ADOBE INC (ADB.DE) Stock Fundamental Analysis
FRA:ADB - US00724F1012 - Common Stock
295.6 EUR
+2 (+0.68%)
ADB gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 101 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! This makes ADB very considerable 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.
Each year in the past 5 years ADB has been profitable.
In the past 5 years ADB always reported a positive cash flow from operatings.
1.2 Ratios
ADB has a Return On Assets of 24.44%. This is amongst the best in the industry. ADB outperforms 97.22% of its industry peers.
ADB's Return On Equity of 60.00% is amongst the best of the industry. ADB outperforms 92.59% 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 97.22% 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 12.69%.
The last Return On Invested Capital (34.50%) for ADB is above the 3 year average (27.26%), which is a sign of increasing profitability.
| 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 89.81% of the companies in the same industry.
ADB's Profit Margin has been stable in the last couple of years.
ADB has a Operating Margin of 36.37%. This is amongst the best in the industry. ADB outperforms 94.44% 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 87.04% 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 | 36.37% | ||
| 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
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 9.13. This indicates that ADB is financially healthy and has little risk of bankruptcy at the moment.
ADB has a better Altman-Z score (9.13) than 85.19% of its industry peers.
ADB has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
ADB's Debt to FCF ratio of 0.65 is amongst the best of the industry. ADB outperforms 85.19% 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.
Looking at the Debt to Equity ratio, with a value of 0.54, ADB is doing worse than 62.04% of the companies in the same industry.
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 | 9.13 |
ROIC/WACC3.14
WACC10.98%
2.3 Liquidity
A Current Ratio of 0.99 indicates that ADB may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.99, ADB is doing worse than 64.81% of the companies in the same industry.
A Quick Ratio of 0.99 indicates that ADB may have some problems paying its short term obligations.
The Quick ratio of ADB (0.99) is worse than 63.89% 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 | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
ADB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.16%, which is quite good.
The Earnings Per Share has been growing by 18.69% on average over the past years. This is quite good.
ADB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.63%.
The Revenue has been growing by 14.00% on average over the past years. This is quite good.
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 10.04% 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 8.89% on average per year.
EPS Next Y14.35%
EPS Next 2Y13.44%
EPS Next 3Y13.25%
EPS Next 5Y10.04%
Revenue Next Year9.93%
Revenue Next 2Y9.67%
Revenue Next 3Y9.55%
Revenue Next 5Y8.89%
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
ADB is valuated rather expensively with a Price/Earnings ratio of 17.64.
Based on the Price/Earnings ratio, ADB is valued cheaply inside the industry as 86.11% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ADB to the average of the S&P500 Index (27.06), we can say ADB is valued slightly cheaper.
ADB is valuated correctly with a Price/Forward Earnings ratio of 14.59.
Based on the Price/Forward Earnings ratio, ADB is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
ADB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.64 | ||
| Fwd PE | 14.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADB is valued a bit cheaper than the industry average as 64.81% 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 82.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.54 | ||
| EV/EBITDA | 16.21 |
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.
A more expensive valuation may be justified as ADB's earnings are expected to grow with 13.25% in the coming years.
PEG (NY)1.23
PEG (5Y)0.94
EPS Next 2Y13.44%
EPS Next 3Y13.25%
5. Dividend
5.1 Amount
No dividends for ADB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:ADB (9/5/2025, 7:00:00 PM)
295.6
+2 (+0.68%)
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 Cap125.39B
Analysts78.26
Price Target434.22 (46.89%)
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)-0.8%
PT rev (3m)-2.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.37%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.64 | ||
| Fwd PE | 14.59 | ||
| P/S | 6.49 | ||
| P/FCF | 15.54 | ||
| P/OCF | 15.25 | ||
| P/B | 12.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.21 |
EPS(TTM)16.76
EY5.67%
EPS(NY)20.27
Fwd EY6.86%
FCF(TTM)19.02
FCFY6.43%
OCF(TTM)19.38
OCFY6.56%
SpS45.55
BVpS23.07
TBVpS-4.06
PEG (NY)1.23
PEG (5Y)0.94
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 | 9.13 |
F-Score7
WACC10.98%
ROIC/WACC3.14
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 Y14.35%
EPS Next 2Y13.44%
EPS Next 3Y13.25%
EPS Next 5Y10.04%
Revenue 1Y (TTM)10.63%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.62%
Revenue Next Year9.93%
Revenue Next 2Y9.67%
Revenue Next 3Y9.55%
Revenue Next 5Y8.89%
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%