ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ADBE - US00724F1012 - Common Stock
292.4 EUR
+10.95 (+3.89%)
Overall 1ADBE gets a fundamental rating of 7 out of 10. We evaluated 1ADBE against 114 industry peers in the Software industry. Both the health and profitability get an excellent rating, making 1ADBE a very profitable company, without any liquidiy or solvency issues. 1ADBE may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make 1ADBE a good candidate for value and 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.
1ADBE had positive earnings in each of the past 5 years.
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 24.17%, 1ADBE belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
1ADBE has a Return On Equity of 61.34%. This is amongst the best in the industry. 1ADBE outperforms 96.49% of its industry peers.
1ADBE's Return On Invested Capital of 36.51% is amongst the best of the industry. 1ADBE outperforms 97.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1ADBE is significantly above the industry average of 12.49%.
The 3 year average ROIC (31.10%) for 1ADBE 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
1ADBE's Profit Margin of 30.00% is amongst the best of the industry. 1ADBE outperforms 89.47% of its industry peers.
1ADBE's Profit Margin has declined in the last couple of years.
1ADBE has a better Operating Margin (36.63%) than 92.98% of its industry peers.
In the last couple of years the Operating Margin of 1ADBE has remained more or less at the same level.
1ADBE has a Gross Margin of 89.27%. This is amongst the best in the industry. 1ADBE outperforms 85.09% of its industry peers.
1ADBE'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), 1ADBE 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.
Compared to 1 year ago, 1ADBE has a worse debt to assets ratio.
2.2 Solvency
1ADBE has an Altman-Z score of 8.73. This indicates that 1ADBE is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.73, 1ADBE belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
The Debt to FCF ratio of 1ADBE is 0.63, which is an excellent value as it means it would take 1ADBE, only 0.63 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.63, 1ADBE belongs to the best of the industry, outperforming 85.09% 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's Debt to Equity ratio of 0.53 is on the low side compared to the rest of the industry. 1ADBE is outperformed by 66.67% 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 | 8.73 |
ROIC/WACC3.35
WACC10.91%
2.3 Liquidity
A Current Ratio of 1.00 indicates that 1ADBE may have some problems paying its short term obligations.
1ADBE has a Current ratio of 1.00. This is in the lower half of the industry: 1ADBE underperforms 70.18% of its industry peers.
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.
The Quick ratio of 1ADBE (1.00) is worse than 70.18% 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 | ||
| 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.
1ADBE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.87% yearly.
Looking at the last year, 1ADBE shows a quite strong growth in Revenue. The Revenue has grown by 10.53% in the last year.
1ADBE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.06% yearly.
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.
Based on estimates for the next years, 1ADBE will show a quite strong growth in Revenue. The Revenue will grow by 8.36% on average per year.
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
The Price/Earnings ratio is 16.30, which indicates a correct 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 85.09% of the companies listed in the same industry.
1ADBE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.25, 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 85.09% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, 1ADBE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 14.25 |
4.2 Price Multiples
65.79% of the companies in the same industry are more expensive than 1ADBE, based on the Enterprise Value to EBITDA ratio.
1ADBE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 1ADBE is cheaper than 82.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.5 | ||
| EV/EBITDA | 14.84 |
4.3 Compensation for Growth
1ADBE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 12.98% in the coming years.
PEG (NY)1.13
PEG (5Y)1.03
EPS Next 2Y13.69%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
No dividends for 1ADBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1ADBE (1/8/2026, 7:00:00 PM)
292.4
+10.95 (+3.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.02%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap122.40B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts79.13
Price Target380.16 (30.01%)
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)3.51%
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)0.54%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 14.25 | ||
| P/S | 6.01 | ||
| P/FCF | 14.5 | ||
| P/OCF | 14.25 | ||
| P/B | 12.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.84 |
EPS(TTM)17.94
EY6.14%
EPS(NY)20.52
Fwd EY7.02%
FCF(TTM)20.16
FCFY6.89%
OCF(TTM)20.53
OCFY7.02%
SpS48.64
BVpS23.78
TBVpS-3.54
PEG (NY)1.13
PEG (5Y)1.03
Graham Number97.98
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 | 8.73 |
F-Score7
WACC10.91%
ROIC/WACC3.35
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.
What is the valuation status of ADOBE INC (1ADBE.MI) stock?
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.
What is the valuation of ADOBE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ADOBE INC (1ADBE.MI) is 16.3 and the Price/Book (PB) ratio is 12.29.