ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
BIT:1ADBE - Euronext Milan - US00724F1012 - Common Stock - Currency: EUR
Taking everything into account, 1ADBE scores 7 out of 10 in our fundamental rating. 1ADBE was compared to 94 industry peers in the Software industry. 1ADBE gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
1ADBE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 22.54%, 1ADBE belongs to the top of the industry, outperforming 98.94% of the companies in the same industry.
1ADBE has a better Return On Equity (51.55%) than 96.81% of its industry peers.
With an excellent Return On Invested Capital value of 30.78%, 1ADBE belongs to the best of the industry, outperforming 98.94% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1ADBE is significantly above the industry average of 11.00%.
The 3 year average ROIC (27.26%) for 1ADBE is below the current ROIC(30.78%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.54% | ||
| ROE | 51.55% | ||
| ROIC | 30.78% |
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
The Profit Margin of 1ADBE (30.63%) is better than 92.55% of its industry peers.
In the last couple of years the Profit Margin of 1ADBE has remained more or less at the same level.
1ADBE has a Operating Margin of 36.29%. This is amongst the best in the industry. 1ADBE outperforms 95.74% of its industry peers.
In the last couple of years the Operating Margin of 1ADBE has grown nicely.
1ADBE's Gross Margin of 89.15% is amongst the best of the industry. 1ADBE outperforms 87.23% of its industry peers.
1ADBE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.29% | ||
| PM (TTM) | 30.63% | ||
| GM | 89.15% |
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
1ADBE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for 1ADBE has been reduced compared to 1 year ago.
The number of shares outstanding for 1ADBE has been reduced compared to 5 years ago.
The debt/assets ratio for 1ADBE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.79 indicates that 1ADBE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.79, 1ADBE belongs to the top of the industry, outperforming 89.36% of the companies in the same industry.
1ADBE has a debt to FCF ratio of 0.67. This is a very positive value and a sign of high solvency as it would only need 0.67 years to pay back of all of its debts.
1ADBE has a Debt to FCF ratio of 0.67. This is amongst the best in the industry. 1ADBE outperforms 84.04% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that 1ADBE is not too dependend on debt financing.
1ADBE has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: 1ADBE outperforms 40.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 8.79 |
ROIC/WACC2.83
WACC10.88%
2.3 Liquidity
1ADBE has a Current Ratio of 1.18. This is a normal value and indicates that 1ADBE is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.18, 1ADBE perfoms like the industry average, outperforming 46.81% of the companies in the same industry.
1ADBE has a Quick Ratio of 1.18. This is a normal value and indicates that 1ADBE is financially healthy and should not expect problems in meeting its short term obligations.
1ADBE's Quick ratio of 1.18 is in line compared to the rest of the industry. 1ADBE outperforms 48.94% of its industry peers.
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 | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.55% over the past year.
1ADBE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.69% yearly.
The Revenue has grown by 10.54% in the past year. This is quite good.
1ADBE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.00% yearly.
EPS 1Y (TTM)13.55%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%13.39%
Revenue 1Y (TTM)10.54%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.27%
3.2 Future
1ADBE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.51% yearly.
The Revenue is expected to grow by 9.39% on average over the next years. This is quite good.
EPS Next Y12.78%
EPS Next 2Y12.56%
EPS Next 3Y12.52%
EPS Next 5Y11.51%
Revenue Next Year9.5%
Revenue Next 2Y9.69%
Revenue Next 3Y9.72%
Revenue Next 5Y9.39%
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
The Price/Earnings ratio is 18.13, which indicates a rather expensive current valuation of 1ADBE.
Compared to the rest of the industry, the Price/Earnings ratio of 1ADBE indicates a rather cheap valuation: 1ADBE is cheaper than 87.23% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.79. 1ADBE is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.78, which indicates a correct valuation of 1ADBE.
1ADBE's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1ADBE is cheaper than 86.17% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, 1ADBE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.13 | ||
| Fwd PE | 14.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ADBE is valued a bit cheaper than the industry average as 62.77% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 1ADBE is valued cheaper than 82.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.99 | ||
| EV/EBITDA | 16.37 |
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 1ADBE may justify a higher PE ratio.
1ADBE's earnings are expected to grow with 12.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.42
PEG (5Y)0.97
EPS Next 2Y12.56%
EPS Next 3Y12.52%
5. Dividend
5.1 Amount
1ADBE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1ADBE (4/22/2025, 7:00:00 PM)
303.1
-4.05 (-1.32%)
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 Cap129.18B
Analysts80
Price Target489.86 (61.62%)
Short Float %N/A
Short RatioN/A
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)2
Avg EPS beat(2)0.66%
Min EPS beat(2)0.18%
Max EPS beat(2)1.15%
EPS beat(4)4
Avg EPS beat(4)0.51%
Min EPS beat(4)0.06%
Max EPS beat(4)1.15%
EPS beat(8)8
Avg EPS beat(8)0.69%
EPS beat(12)10
Avg EPS beat(12)0.56%
EPS beat(16)12
Avg EPS beat(16)0.66%
Revenue beat(2)0
Avg Revenue beat(2)-0.88%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)-0.78%
Revenue beat(4)0
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-1.65%
Max Revenue beat(4)-0.78%
Revenue beat(8)0
Avg Revenue beat(8)-1.25%
Revenue beat(12)0
Avg Revenue beat(12)-1.36%
Revenue beat(16)1
Avg Revenue beat(16)-1.2%
PT rev (1m)-11.89%
PT rev (3m)-15.42%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-1.81%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-1.73%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.13 | ||
| Fwd PE | 14.78 | ||
| P/S | 6.67 | ||
| P/FCF | 15.99 | ||
| P/OCF | 15.69 | ||
| P/B | 11.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.37 |
EPS(TTM)16.72
EY5.52%
EPS(NY)20.51
Fwd EY6.77%
FCF(TTM)18.96
FCFY6.25%
OCF(TTM)19.31
OCFY6.37%
SpS45.45
BVpS27.01
TBVpS-0.8
PEG (NY)1.42
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.54% | ||
| ROE | 51.55% | ||
| ROCE | 38.46% | ||
| ROIC | 30.78% | ||
| ROICexc | 47.91% | ||
| ROICexgc | N/A | ||
| OM | 36.29% | ||
| PM (TTM) | 30.63% | ||
| GM | 89.15% | ||
| FCFM | 41.71% |
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-Score8
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 0.67 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 19.95% | ||
| Cap/Sales | 0.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.7% | ||
| Profit Quality | 136.16% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 8.79 |
F-Score8
WACC10.88%
ROIC/WACC2.83
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)13.55%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%13.39%
EPS Next Y12.78%
EPS Next 2Y12.56%
EPS Next 3Y12.52%
EPS Next 5Y11.51%
Revenue 1Y (TTM)10.54%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.27%
Revenue Next Year9.5%
Revenue Next 2Y9.69%
Revenue Next 3Y9.72%
Revenue Next 5Y9.39%
EBIT growth 1Y14.72%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year16.13%
EBIT Next 3Y11.14%
EBIT Next 5Y9.86%
FCF growth 1Y25.59%
FCF growth 3Y4.59%
FCF growth 5Y14.35%
OCF growth 1Y20.64%
OCF growth 3Y3.67%
OCF growth 5Y12.75%