ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
BIT:1ADBE - Euronext Milan - US00724F1012 - Common Stock - Currency: EUR
1ADBE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 101 industry peers in the Software industry. 1ADBE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1ADBE has a decent growth rate and is not valued too expensively. These ratings would make 1ADBE suitable for quality investing!
1. Profitability
1.1 Basic Checks
1ADBE had positive earnings in the past year.
1ADBE had a positive operating cash flow in the past year.
Each year in the past 5 years 1ADBE has been profitable.
In the past 5 years 1ADBE always reported a positive cash flow from operatings.
1.2 Ratios
1ADBE has a Return On Assets of 18.39%. This is amongst the best in the industry. 1ADBE outperforms 96.51% of its industry peers.
With an excellent Return On Equity value of 39.42%, 1ADBE belongs to the best of the industry, outperforming 90.70% of the companies in the same industry.
1ADBE has a better Return On Invested Capital (31.43%) than 97.67% of its industry peers.
1ADBE had an Average Return On Invested Capital over the past 3 years of 27.26%. This is significantly above the industry average of 11.53%.
The last Return On Invested Capital (31.43%) for 1ADBE is above the 3 year average (27.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.39% | ||
| ROE | 39.42% | ||
| ROIC | 31.43% |
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
1ADBE has a Profit Margin of 25.85%. This is amongst the best in the industry. 1ADBE outperforms 89.53% of its industry peers.
1ADBE's Profit Margin has been stable in the last couple of years.
1ADBE's Operating Margin of 36.00% is amongst the best of the industry. 1ADBE outperforms 95.35% of its industry peers.
1ADBE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 89.04%, 1ADBE belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
In the last couple of years the Gross Margin of 1ADBE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36% | ||
| PM (TTM) | 25.85% | ||
| GM | 89.04% |
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), 1ADBE is creating value.
Compared to 1 year ago, 1ADBE has less shares outstanding
1ADBE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1ADBE is higher compared to a year ago.
2.2 Solvency
1ADBE has an Altman-Z score of 10.83. This indicates that 1ADBE is financially healthy and has little risk of bankruptcy at the moment.
1ADBE has a better Altman-Z score (10.83) than 91.86% of its industry peers.
1ADBE has a debt to FCF ratio of 0.71. This is a very positive value and a sign of high solvency as it would only need 0.71 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.71, 1ADBE is in the better half of the industry, outperforming 79.07% of the companies in the same industry.
1ADBE has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
1ADBE has a Debt to Equity ratio (0.29) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.71 | ||
| Altman-Z | 10.83 |
ROIC/WACC2.29
WACC13.73%
2.3 Liquidity
1ADBE has a Current Ratio of 1.07. This is a normal value and indicates that 1ADBE is financially healthy and should not expect problems in meeting its short term obligations.
1ADBE has a worse Current ratio (1.07) than 69.77% of its industry peers.
1ADBE has a Quick Ratio of 1.07. This is a normal value and indicates that 1ADBE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.07, 1ADBE is doing worse than 65.12% of the companies in the same industry.
1ADBE 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 | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
1ADBE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.62%, which is quite good.
Measured over the past years, 1ADBE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.69% on average per year.
1ADBE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.80%.
The Revenue has been growing by 14.00% on average over the past years. This is quite good.
EPS 1Y (TTM)14.62%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%12.65%
Revenue 1Y (TTM)10.8%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%11.05%
3.2 Future
The Earnings Per Share is expected to grow by 11.62% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.40% on average over the next years. This is quite good.
EPS Next Y13%
EPS Next 2Y13%
EPS Next 3Y12.51%
EPS Next 5Y11.62%
Revenue Next Year9.59%
Revenue Next 2Y9.87%
Revenue Next 3Y9.67%
Revenue Next 5Y9.4%
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
Based on the Price/Earnings ratio of 23.51, the valuation of 1ADBE can be described as rather expensive.
Based on the Price/Earnings ratio, 1ADBE is valued a bit cheaper than 75.58% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, 1ADBE is valued at the same level.
A Price/Forward Earnings ratio of 20.80 indicates a rather expensive valuation of 1ADBE.
68.60% of the companies in the same industry are more expensive than 1ADBE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, 1ADBE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.51 | ||
| Fwd PE | 20.8 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1ADBE.
1ADBE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1ADBE is cheaper than 70.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.94 | ||
| EV/EBITDA | 23.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1ADBE does not grow enough to justify the current Price/Earnings ratio.
1ADBE has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1ADBE's earnings are expected to grow with 12.51% in the coming years.
PEG (NY)1.81
PEG (5Y)1.26
EPS Next 2Y13%
EPS Next 3Y12.51%
5. Dividend
5.1 Amount
1ADBE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1ADBE (3/4/2025, 7:00:00 PM)
413.25
-33 (-7.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners85.27%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap179.89B
Analysts80.44
Price Target566.95 (37.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.91%
Min EPS beat(2)0.66%
Max EPS beat(2)1.15%
EPS beat(4)4
Avg EPS beat(4)0.54%
Min EPS beat(4)0.06%
Max EPS beat(4)1.15%
EPS beat(8)8
Avg EPS beat(8)0.82%
EPS beat(12)9
Avg EPS beat(12)0.45%
EPS beat(16)12
Avg EPS beat(16)1.31%
Revenue beat(2)0
Avg Revenue beat(2)-1.01%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)-0.78%
Revenue beat(4)0
Avg Revenue beat(4)-1.22%
Min Revenue beat(4)-1.65%
Max Revenue beat(4)-0.78%
Revenue beat(8)0
Avg Revenue beat(8)-1.29%
Revenue beat(12)0
Avg Revenue beat(12)-1.4%
Revenue beat(16)2
Avg Revenue beat(16)-1.02%
PT rev (1m)-2.11%
PT rev (3m)-3.68%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)1.48%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)-1.23%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.51 | ||
| Fwd PE | 20.8 | ||
| P/S | 8.76 | ||
| P/FCF | 23.94 | ||
| P/OCF | 23.4 | ||
| P/B | 13.36 | ||
| P/tB | 352.29 | ||
| EV/EBITDA | 23.04 |
EPS(TTM)17.58
EY4.25%
EPS(NY)19.87
Fwd EY4.81%
FCF(TTM)17.26
FCFY4.18%
OCF(TTM)17.66
OCFY4.27%
SpS47.15
BVpS30.93
TBVpS1.17
PEG (NY)1.81
PEG (5Y)1.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.39% | ||
| ROE | 39.42% | ||
| ROCE | 39.28% | ||
| ROIC | 31.43% | ||
| ROICexc | 52.4% | ||
| ROICexgc | N/A | ||
| OM | 36% | ||
| PM (TTM) | 25.85% | ||
| GM | 89.04% | ||
| FCFM | 36.61% |
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%
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.71 | ||
| Debt/EBITDA | 0.48 | ||
| Cap/Depr | 21.35% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 82.35 | ||
| Cash Conversion | 93.7% | ||
| Profit Quality | 141.6% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 10.83 |
F-Score7
WACC13.73%
ROIC/WACC2.29
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)14.62%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%12.65%
EPS Next Y13%
EPS Next 2Y13%
EPS Next 3Y12.51%
EPS Next 5Y11.62%
Revenue 1Y (TTM)10.8%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%11.05%
Revenue Next Year9.59%
Revenue Next 2Y9.87%
Revenue Next 3Y9.67%
Revenue Next 5Y9.4%
EBIT growth 1Y16.41%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year16.33%
EBIT Next 3Y11.72%
EBIT Next 5Y9.91%
FCF growth 1Y13.41%
FCF growth 3Y4.59%
FCF growth 5Y14.35%
OCF growth 1Y10.33%
OCF growth 3Y3.67%
OCF growth 5Y12.75%