ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ADBE - US00724F1012 - Common Stock
301.2 EUR
+2.75 (+0.92%)
We assign a fundamental rating of 7 out of 10 to 1ADBE. 1ADBE was compared to 105 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on 1ADBE. These ratings would make 1ADBE suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
1ADBE had positive earnings in the past year.
In the past year 1ADBE had a positive cash flow from operations.
In the past 5 years 1ADBE has always been profitable.
Each year in the past 5 years 1ADBE had a positive operating cash flow.
1.2 Ratios
1ADBE has a better Return On Assets (24.17%) than 93.33% of its industry peers.
1ADBE has a better Return On Equity (61.34%) than 95.24% of its industry peers.
The Return On Invested Capital of 1ADBE (36.51%) is better than 97.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1ADBE is significantly above the industry average of 13.30%.
The last Return On Invested Capital (36.51%) for 1ADBE is above the 3 year average (31.10%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 30.00%, 1ADBE belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
In the last couple of years the Profit Margin of 1ADBE has declined.
With an excellent Operating Margin value of 36.63%, 1ADBE belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
1ADBE's Operating Margin has been stable in the last couple of years.
1ADBE's Gross Margin of 89.27% is amongst the best of the industry. 1ADBE outperforms 84.76% of its industry peers.
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 | 36.63% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1ADBE is creating value.
1ADBE has less shares outstanding than it did 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 8.92 indicates that 1ADBE is not in any danger for bankruptcy at the moment.
1ADBE has a Altman-Z score of 8.92. This is amongst the best in the industry. 1ADBE outperforms 83.81% of its industry peers.
1ADBE has a debt to FCF ratio of 0.63. This is a very positive value and a sign of high solvency as it would only need 0.63 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.63, 1ADBE belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
1ADBE has a Debt/Equity ratio of 0.53. This is a neutral value indicating 1ADBE is somewhat dependend on debt financing.
1ADBE has a Debt to Equity ratio of 0.53. This is in the lower half of the industry: 1ADBE underperforms 68.57% of its industry peers.
Even though the debt/equity ratio score it not favorable for 1ADBE, 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 | 0.63 | ||
| Altman-Z | 8.92 |
ROIC/WACC3.34
WACC10.94%
2.3 Liquidity
1ADBE has a Current Ratio of 1.00. This is a bad value and indicates that 1ADBE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 1.00, 1ADBE is not doing good in the industry: 68.57% of the companies in the same industry are doing better.
1ADBE has a Quick Ratio of 1.00. This is a bad value and indicates that 1ADBE is not financially healthy enough and could expect problems in meeting its short term obligations.
1ADBE's Quick ratio of 1.00 is on the low side compared to the rest of the industry. 1ADBE is outperformed by 68.57% of its industry peers.
The current and quick ratio evaluation for 1ADBE 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
1ADBE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.74%, 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 15.87% on average per year.
The Revenue has grown by 10.53% in the past year. This is quite good.
Measured over the past years, 1ADBE 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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
1ADBE is valuated correctly with a Price/Earnings ratio of 16.95.
1ADBE's Price/Earnings ratio is rather cheap when compared to the industry. 1ADBE is cheaper than 85.71% of the companies in the same industry.
1ADBE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.82 indicates a correct valuation of 1ADBE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1ADBE indicates a rather cheap valuation: 1ADBE is cheaper than 86.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 1ADBE to the average of the S&P500 Index (23.40), we can say 1ADBE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 14.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ADBE is valued a bit cheaper than the industry average as 64.76% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 1ADBE is valued cheaper than 83.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.08 | ||
| EV/EBITDA | 15.44 |
4.3 Compensation for Growth
1ADBE's 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.
A more expensive valuation may be justified as 1ADBE's earnings are expected to grow with 12.98% in the coming years.
PEG (NY)1.18
PEG (5Y)1.07
EPS Next 2Y13.69%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
1ADBE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1ADBE (12/23/2025, 7:00:00 PM)
301.2
+2.75 (+0.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners85.97%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap126.08B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts79.13
Price Target380.16 (26.22%)
Short Float %N/A
Short RatioN/A
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)-6.48%
PT rev (3m)-6.69%
EPS NQ rev (1m)3.43%
EPS NQ rev (3m)3.18%
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)0.6%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 14.82 | ||
| P/S | 6.25 | ||
| P/FCF | 15.08 | ||
| P/OCF | 14.82 | ||
| P/B | 12.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.44 |
EPS(TTM)17.77
EY5.9%
EPS(NY)20.33
Fwd EY6.75%
FCF(TTM)19.97
FCFY6.63%
OCF(TTM)20.33
OCFY6.75%
SpS48.17
BVpS23.56
TBVpS-3.5
PEG (NY)1.18
PEG (5Y)1.07
Graham Number97.05
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 | 8.92 |
F-Score7
WACC10.94%
ROIC/WACC3.34
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 / 1ADBE.MI FAQ
What is the ChartMill fundamental rating of ADOBE INC (1ADBE.MI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to 1ADBE.MI.
Can you provide the valuation status for ADOBE INC?
ChartMill assigns a valuation rating of 7 / 10 to ADOBE INC (1ADBE.MI). This can be considered as Undervalued.
How profitable is ADOBE INC (1ADBE.MI) stock?
ADOBE INC (1ADBE.MI) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for 1ADBE stock?
The Price/Earnings (PE) ratio for ADOBE INC (1ADBE.MI) is 16.95 and the Price/Book (PB) ratio is 12.79.
Can you provide the financial health for 1ADBE stock?
The financial health rating of ADOBE INC (1ADBE.MI) is 7 / 10.