ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ADBE - US00724F1012 - Common Stock
247.6 EUR
-5.2 (-2.06%)
1ADBE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 119 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 This makes 1ADBE very considerable 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.
- In the past 5 years 1ADBE has always been profitable.
- 1ADBE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1ADBE has a better Return On Assets (24.17%) than 92.44% of its industry peers.
- Looking at the Return On Equity, with a value of 61.34%, 1ADBE belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
- 1ADBE's Return On Invested Capital of 36.51% is amongst the best of the industry. 1ADBE outperforms 96.64% of its industry peers.
- 1ADBE had an Average Return On Invested Capital over the past 3 years of 31.10%. This is significantly above the industry average of 13.47%.
- 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
- Looking at the Profit Margin, with a value of 30.00%, 1ADBE belongs to the top of the industry, outperforming 89.92% 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 93.28% of the companies in the same industry.
- 1ADBE's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 89.27%, 1ADBE belongs to the top of the industry, outperforming 85.71% 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 | 36.63% | ||
| 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.
- 1ADBE has less shares outstanding than it did 5 years ago.
- 1ADBE has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 8.02 indicates that 1ADBE is not in any danger for bankruptcy at the moment.
- 1ADBE's Altman-Z score of 8.02 is amongst the best of the industry. 1ADBE outperforms 82.35% of its industry peers.
- 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.
- 1ADBE has a better Debt to FCF ratio (0.63) than 83.19% of its industry peers.
- 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 66.39% 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 | 8.02 |
ROIC/WACC3.3
WACC11.06%
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.
- The Current ratio of 1ADBE (1.00) is worse than 71.43% of its industry peers.
- A Quick Ratio of 1.00 indicates that 1ADBE may have some problems paying its short term obligations.
- 1ADBE has a Quick ratio of 1.00. This is in the lower half of the industry: 1ADBE underperforms 70.59% 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.
- The Earnings Per Share has been growing by 15.87% on average over the past years. This is quite good.
- 1ADBE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.53%.
- 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
- Based on estimates for the next years, 1ADBE will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.91% on average per year.
- Based on estimates for the next years, 1ADBE will show a quite strong growth in Revenue. The Revenue will grow by 8.02% on average per year.
EPS Next Y14.37%
EPS Next 2Y13.61%
EPS Next 3Y12.14%
EPS Next 5Y9.91%
Revenue Next Year9.89%
Revenue Next 2Y9.49%
Revenue Next 3Y9.04%
Revenue Next 5Y8.02%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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 13.87, which indicates a correct valuation of 1ADBE.
- 85.71% of the companies in the same industry are more expensive than 1ADBE, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of 1ADBE to the average of the S&P500 Index (27.32), we can say 1ADBE is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 12.13, 1ADBE is valued correctly.
- Based on the Price/Forward Earnings ratio, 1ADBE is valued cheaply inside the industry as 87.39% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.30, 1ADBE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 12.13 |
4.2 Price Multiples
- 1ADBE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1ADBE is cheaper than 70.59% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, 1ADBE is valued cheaply inside the industry as 87.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.35 | ||
| EV/EBITDA | 12.61 |
4.3 Compensation for Growth
- 1ADBE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 1ADBE has an outstanding profitability rating, which may justify a higher PE ratio.
- 1ADBE's earnings are expected to grow with 12.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)0.87
EPS Next 2Y13.61%
EPS Next 3Y12.14%
5. Dividend
5.1 Amount
- No dividends for 1ADBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1ADBE (1/20/2026, 7:00:00 PM)
247.6
-5.2 (-2.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-10 2025-12-10/amc
Earnings (Next)03-12 2026-03-12/amc
Inst Owners86.02%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap103.65B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts78.7
Price Target376.4 (52.02%)
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)-4.69%
PT rev (3m)-6.07%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)3.32%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 12.13 | ||
| P/S | 5.12 | ||
| P/FCF | 12.35 | ||
| P/OCF | 12.13 | ||
| P/B | 10.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.61 |
EPS(TTM)17.85
EY7.21%
EPS(NY)20.41
Fwd EY8.24%
FCF(TTM)20.05
FCFY8.1%
OCF(TTM)20.41
OCFY8.24%
SpS48.37
BVpS23.65
TBVpS-3.52
PEG (NY)0.97
PEG (5Y)0.87
Graham Number97.47
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 | 8.02 |
F-Score7
WACC11.06%
ROIC/WACC3.3
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 Y14.37%
EPS Next 2Y13.61%
EPS Next 3Y12.14%
EPS Next 5Y9.91%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y10.52%
Revenue growth 5Y13.06%
Sales Q2Q%10.49%
Revenue Next Year9.89%
Revenue Next 2Y9.49%
Revenue Next 3Y9.04%
Revenue Next 5Y8.02%
EBIT growth 1Y12.47%
EBIT growth 3Y12.6%
EBIT growth 5Y14.5%
EBIT Next Year13.32%
EBIT Next 3Y10.22%
EBIT Next 5Y9.3%
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 8 / 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 13.87 and the Price/Book (PB) ratio is 10.47.