Adobe Inc (ADBE.CA) Fundamental Analysis & Valuation
TSX:ADBE
10.59 CAD
-0.08 (-0.75%)
Last: Mar 11, 2026, 07:00 PM
This ADBE.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
ADBE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 68 industry peers in the Software industry. ADBE gets an excellent profitability rating and is at the same time showing great financial health properties. ADBE may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make ADBE suitable for value and quality investing!
1. ADBE.CA Profitability Analysis
1.1 Basic Checks
- ADBE had positive earnings in the past year.
- In the past year ADBE had a positive cash flow from operations.
- In the past 5 years ADBE has always been profitable.
- Each year in the past 5 years ADBE had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 24.17%, ADBE belongs to the top of the industry, outperforming 95.59% of the companies in the same industry.
- The Return On Equity of ADBE (61.34%) is better than 98.53% of its industry peers.
- The Return On Invested Capital of ADBE (36.51%) is better than 98.53% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ADBE is significantly above the industry average of 12.17%.
- The last Return On Invested Capital (36.51%) for ADBE 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
- With an excellent Profit Margin value of 30.00%, ADBE belongs to the best of the industry, outperforming 95.59% of the companies in the same industry.
- ADBE's Profit Margin has declined in the last couple of years.
- ADBE has a better Operating Margin (36.63%) than 98.53% of its industry peers.
- In the last couple of years the Operating Margin of ADBE has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 89.27%, ADBE belongs to the top of the industry, outperforming 92.65% of the companies in the same industry.
- In the last couple of years the Gross Margin of ADBE 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. ADBE.CA Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ADBE is creating value.
- ADBE has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for ADBE has been reduced compared to 5 years ago.
- Compared to 1 year ago, ADBE has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.04 indicates that ADBE is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.04, ADBE is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
- ADBE 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 ADBE (0.63) is better than 83.82% of its industry peers.
- ADBE has a Debt/Equity ratio of 0.53. This is a neutral value indicating ADBE is somewhat dependend on debt financing.
- ADBE has a Debt to Equity ratio (0.53) which is in line with its industry peers.
- Although ADBE's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 | 4.04 |
ROIC/WACC4.07
WACC8.98%
2.3 Liquidity
- ADBE has a Current Ratio of 1.00. This is a bad value and indicates that ADBE is not financially healthy enough and could expect problems in meeting its short term obligations.
- ADBE has a Current ratio of 1.00. This is comparable to the rest of the industry: ADBE outperforms 47.06% of its industry peers.
- ADBE has a Quick Ratio of 1.00. This is a bad value and indicates that ADBE is not financially healthy enough and could expect problems in meeting its short term obligations.
- ADBE has a Quick ratio (1.00) which is comparable to the rest of the industry.
- ADBE 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. ADBE.CA Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 13.74% over the past year.
- Measured over the past years, ADBE 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.
- 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
- ADBE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.91% yearly.
- The Revenue is expected to grow by 8.02% on average over the next years. This is quite good.
EPS Next Y14.39%
EPS Next 2Y13.62%
EPS Next 3Y12.09%
EPS Next 5Y9.91%
Revenue Next Year9.9%
Revenue Next 2Y9.5%
Revenue Next 3Y9.06%
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. ADBE.CA Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 0.37 indicates a rather cheap valuation of ADBE.
- 100.00% of the companies in the same industry are more expensive than ADBE, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 26.15. ADBE is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 0.33, the valuation of ADBE can be described as very cheap.
- ADBE's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADBE is cheaper than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.27, ADBE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.37 | ||
| Fwd PE | 0.33 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ADBE is valued cheaply inside the industry as 98.53% of the companies are valued more expensively.
- ADBE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADBE is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.32 | ||
| EV/EBITDA | 0.17 |
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.
- ADBE has an outstanding profitability rating, which may justify a higher PE ratio.
- ADBE's earnings are expected to grow with 12.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.03
PEG (5Y)0.02
EPS Next 2Y13.62%
EPS Next 3Y12.09%
5. ADBE.CA Dividend Analysis
5.1 Amount
- No dividends for ADBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ADBE.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:ADBE (3/11/2026, 7:00:00 PM)
10.59
-0.08 (-0.75%)
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 Owners86.91%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap4.32B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts75.22
Price Target16.42 (55.05%)
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 YearsN/A
Div Non Decr YearsN/A
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)-1.46%
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.02%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.37 | ||
| Fwd PE | 0.33 | ||
| P/S | 0.13 | ||
| P/FCF | 0.32 | ||
| P/OCF | 0.32 | ||
| P/B | 0.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 0.17 |
EPS(TTM)28.48
EY268.93%
EPS(NY)32.58
Fwd EY307.61%
FCF(TTM)32.85
FCFY310.22%
OCF(TTM)33.45
OCFY315.85%
SpS79.26
BVpS38.76
TBVpS-5.77
PEG (NY)0.03
PEG (5Y)0.02
Graham Number157.59
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 | 4.04 |
F-Score7
WACC8.98%
ROIC/WACC4.07
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 Y14.39%
EPS Next 2Y13.62%
EPS Next 3Y12.09%
EPS Next 5Y9.91%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y10.52%
Revenue growth 5Y13.06%
Sales Q2Q%10.49%
Revenue Next Year9.9%
Revenue Next 2Y9.5%
Revenue Next 3Y9.06%
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 / ADBE.CA FAQ
What is the ChartMill fundamental rating of Adobe Inc (ADBE.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to ADBE.CA.
What is the valuation status of Adobe Inc (ADBE.CA) stock?
ChartMill assigns a valuation rating of 9 / 10 to Adobe Inc (ADBE.CA). This can be considered as Undervalued.
What is the profitability of ADBE stock?
Adobe Inc (ADBE.CA) has a profitability rating of 9 / 10.
How financially healthy is Adobe Inc?
The financial health rating of Adobe Inc (ADBE.CA) is 7 / 10.
What is the expected EPS growth for Adobe Inc (ADBE.CA) stock?
The Earnings per Share (EPS) of Adobe Inc (ADBE.CA) is expected to grow by 14.39% in the next year.