ADOBE INC (ADBE)
US00724F1012 - Common Stock
Overall ADBE gets a fundamental rating of 7 out of 10. We evaluated ADBE against 275 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 has a decent growth rate and is not valued too expensively. With these ratings, ADBE could be worth investigating further for 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.
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
Looking at the Return On Assets, with a value of 16.70%, ADBE belongs to the top of the industry, outperforming 96.73% of the companies in the same industry.
With an excellent Return On Equity value of 31.05%, ADBE belongs to the best of the industry, outperforming 94.91% of the companies in the same industry.
ADBE's Return On Invested Capital of 28.84% is amongst the best of the industry. ADBE outperforms 98.55% of its industry peers.
ADBE had an Average Return On Invested Capital over the past 3 years of 25.17%. This is significantly above the industry average of 10.17%.
The last Return On Invested Capital (28.84%) for ADBE is above the 3 year average (25.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.7% | ||
| ROE | 31.05% | ||
| ROIC | 28.84% |
ROA(3y)17.81%
ROA(5y)17.86%
ROE(3y)33.1%
ROE(5y)33.4%
ROIC(3y)25.17%
ROIC(5y)23.19%
1.3 Margins
ADBE's Profit Margin of 24.08% is amongst the best of the industry. ADBE outperforms 93.45% of its industry peers.
In the last couple of years the Profit Margin of ADBE has remained more or less at the same level.
ADBE has a Operating Margin of 34.97%. This is amongst the best in the industry. ADBE outperforms 97.45% of its industry peers.
In the last couple of years the Operating Margin of ADBE has grown nicely.
ADBE has a better Gross Margin (88.08%) than 94.91% of its industry peers.
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 | 34.97% | ||
| PM (TTM) | 24.08% | ||
| GM | 88.08% |
OM growth 3Y1.15%
OM growth 5Y2.49%
PM growth 3Y-11.88%
PM growth 5Y-0.51%
GM growth 3Y0.48%
GM growth 5Y0.25%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
ADBE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 12.85 indicates that ADBE is not in any danger for bankruptcy at the moment.
ADBE has a Altman-Z score of 12.85. This is amongst the best in the industry. ADBE outperforms 92.36% of its industry peers.
ADBE has a debt to FCF ratio of 0.56. This is a very positive value and a sign of high solvency as it would only need 0.56 years to pay back of all of its debts.
ADBE's Debt to FCF ratio of 0.56 is amongst the best of the industry. ADBE outperforms 80.36% of its industry peers.
ADBE has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.14, ADBE is in line with its industry, outperforming 49.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.56 | ||
| Altman-Z | 12.85 |
ROIC/WACC2.93
WACC9.85%
2.3 Liquidity
ADBE has a Current Ratio of 1.05. This is a normal value and indicates that ADBE is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.05, ADBE is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
ADBE has a Quick Ratio of 1.05. This is a normal value and indicates that ADBE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.05, ADBE is doing worse than 74.91% 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 | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.37% 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 18.63% on average per year.
ADBE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.76%.
ADBE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.54% yearly.
EPS 1Y (TTM)18.37%
EPS 3Y17.01%
EPS 5Y18.63%
EPS growth Q2Q17.89%
Revenue 1Y (TTM)10.76%
Revenue growth 3Y14.68%
Revenue growth 5Y16.54%
Revenue growth Q2Q11.32%
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 14.03% on average per year.
The Revenue is expected to grow by 11.90% on average over the next years. This is quite good.
EPS Next Y14.45%
EPS Next 2Y13.71%
EPS Next 3Y14.1%
EPS Next 5Y14.03%
Revenue Next Year10.76%
Revenue Next 2Y11.14%
Revenue Next 3Y11.32%
Revenue Next 5Y11.9%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.33 indicates a quite expensive valuation of ADBE.
ADBE's Price/Earnings ratio is a bit cheaper when compared to the industry. ADBE is cheaper than 77.45% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.83. ADBE is around the same levels.
ADBE is valuated rather expensively with a Price/Forward Earnings ratio of 22.83.
78.91% of the companies in the same industry are more expensive than ADBE, based on the Price/Forward Earnings ratio.
ADBE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.33 | ||
| Fwd PE | 22.83 |
4.2 Price Multiples
ADBE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADBE is cheaper than 79.64% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADBE indicates a somewhat cheap valuation: ADBE is cheaper than 73.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.1 | ||
| EV/EBITDA | 26.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ADBE does not grow enough to justify the current Price/Earnings ratio.
ADBE has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ADBE's earnings are expected to grow with 14.10% in the coming years.
PEG (NY)1.96
PEG (5Y)1.52
EPS Next 2Y13.71%
EPS Next 3Y14.1%
5. Dividend
5.1 Amount
No dividends for ADBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ADOBE INC
NASDAQ:ADBE (4/17/2024, 7:00:00 PM)
Premarket: 476 +1.55 (+0.33%)474.45
-1.77 (-0.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap214.71B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.33 | ||
| Fwd PE | 22.83 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.96
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.7% | ||
| ROE | 31.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34.97% | ||
| PM (TTM) | 24.08% | ||
| GM | 88.08% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)18.37%
EPS 3Y17.01%
EPS 5Y
EPS growth Q2Q
EPS Next Y14.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.76%
Revenue growth 3Y14.68%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y