ADOBE INC (ADB.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADB - US00724F1012 - Common Stock
300.85 EUR
-3.8 (-1.25%)
Taking everything into account, ADB scores 7 out of 10 in our fundamental rating. ADB was compared to 116 industry peers in the Software industry. Both the health and profitability get an excellent rating, making ADB a very profitable company, without any liquidiy or solvency issues. ADB is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
In the past year ADB had a positive cash flow from operations.
In the past 5 years ADB has always been profitable.
In the past 5 years ADB always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 24.17%, ADB belongs to the best of the industry, outperforming 94.83% 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 96.55% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 36.51%, ADB belongs to the top of the industry, outperforming 98.28% of the companies in the same industry.
ADB had an Average Return On Invested Capital over the past 3 years of 31.10%. This is significantly above the industry average of 12.89%.
The last Return On Invested Capital (36.51%) for ADB is above the 3 year average (31.10%), which is a sign of increasing profitability.
| 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's Profit Margin of 30.00% is amongst the best of the industry. ADB outperforms 88.79% of its industry peers.
In the last couple of years the Profit Margin of ADB has declined.
ADB has a better Operating Margin (36.63%) than 93.10% 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 86.21% of the companies in the same industry.
ADB's Gross Margin has been stable in the last couple of years.
| 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.
ADB has less shares outstanding than it did 5 years ago.
ADB has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.91 indicates that ADB is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.91, ADB belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
The Debt to FCF ratio of ADB is 0.63, which is an excellent value as it means it would take ADB, only 0.63 years of fcf income to pay off all of its debts.
ADB has a better Debt to FCF ratio (0.63) than 86.21% 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 63.79% 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 | 8.91 |
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: 68.10% 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 68.10% of its industry peers.
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 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.74% over the past year.
The Earnings Per Share has been growing by 15.87% on average over the past years. This is quite good.
The Revenue has grown by 10.53% in the past year. This is quite good.
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
Based on estimates for the next years, ADB will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.26% on average per year.
The Revenue is expected to grow by 8.36% on average over the next years. This is quite good.
EPS Next Y13.76%
EPS Next 2Y13.16%
EPS Next 3Y10.93%
EPS Next 5Y10.26%
Revenue Next Year9.32%
Revenue Next 2Y9.25%
Revenue Next 3Y8.78%
Revenue Next 5Y8.36%
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
A Price/Earnings ratio of 16.93 indicates a correct valuation of ADB.
Based on the Price/Earnings ratio, ADB is valued cheaply inside the industry as 84.48% of the companies are valued more expensively.
ADB is valuated rather cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.88, 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 82.76% of the companies listed in the same industry.
ADB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.93 | ||
| Fwd PE | 14.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADB is valued a bit cheaper than the industry average as 66.38% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ADB is valued cheaply inside the industry as 85.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.07 | ||
| EV/EBITDA | 15.42 |
4.3 Compensation for Growth
The 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.
PEG (NY)1.23
PEG (5Y)1.07
EPS Next 2Y13.16%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
No dividends for ADB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:ADB (12/23/2025, 7:00:00 PM)
300.85
-3.8 (-1.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners85.97%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap125.94B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts79.13
Price Target395.91 (31.6%)
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)-2.39%
PT rev (3m)-3.33%
EPS NQ rev (1m)3.07%
EPS NQ rev (3m)2.81%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.93 | ||
| Fwd PE | 14.88 | ||
| P/S | 6.25 | ||
| P/FCF | 15.07 | ||
| P/OCF | 14.8 | ||
| P/B | 12.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.42 |
EPS(TTM)17.77
EY5.91%
EPS(NY)20.22
Fwd EY6.72%
FCF(TTM)19.97
FCFY6.64%
OCF(TTM)20.33
OCFY6.76%
SpS48.17
BVpS23.56
TBVpS-3.5
PEG (NY)1.23
PEG (5Y)1.07
Graham Number97.05
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 | 8.91 |
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 Y13.76%
EPS Next 2Y13.16%
EPS Next 3Y10.93%
EPS Next 5Y10.26%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y10.52%
Revenue growth 5Y13.06%
Sales Q2Q%10.49%
Revenue Next Year9.32%
Revenue Next 2Y9.25%
Revenue Next 3Y8.78%
Revenue Next 5Y8.36%
EBIT growth 1Y12.47%
EBIT growth 3Y12.6%
EBIT growth 5Y14.5%
EBIT Next Year14.84%
EBIT Next 3Y10.38%
EBIT Next 5Y10.07%
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.
Can you provide the valuation status for ADOBE INC?
ChartMill assigns a valuation rating of 7 / 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 16.93 and the Price/Book (PB) ratio is 12.77.
What is the expected EPS growth for ADOBE INC (ADB.DE) stock?
The Earnings per Share (EPS) of ADOBE INC (ADB.DE) is expected to grow by 13.76% in the next year.