%
ROIC/WACC2.91
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%