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
Overall ADB gets a fundamental rating of 7 out of 10. We evaluated ADB against 115 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 may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, ADB could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year ADB was profitable.
- 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
- Looking at the Return On Assets, with a value of 24.17%, ADB belongs to the top of the industry, outperforming 93.91% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 61.34%, ADB belongs to the top of the industry, outperforming 95.65% 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 97.39% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ADB is significantly above the industry average of 13.06%.
- 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
- Looking at the Profit Margin, with a value of 30.00%, ADB belongs to the top of the industry, outperforming 89.57% of the companies in the same industry.
- ADB's Profit Margin has declined in the last couple of years.
- The Operating Margin of ADB (36.63%) is better than 93.91% of its industry peers.
- ADB's Operating Margin has been stable in the last couple of years.
- With an excellent Gross Margin value of 89.27%, ADB belongs to the best of the industry, outperforming 86.96% 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
- 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.
- Compared to 5 years ago, ADB has less shares outstanding
- The debt/assets ratio for ADB is higher compared to a year ago.
2.2 Solvency
- ADB has an Altman-Z score of 7.77. This indicates that ADB is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 7.77, ADB belongs to the best of the industry, outperforming 85.22% of the companies in the same industry.
- 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.
- ADB has a better Debt to FCF ratio (0.63) than 84.35% of its industry peers.
- ADB has a Debt/Equity ratio of 0.53. This is a neutral value indicating 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 64.35% 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 | 0.53 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 7.77 |
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.
- With a Current ratio value of 1.00, ADB is not doing good in the industry: 69.57% of the companies in the same industry are doing better.
- ADB has a Quick Ratio of 1.00. This is a bad value and indicates that ADB is not financially healthy enough and could expect problems in meeting its short term obligations.
- ADB has a worse Quick ratio (1.00) than 68.70% of its industry peers.
- 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
- The Earnings Per Share has grown by an nice 13.74% 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 15.87% on average per year.
- The Revenue has grown by 10.53% in the past year. This is quite good.
- ADB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.06% yearly.
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
- The Price/Earnings ratio is 12.79, which indicates a correct valuation of ADB.
- Based on the Price/Earnings ratio, ADB is valued cheaply inside the industry as 87.83% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.92. ADB is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 11.18, which indicates a very decent valuation of ADB.
- 89.57% of the companies in the same industry are more expensive than ADB, based on the Price/Forward Earnings ratio.
- ADB is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 11.18 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ADB is valued a bit cheaper than the industry average as 73.04% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADB indicates a rather cheap valuation: ADB is cheaper than 88.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.38 | ||
| EV/EBITDA | 11.85 |
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.
- A more expensive valuation may be justified as ADB's earnings are expected to grow with 12.14% in the coming years.
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)-1.95%
PT rev (3m)-7.86%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)3.32%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.61%
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 | 11.85 |
EPS(TTM)17.76
EY7.82%
EPS(NY)20.31
Fwd EY8.94%
FCF(TTM)19.95
FCFY8.78%
OCF(TTM)20.31
OCFY8.94%
SpS48.13
BVpS23.53
TBVpS-3.5
PEG (NY)0.89
PEG (5Y)0.81
Graham Number96.98
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 | 7.77 |
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.