344.32 USD
+5.2 (+1.53%)
344.66 USD
+0.34 (+0.1%)
We assign a fundamental rating of 7 out of 10 to ADBE. ADBE was compared to 280 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on ADBE. With these ratings, ADBE could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year ADBE was profitable.
ADBE had a positive operating cash flow in the past year.
ADBE had positive earnings in each of the past 5 years.
ADBE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ADBE (24.19%) is better than 97.14% of its industry peers.
The Return On Equity of ADBE (59.11%) is better than 97.50% of its industry peers.
The Return On Invested Capital of ADBE (34.45%) is better than 97.86% 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 10.98%.
The last Return On Invested Capital (34.45%) for ADBE is above the 3 year average (27.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.19% | ||
| ROE | 59.11% | ||
| ROIC | 34.46% |
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
ADBE's Profit Margin of 30.01% is amongst the best of the industry. ADBE outperforms 90.71% of its industry peers.
ADBE's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 36.25%, ADBE belongs to the top of the industry, outperforming 94.64% of the companies in the same industry.
In the last couple of years the Operating Margin of ADBE has grown nicely.
The Gross Margin of ADBE (89.14%) is better than 95.71% of its industry peers.
ADBE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.25% | ||
| PM (TTM) | 30.01% | ||
| GM | 89.14% |
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), ADBE is creating value.
Compared to 1 year ago, ADBE has less shares outstanding
ADBE has less shares outstanding than it did 5 years ago.
ADBE has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.99 indicates that ADBE is not in any danger for bankruptcy at the moment.
ADBE has a better Altman-Z score (8.99) than 84.64% of its industry peers.
The Debt to FCF ratio of ADBE is 0.65, which is an excellent value as it means it would take ADBE, only 0.65 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.65, ADBE is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
ADBE has a Debt/Equity ratio of 0.53. This is a neutral value indicating ADBE is somewhat dependend on debt financing.
The Debt to Equity ratio of ADBE (0.53) is worse than 65.71% of its industry peers.
Even though the debt/equity ratio score it not favorable for ADBE, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 8.99 |
ROIC/WACC3.18
WACC10.83%
2.3 Liquidity
A Current Ratio of 1.02 indicates that ADBE should not have too much problems paying its short term obligations.
ADBE's Current ratio of 1.02 is on the low side compared to the rest of the industry. ADBE is outperformed by 73.21% of its industry peers.
ADBE has a Quick Ratio of 1.02. This is a normal value and indicates that ADBE is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ADBE (1.02) is worse than 71.79% of its industry peers.
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 | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
ADBE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.31%, which is quite good.
The Earnings Per Share has been growing by 18.69% on average over the past years. This is quite good.
ADBE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.67%.
ADBE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.00% yearly.
EPS 1Y (TTM)13.31%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%14.19%
Revenue 1Y (TTM)10.67%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.72%
3.2 Future
Based on estimates for the next years, ADBE will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.20% on average per year.
The Revenue is expected to grow by 8.95% on average over the next years. This is quite good.
EPS Next Y15.35%
EPS Next 2Y13.75%
EPS Next 3Y13.35%
EPS Next 5Y11.2%
Revenue Next Year10.46%
Revenue Next 2Y9.89%
Revenue Next 3Y9.65%
Revenue Next 5Y8.95%
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
Based on the Price/Earnings ratio of 17.00, the valuation of ADBE can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of ADBE indicates a rather cheap valuation: ADBE is cheaper than 80.36% of the companies listed in the same industry.
ADBE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.28.
With a Price/Forward Earnings ratio of 14.45, ADBE is valued correctly.
82.14% of the companies in the same industry are more expensive than ADBE, based on the Price/Forward Earnings ratio.
ADBE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 14.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADBE is valued cheaper than 84.64% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADBE indicates a rather cheap valuation: ADBE is cheaper than 86.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.02 | ||
| EV/EBITDA | 15.5 |
4.3 Compensation for Growth
ADBE's 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 13.35% in the coming years.
PEG (NY)1.11
PEG (5Y)0.91
EPS Next 2Y13.75%
EPS Next 3Y13.35%
5. Dividend
5.1 Amount
No dividends for ADBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
344.32
+5.2 (+1.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners85.97%
Inst Owner Change-1.23%
Ins Owners0.16%
Ins Owner Change1.16%
Market Cap144.13B
Revenue(TTM)23.18B
Net Income(TTM)6.96B
Analysts79.13
Price Target466.4 (35.46%)
Short Float %2.95%
Short Ratio3.27
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)0.24%
Min EPS beat(2)-0.06%
Max EPS beat(2)0.55%
EPS beat(4)3
Avg EPS beat(4)0.45%
Min EPS beat(4)-0.06%
Max EPS beat(4)1.15%
EPS beat(8)7
Avg EPS beat(8)0.5%
EPS beat(12)11
Avg EPS beat(12)0.67%
EPS beat(16)11
Avg EPS beat(16)0.26%
Revenue beat(2)0
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-0.6%
Max Revenue beat(2)-0.56%
Revenue beat(4)0
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-0.99%
Max Revenue beat(4)-0.56%
Revenue beat(8)0
Avg Revenue beat(8)-1.08%
Revenue beat(12)0
Avg Revenue beat(12)-1.21%
Revenue beat(16)0
Avg Revenue beat(16)-1.27%
PT rev (1m)-1.4%
PT rev (3m)-7.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)0%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 14.45 | ||
| P/S | 6.22 | ||
| P/FCF | 15.02 | ||
| P/OCF | 14.72 | ||
| P/B | 12.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.5 |
EPS(TTM)20.26
EY5.88%
EPS(NY)23.83
Fwd EY6.92%
FCF(TTM)22.93
FCFY6.66%
OCF(TTM)23.39
OCFY6.79%
SpS55.38
BVpS28.12
TBVpS-3.93
PEG (NY)1.11
PEG (5Y)0.91
Graham Number113.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.19% | ||
| ROE | 59.11% | ||
| ROCE | 43.05% | ||
| ROIC | 34.46% | ||
| ROICexc | 49.53% | ||
| ROICexgc | 4255.63% | ||
| OM | 36.25% | ||
| PM (TTM) | 30.01% | ||
| GM | 89.14% | ||
| FCFM | 41.41% |
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%
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 22.65% | ||
| Cap/Sales | 0.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.81% | ||
| Profit Quality | 137.98% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 8.99 |
F-Score7
WACC10.83%
ROIC/WACC3.18
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)13.31%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%14.19%
EPS Next Y15.35%
EPS Next 2Y13.75%
EPS Next 3Y13.35%
EPS Next 5Y11.2%
Revenue 1Y (TTM)10.67%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.72%
Revenue Next Year10.46%
Revenue Next 2Y9.89%
Revenue Next 3Y9.65%
Revenue Next 5Y8.95%
EBIT growth 1Y11.62%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year17.01%
EBIT Next 3Y10.74%
EBIT Next 5Y10.2%
FCF growth 1Y25.87%
FCF growth 3Y4.59%
FCF growth 5Y14.35%
OCF growth 1Y21.94%
OCF growth 3Y3.67%
OCF growth 5Y12.75%
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.
Can you provide the valuation status for ADOBE INC?
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.
What are the PE and PB ratios of ADOBE INC (ADBE) stock?
The Price/Earnings (PE) ratio for ADOBE INC (ADBE) is 17 and the Price/Book (PB) ratio is 12.25.
What is the financial health of ADOBE INC (ADBE) stock?
The financial health rating of ADOBE INC (ADBE) is 7 / 10.