355.86 USD
+0.05 (+0.01%)
355.83 USD
-0.03 (-0.01%)
Overall ADBE gets a fundamental rating of 7 out of 10. We evaluated ADBE against 281 industry peers in the Software industry. Both the health and profitability get an excellent rating, making ADBE a very profitable company, without any liquidiy or solvency issues. ADBE scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make ADBE a good candidate for value and quality investing.
1. Profitability
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
ADBE has a Return On Assets of 24.17%. This is amongst the best in the industry. ADBE outperforms 97.15% of its industry peers.
Looking at the Return On Equity, with a value of 61.34%, ADBE belongs to the top of the industry, outperforming 97.51% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 36.51%, ADBE belongs to the top of the industry, outperforming 97.86% of the companies in the same industry.
ADBE had an Average Return On Invested Capital over the past 3 years of 31.10%. This is significantly above the industry average of 10.73%.
The 3 year average ROIC (31.10%) for ADBE 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
ADBE has a Profit Margin of 30.00%. This is amongst the best in the industry. ADBE outperforms 90.75% of its industry peers.
In the last couple of years the Profit Margin of ADBE has declined.
Looking at the Operating Margin, with a value of 36.63%, ADBE belongs to the top of the industry, outperforming 94.66% of the companies in the same industry.
In the last couple of years the Operating Margin of ADBE has remained more or less at the same level.
ADBE has a better Gross Margin (89.27%) than 96.09% of its industry peers.
ADBE'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
ADBE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ADBE has less shares outstanding
The number of shares outstanding for ADBE has been reduced compared to 5 years ago.
The debt/assets ratio for ADBE is higher compared to a year ago.
2.2 Solvency
ADBE has an Altman-Z score of 8.93. This indicates that ADBE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ADBE (8.93) is better than 85.77% of its industry peers.
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.
ADBE has a Debt to FCF ratio of 0.63. This is in the better half of the industry: ADBE outperforms 77.94% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that ADBE is somewhat dependend on debt financing.
The Debt to Equity ratio of ADBE (0.53) is worse than 66.19% of its industry peers.
Although ADBE 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 | 0.53 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 8.93 |
ROIC/WACC3.36
WACC10.87%
2.3 Liquidity
A Current Ratio of 1.00 indicates that ADBE may have some problems paying its short term obligations.
ADBE has a worse Current ratio (1.00) than 74.38% of its industry peers.
A Quick Ratio of 1.00 indicates that ADBE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.00, ADBE is doing worse than 73.31% of the companies in the same industry.
The current and quick ratio evaluation for ADBE 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, 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
The Earnings Per Share is expected to grow by 10.26% on average over the next years. This is quite good.
Based on estimates for the next years, ADBE will show a quite strong growth in Revenue. The Revenue will grow by 8.36% on average per year.
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
ADBE is valuated correctly with a Price/Earnings ratio of 16.99.
Based on the Price/Earnings ratio, ADBE is valued a bit cheaper than the industry average as 78.65% of the companies are valued more expensively.
ADBE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.38, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.93, ADBE is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADBE indicates a rather cheap valuation: ADBE is cheaper than 81.14% of the companies listed in the same industry.
ADBE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.99 | ||
| Fwd PE | 14.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADBE is valued cheaply inside the industry as 84.34% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ADBE is valued cheaply inside the industry as 86.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.12 | ||
| EV/EBITDA | 15.48 |
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 ADBE 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 ADBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
355.86
+0.05 (+0.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners85.97%
Inst Owner Change-1.24%
Ins Owners0.16%
Ins Owner Change1.05%
Market Cap148.96B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts79.13
Price Target466.4 (31.06%)
Short Float %2.94%
Short Ratio3.08
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)-1.4%
PT rev (3m)-2.69%
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 | 16.99 | ||
| Fwd PE | 14.93 | ||
| P/S | 6.27 | ||
| P/FCF | 15.12 | ||
| P/OCF | 14.85 | ||
| P/B | 12.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.48 |
EPS(TTM)20.95
EY5.89%
EPS(NY)23.83
Fwd EY6.7%
FCF(TTM)23.54
FCFY6.61%
OCF(TTM)23.96
OCFY6.73%
SpS56.78
BVpS27.77
TBVpS-4.13
PEG (NY)1.23
PEG (5Y)1.07
Graham Number114.4
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 | 8.93 |
F-Score7
WACC10.87%
ROIC/WACC3.36
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 / ADBE FAQ
What is the ChartMill fundamental rating of ADOBE INC (ADBE) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ADBE.
Can you provide the valuation status for ADOBE INC?
ChartMill assigns a valuation rating of 6 / 10 to ADOBE INC (ADBE). This can be considered as Fairly Valued.
What is the profitability of ADBE stock?
ADOBE INC (ADBE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of ADOBE INC (ADBE) stock?
The Price/Earnings (PE) ratio for ADOBE INC (ADBE) is 16.99 and the Price/Book (PB) ratio is 12.82.
What is the financial health of ADOBE INC (ADBE) stock?
The financial health rating of ADOBE INC (ADBE) is 6 / 10.