304.09 USD
-0.35 (-0.11%)
304.2 USD
+0.11 (+0.04%)
Overall ADBE gets a fundamental rating of 7 out of 10. We evaluated ADBE against 276 industry peers in the Software industry. ADBE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ADBE is valued quite cheap, while showing a decent growth score. This is a good 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.
- ADBE had a positive operating cash flow in the past year.
- Each year in the past 5 years ADBE has been profitable.
- Each year in the past 5 years ADBE had a positive operating cash flow.
1.2 Ratios
- ADBE's Return On Assets of 24.17% is amongst the best of the industry. ADBE outperforms 97.46% 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 97.46% of the companies in the same industry.
- ADBE's Return On Invested Capital of 36.51% is amongst the best of the industry. ADBE outperforms 97.83% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ADBE is significantly above the industry average of 10.78%.
- 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
- Looking at the Profit Margin, with a value of 30.00%, ADBE belongs to the top of the industry, outperforming 89.86% of the companies in the same industry.
- 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 94.57% 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.
- With an excellent Gross Margin value of 89.27%, ADBE belongs to the best of the industry, outperforming 96.01% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ADBE is creating value.
- The number of shares outstanding for ADBE has been reduced compared to 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 8.21 indicates that ADBE is not in any danger for bankruptcy at the moment.
- ADBE's Altman-Z score of 8.21 is amongst the best of the industry. ADBE outperforms 85.14% 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 77.90% of its industry peers.
- A Debt/Equity ratio of 0.53 indicates that ADBE is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.53, ADBE is doing worse than 66.67% of the companies in the same industry.
- 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 | 8.21 |
ROIC/WACC3.34
WACC10.92%
2.3 Liquidity
- A Current Ratio of 1.00 indicates that ADBE may have some problems paying its short term obligations.
- With a Current ratio value of 1.00, ADBE is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
- 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's Quick ratio of 1.00 is on the low side compared to the rest of the industry. ADBE is outperformed by 73.91% of its industry peers.
- 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
- ADBE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.74%, which is quite good.
- 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.
- Looking at the last year, ADBE shows a quite strong growth in Revenue. The Revenue has grown by 10.53% in the last year.
- Measured over the past years, ADBE shows a quite strong growth in Revenue. The Revenue has been growing by 13.06% on average per year.
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 9.91% 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 8.02% on average per year.
EPS Next Y14.38%
EPS Next 2Y13.69%
EPS Next 3Y12.98%
EPS Next 5Y9.91%
Revenue Next Year9.9%
Revenue Next 2Y9.55%
Revenue Next 3Y9.43%
Revenue Next 5Y8.02%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- With a Price/Earnings ratio of 14.52, ADBE is valued correctly.
- Based on the Price/Earnings ratio, ADBE is valued cheaply inside the industry as 82.25% of the companies are valued more expensively.
- ADBE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 12.69, which indicates a correct valuation of ADBE.
- Based on the Price/Forward Earnings ratio, ADBE is valued cheaply inside the industry as 84.06% of the companies are valued more expensively.
- ADBE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 12.69 |
4.2 Price Multiples
- ADBE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ADBE is cheaper than 84.42% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ADBE is valued cheaply inside the industry as 88.04% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.92 | ||
| EV/EBITDA | 13.22 |
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.
- A more expensive valuation may be justified as ADBE's earnings are expected to grow with 12.98% in the coming years.
PEG (NY)1.01
PEG (5Y)0.91
EPS Next 2Y13.69%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
- No dividends for ADBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
304.09
-0.35 (-0.11%)
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 Owners86.02%
Inst Owner Change-0.01%
Ins Owners0.16%
Ins Owner Change0.99%
Market Cap127.29B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts78.7
Price Target449.23 (47.73%)
Short Float %2.78%
Short Ratio2.94
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)-3.68%
PT rev (3m)-5.03%
EPS NQ rev (1m)3.51%
EPS NQ rev (3m)3.29%
EPS NY rev (1m)0.55%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 12.69 | ||
| P/S | 5.36 | ||
| P/FCF | 12.92 | ||
| P/OCF | 12.69 | ||
| P/B | 10.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.22 |
EPS(TTM)20.95
EY6.89%
EPS(NY)23.96
Fwd EY7.88%
FCF(TTM)23.54
FCFY7.74%
OCF(TTM)23.96
OCFY7.88%
SpS56.78
BVpS27.77
TBVpS-4.13
PEG (NY)1.01
PEG (5Y)0.91
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 | 8.21 |
F-Score7
WACC10.92%
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 Y14.38%
EPS Next 2Y13.69%
EPS Next 3Y12.98%
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 2Y9.55%
Revenue Next 3Y9.43%
Revenue Next 5Y8.02%
EBIT growth 1Y12.47%
EBIT growth 3Y12.6%
EBIT growth 5Y14.5%
EBIT Next Year13.32%
EBIT Next 3Y10.22%
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 FAQ
What is the ChartMill fundamental rating of ADOBE INC (ADBE) stock?
ChartMill assigns a fundamental rating of 7 / 10 to ADBE.
What is the valuation status of ADOBE INC (ADBE) stock?
ChartMill assigns a valuation rating of 7 / 10 to ADOBE INC (ADBE). This can be considered as Undervalued.
What is the profitability of ADBE stock?
ADOBE INC (ADBE) has a profitability rating of 9 / 10.
How financially healthy is ADOBE INC?
The financial health rating of ADOBE INC (ADBE) is 7 / 10.
What is the expected EPS growth for ADOBE INC (ADBE) stock?
The Earnings per Share (EPS) of ADOBE INC (ADBE) is expected to grow by 14.38% in the next year.