ADOBE INC (ADB.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:ADB • US00724F1012
227.1 EUR
-4.65 (-2.01%)
Last: Feb 6, 2026, 07:00 PM
Taking everything into account, ADB scores 7 out of 10 in our fundamental rating. ADB was compared to 122 industry peers in the Software industry. ADB has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ADB is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make ADB a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
- ADB had positive earnings in the past year.
- ADB had a positive operating cash flow in the past year.
- In the past 5 years ADB has always been profitable.
- ADB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ADB has a better Return On Assets (24.17%) than 93.97% of its industry peers.
- With an excellent Return On Equity value of 61.34%, ADB belongs to the best of the industry, outperforming 95.69% of the companies in the same industry.
- ADB's Return On Invested Capital of 36.51% is amongst the best of the industry. ADB outperforms 97.41% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ADB is significantly above the industry average of 13.45%.
- The 3 year average ROIC (31.10%) for ADB is below the current ROIC(36.51%), indicating increased profibility in the last year.
| 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
- ADB has a Profit Margin of 30.00%. This is amongst the best in the industry. ADB outperforms 87.93% of its industry peers.
- ADB's Profit Margin has declined in the last couple of years.
- ADB has a better Operating Margin (36.63%) than 93.97% of its industry peers.
- In the last couple of years the Operating Margin of ADB has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 89.27%, ADB belongs to the top of the industry, outperforming 87.07% of the companies in the same industry.
- 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 | 36.63% | ||
| 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
- ADB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, ADB has less shares outstanding
- The number of shares outstanding for ADB has been reduced compared to 5 years ago.
- ADB has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 7.69 indicates that ADB is not in any danger for bankruptcy at the moment.
- ADB has a Altman-Z score of 7.69. This is amongst the best in the industry. ADB outperforms 84.48% of its industry peers.
- ADB 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.
- The Debt to FCF ratio of ADB (0.63) is better than 83.62% of its industry peers.
- A Debt/Equity ratio of 0.53 indicates that ADB is somewhat dependend on debt financing.
- ADB's Debt to Equity ratio of 0.53 is on the low side compared to the rest of the industry. ADB is outperformed by 64.66% of its industry peers.
- Although ADB does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 7.69 |
ROIC/WACC3.34
WACC10.93%
2.3 Liquidity
- A Current Ratio of 1.00 indicates that ADB may have some problems paying its short term obligations.
- ADB's Current ratio of 1.00 is on the low side compared to the rest of the industry. ADB is outperformed by 69.83% of its industry peers.
- A Quick Ratio of 1.00 indicates that ADB may have some problems paying its short term obligations.
- With a Quick ratio value of 1.00, ADB is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
- 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 | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- ADB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.74%, 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 15.87% yearly.
- Looking at the last year, ADB shows a quite strong growth in Revenue. The Revenue has grown by 10.53% in the last year.
- 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
- The Earnings Per Share is expected to grow by 9.91% on average over the next years. This is quite good.
- The Revenue is expected to grow by 8.02% on average over the next years. This is quite good.
EPS Next Y14.37%
EPS Next 2Y13.61%
EPS Next 3Y12.14%
EPS Next 5Y9.91%
Revenue Next Year9.89%
Revenue Next 2Y9.49%
Revenue Next 3Y9.04%
Revenue Next 5Y8.02%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 12.79, ADB is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of ADB indicates a rather cheap valuation: ADB is cheaper than 89.66% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of ADB to the average of the S&P500 Index (27.93), we can say ADB is valued rather cheaply.
- ADB is valuated reasonably with a Price/Forward Earnings ratio of 11.18.
- ADB's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADB is cheaper than 89.66% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.77, ADB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 11.18 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADB indicates a somewhat cheap valuation: ADB is cheaper than 74.14% of the companies listed in the same industry.
- 89.66% of the companies in the same industry are more expensive than ADB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.38 | ||
| EV/EBITDA | 11.61 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of ADB may justify a higher PE ratio.
- ADB's earnings are expected to grow with 12.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)0.81
EPS Next 2Y13.61%
EPS Next 3Y12.14%
5. Dividend
5.1 Amount
- ADB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:ADB (2/6/2026, 7:00:00 PM)
227.1
-4.65 (-2.01%)
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 Cap95.06B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts78.7
Price Target368.04 (62.06%)
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)-3.99%
PT rev (3m)-9.78%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)3.32%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 11.18 | ||
| P/S | 4.72 | ||
| P/FCF | 11.38 | ||
| P/OCF | 11.18 | ||
| P/B | 9.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.61 |
EPS(TTM)17.76
EY7.82%
EPS(NY)20.32
Fwd EY8.95%
FCF(TTM)19.96
FCFY8.79%
OCF(TTM)20.32
OCFY8.95%
SpS48.14
BVpS23.54
TBVpS-3.5
PEG (NY)0.89
PEG (5Y)0.81
Graham Number96.99
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 | 7.69 |
F-Score7
WACC10.93%
ROIC/WACC3.34
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 Y14.37%
EPS Next 2Y13.61%
EPS Next 3Y12.14%
EPS Next 5Y9.91%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y10.52%
Revenue growth 5Y13.06%
Sales Q2Q%10.49%
Revenue Next Year9.89%
Revenue Next 2Y9.49%
Revenue Next 3Y9.04%
Revenue Next 5Y8.02%
EBIT growth 1Y12.47%
EBIT growth 3Y12.6%
EBIT growth 5Y14.5%
EBIT Next Year13.1%
EBIT Next 3Y8.83%
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 / ADB.DE FAQ
Can you provide the ChartMill fundamental rating for ADOBE INC?
ChartMill assigns a fundamental rating of 7 / 10 to ADB.DE.
What is the valuation status for ADB stock?
ChartMill assigns a valuation rating of 8 / 10 to ADOBE INC (ADB.DE). This can be considered as Undervalued.
Can you provide the profitability details for ADOBE INC?
ADOBE INC (ADB.DE) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for ADB stock?
The Price/Earnings (PE) ratio for ADOBE INC (ADB.DE) is 12.79 and the Price/Book (PB) ratio is 9.65.
How financially healthy is ADOBE INC?
The financial health rating of ADOBE INC (ADB.DE) is 7 / 10.