ADOBE INC (ADB.DE) Stock Fundamental Analysis
FRA:ADB - Deutsche Boerse Ag - US00724F1012 - Common Stock - Currency: EUR
ADB gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 98 industry peers in the Software industry. ADB gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
Each year in the past 5 years ADB has 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 24.44%, ADB belongs to the top of the industry, outperforming 96.94% of the companies in the same industry.
ADB has a Return On Equity of 60.00%. This is amongst the best in the industry. ADB outperforms 92.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 34.50%, ADB belongs to the top of the industry, outperforming 96.94% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ADB is significantly above the industry average of 12.15%.
The 3 year average ROIC (27.26%) for ADB is below the current ROIC(34.50%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 30.39%, ADB belongs to the best of the industry, outperforming 90.82% of the companies in the same industry.
ADB's Profit Margin has been stable in the last couple of years.
ADB's Operating Margin of 36.37% is amongst the best of the industry. ADB outperforms 94.90% of its industry peers.
ADB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 89.25%, ADB belongs to the top of the industry, outperforming 87.76% 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 | 36.37% | ||
| 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
ADB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for ADB has been reduced compared to 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 8.94 indicates that ADB is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.94, ADB belongs to the top of the industry, outperforming 86.73% of the companies in the same industry.
The Debt to FCF ratio of ADB is 0.65, which is an excellent value as it means it would take ADB, only 0.65 years of fcf income to pay off all of its debts.
ADB has a better Debt to FCF ratio (0.65) than 83.67% of its industry peers.
ADB has a Debt/Equity ratio of 0.54. This is a neutral value indicating ADB is somewhat dependend on debt financing.
ADB has a Debt to Equity ratio of 0.54. This is in the lower half of the industry: ADB underperforms 65.31% 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 | 0.54 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 8.94 |
ROIC/WACC3.05
WACC11.33%
2.3 Liquidity
A Current Ratio of 0.99 indicates that ADB may have some problems paying its short term obligations.
ADB has a Current ratio of 0.99. This is in the lower half of the industry: ADB underperforms 69.39% of its industry peers.
ADB has a Quick Ratio of 0.99. This is a bad value and indicates that ADB is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.99, ADB is not doing good in the industry: 68.37% of the companies in the same industry are doing better.
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 | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.16% 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.
ADB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.63%.
ADB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.00% yearly.
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
Based on estimates for the next years, ADB will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.03% on average per year.
Based on estimates for the next years, ADB will show a quite strong growth in Revenue. The Revenue will grow by 9.28% on average per year.
EPS Next Y14.34%
EPS Next 2Y13.45%
EPS Next 3Y13.32%
EPS Next 5Y11.03%
Revenue Next Year9.93%
Revenue Next 2Y9.69%
Revenue Next 3Y9.62%
Revenue Next 5Y9.28%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 17.82, which indicates a rather expensive current valuation of ADB.
Compared to the rest of the industry, the Price/Earnings ratio of ADB indicates a rather cheap valuation: ADB is cheaper than 87.76% of the companies listed in the same industry.
ADB is valuated rather cheaply when we compare the Price/Earnings ratio to 27.11, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.74, the valuation of ADB can be described as correct.
ADB's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADB is cheaper than 85.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ADB to the average of the S&P500 Index (35.78), we can say ADB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.82 | ||
| Fwd PE | 14.74 |
4.2 Price Multiples
ADB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADB is cheaper than 65.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ADB is valued cheaper than 82.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.71 | ||
| EV/EBITDA | 15.65 |
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.
A more expensive valuation may be justified as ADB's earnings are expected to grow with 13.32% in the coming years.
PEG (NY)1.24
PEG (5Y)0.95
EPS Next 2Y13.45%
EPS Next 3Y13.32%
5. Dividend
5.1 Amount
ADB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:ADB (8/14/2025, 10:00:00 AM)
301.05
+4.75 (+1.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.81%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap127.71B
Analysts79.57
Price Target444.06 (47.5%)
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)-0.89%
PT rev (3m)-1.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.37%
EPS NY rev (1m)0%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.82 | ||
| Fwd PE | 14.74 | ||
| P/S | 6.56 | ||
| P/FCF | 15.71 | ||
| P/OCF | 15.41 | ||
| P/B | 12.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.65 |
EPS(TTM)16.89
EY5.61%
EPS(NY)20.43
Fwd EY6.79%
FCF(TTM)19.17
FCFY6.37%
OCF(TTM)19.53
OCFY6.49%
SpS45.91
BVpS23.25
TBVpS-4.09
PEG (NY)1.24
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.44% | ||
| ROE | 60% | ||
| ROCE | 43.11% | ||
| ROIC | 34.5% | ||
| ROICexc | 46.41% | ||
| ROICexgc | 918.86% | ||
| 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 | 51.06 | ||
| Cash Conversion | 105.92% | ||
| Profit Quality | 137.39% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 8.94 |
F-Score7
WACC11.33%
ROIC/WACC3.05
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 Y14.34%
EPS Next 2Y13.45%
EPS Next 3Y13.32%
EPS Next 5Y11.03%
Revenue 1Y (TTM)10.63%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.62%
Revenue Next Year9.93%
Revenue Next 2Y9.69%
Revenue Next 3Y9.62%
Revenue Next 5Y9.28%
EBIT growth 1Y13.68%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year16.1%
EBIT Next 3Y11.11%
EBIT Next 5Y10.02%
FCF growth 1Y27.13%
FCF growth 3Y4.59%
FCF growth 5Y14.35%
OCF growth 1Y22.31%
OCF growth 3Y3.67%
OCF growth 5Y12.75%