335.99 USD
+4.43 (+1.34%)
335.89 USD
-0.1 (-0.03%)
We assign a fundamental rating of 7 out of 10 to ADBE. ADBE was compared to 276 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 may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, ADBE could be worth investigating further 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.
In the past 5 years ADBE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ADBE (24.17%) is better than 97.46% of its industry peers.
The Return On Equity of ADBE (61.34%) is better than 97.46% of its industry peers.
ADBE's Return On Invested Capital of 36.51% is amongst the best of the industry. ADBE outperforms 97.83% of its industry peers.
ADBE had an Average Return On Invested Capital over the past 3 years of 31.10%. This is significantly above the industry average of 10.78%.
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
Looking at the Profit Margin, with a value of 30.00%, ADBE belongs to the top of the industry, outperforming 89.49% of the companies in the same industry.
ADBE's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 36.63%, ADBE belongs to the best 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
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
Compared to 5 years ago, ADBE has less shares outstanding
Compared to 1 year ago, ADBE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.59 indicates that ADBE is not in any danger for bankruptcy at the moment.
ADBE has a Altman-Z score of 8.59. This is amongst the best in the industry. ADBE outperforms 86.23% of its industry peers.
The Debt to FCF ratio of ADBE is 0.63, which is an excellent value as it means it would take ADBE, only 0.63 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ADBE (0.63) is better than 77.90% 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's Debt to Equity ratio of 0.53 is on the low side compared to the rest of the industry. ADBE is outperformed by 66.67% 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 | 8.59 |
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 Current ratio of 1.00. This is in the lower half of the industry: ADBE underperforms 75.00% of its industry peers.
A Quick Ratio of 1.00 indicates that ADBE may have some problems paying its short term obligations.
The Quick ratio of ADBE (1.00) is worse than 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
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.
ADBE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.53%.
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 10.26% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.36% on average over the next years. This is quite good.
EPS Next Y14.38%
EPS Next 2Y13.69%
EPS Next 3Y12.98%
EPS Next 5Y10.26%
Revenue Next Year9.9%
Revenue Next 2Y9.55%
Revenue Next 3Y9.43%
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.
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
The Price/Earnings ratio is 16.04, which indicates a correct valuation of ADBE.
Based on the Price/Earnings ratio, ADBE is valued cheaper than 80.07% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.17, ADBE is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.02, the valuation of ADBE can be described as correct.
ADBE's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADBE is cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.79. ADBE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.04 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADBE indicates a rather cheap valuation: ADBE is cheaper than 84.42% of the companies listed in the same industry.
ADBE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADBE is cheaper than 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.28 | ||
| EV/EBITDA | 14.41 |
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.
ADBE's earnings are expected to grow with 12.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.12
PEG (5Y)1.01
EPS Next 2Y13.69%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
No dividends for ADBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
335.99
+4.43 (+1.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.02%
Inst Owner Change0%
Ins Owners0.16%
Ins Owner Change0.99%
Market Cap140.65B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts79.13
Price Target449.23 (33.7%)
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)-4.72%
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 | 16.04 | ||
| Fwd PE | 14.02 | ||
| P/S | 5.92 | ||
| P/FCF | 14.28 | ||
| P/OCF | 14.02 | ||
| P/B | 12.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.41 |
EPS(TTM)20.95
EY6.24%
EPS(NY)23.96
Fwd EY7.13%
FCF(TTM)23.54
FCFY7%
OCF(TTM)23.96
OCFY7.13%
SpS56.78
BVpS27.77
TBVpS-4.13
PEG (NY)1.12
PEG (5Y)1.01
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 | 8.59 |
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 Y14.38%
EPS Next 2Y13.69%
EPS Next 3Y12.98%
EPS Next 5Y10.26%
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 5Y8.36%
EBIT growth 1Y12.47%
EBIT growth 3Y12.6%
EBIT growth 5Y14.5%
EBIT Next Year13.32%
EBIT Next 3Y10.22%
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 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.