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 101 industry peers in the Software industry. 1ADBE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1ADBE is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
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
1ADBE's Return On Assets of 24.44% is amongst the best of the industry. 1ADBE outperforms 98.02% of its industry peers.
Looking at the Return On Equity, with a value of 60.00%, 1ADBE belongs to the top of the industry, outperforming 95.05% of the companies in the same industry.
1ADBE has a Return On Invested Capital of 34.50%. This is amongst the best in the industry. 1ADBE outperforms 98.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1ADBE is significantly above the industry average of 10.93%.
The 3 year average ROIC (27.26%) for 1ADBE is below the current ROIC(34.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.44% | ||
| ROE | 60% | ||
| ROIC | 34.5% |
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's Profit Margin of 30.39% is amongst the best of the industry. 1ADBE outperforms 95.05% of its industry peers.
1ADBE's Profit Margin has been stable in the last couple of years.
1ADBE has a Operating Margin of 36.37%. This is amongst the best in the industry. 1ADBE outperforms 96.04% of its industry peers.
In the last couple of years the Operating Margin of 1ADBE has grown nicely.
Looking at the Gross Margin, with a value of 89.25%, 1ADBE belongs to the top of the industry, outperforming 86.14% 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 | 36.37% | ||
| PM (TTM) | 30.39% | ||
| GM | 89.25% |
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.
1ADBE has less shares outstanding than it did 1 year ago.
1ADBE has less shares outstanding than it did 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 9.62. This indicates that 1ADBE is financially healthy and has little risk of bankruptcy at the moment.
1ADBE has a better Altman-Z score (9.62) than 86.14% of its industry peers.
The Debt to FCF ratio of 1ADBE is 0.65, which is an excellent value as it means it would take 1ADBE, only 0.65 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1ADBE (0.65) is better than 87.13% of its industry peers.
1ADBE has a Debt/Equity ratio of 0.54. This is a neutral value indicating 1ADBE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.54, 1ADBE is in line with its industry, outperforming 41.58% of the companies in the same industry.
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 | 0.54 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 9.62 |
ROIC/WACC3.22
WACC10.73%
2.3 Liquidity
A Current Ratio of 0.99 indicates that 1ADBE may have some problems paying its short term obligations.
1ADBE has a worse Current ratio (0.99) than 66.34% of its industry peers.
A Quick Ratio of 0.99 indicates that 1ADBE may have some problems paying its short term obligations.
1ADBE's Quick ratio of 0.99 is on the low side compared to the rest of the industry. 1ADBE is outperformed by 65.35% 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 | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.16% 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.
Looking at the last year, 1ADBE shows a quite strong growth in Revenue. The Revenue has grown by 10.63% in the last year.
The Revenue has been growing by 14.00% on average over the past years. This is quite good.
EPS 1Y (TTM)13.16%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%12.95%
Revenue 1Y (TTM)10.63%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.62%
3.2 Future
The Earnings Per Share is expected to grow by 11.03% 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 9.28% on average per year.
EPS Next Y14.24%
EPS Next 2Y13.33%
EPS Next 3Y13.28%
EPS Next 5Y11.03%
Revenue Next Year9.89%
Revenue Next 2Y9.67%
Revenue Next 3Y9.65%
Revenue Next 5Y9.28%
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
The Price/Earnings ratio is 18.76, which indicates a rather expensive current valuation of 1ADBE.
Based on the Price/Earnings ratio, 1ADBE is valued cheaper than 88.12% of the companies in the same industry.
1ADBE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
1ADBE is valuated correctly with a Price/Forward Earnings ratio of 15.54.
Based on the Price/Forward Earnings ratio, 1ADBE is valued cheaper than 80.20% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1ADBE to the average of the S&P500 Index (21.76), we can say 1ADBE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 15.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ADBE is valued a bit cheaper than the industry average as 64.36% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ADBE indicates a rather cheap valuation: 1ADBE is cheaper than 83.17% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.61 | ||
| EV/EBITDA | 17.73 |
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 13.28% in the coming years.
PEG (NY)1.32
PEG (5Y)1
EPS Next 2Y13.33%
EPS Next 3Y13.28%
5. Dividend
5.1 Amount
1ADBE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1ADBE (7/11/2025, 7:00:00 PM)
314.05
-7.45 (-2.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.09%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap133.85B
Analysts80
Price Target450.54 (43.46%)
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)1
Avg EPS beat(2)0.06%
Min EPS beat(2)-0.06%
Max EPS beat(2)0.18%
EPS beat(4)3
Avg EPS beat(4)0.48%
Min EPS beat(4)-0.06%
Max EPS beat(4)1.15%
EPS beat(8)7
Avg EPS beat(8)0.53%
EPS beat(12)10
Avg EPS beat(12)0.62%
EPS beat(16)11
Avg EPS beat(16)0.3%
Revenue beat(2)0
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)-0.56%
Revenue beat(4)0
Avg Revenue beat(4)-0.89%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)-0.56%
Revenue beat(8)0
Avg Revenue beat(8)-1.2%
Revenue beat(12)0
Avg Revenue beat(12)-1.32%
Revenue beat(16)0
Avg Revenue beat(16)-1.29%
PT rev (1m)-0.46%
PT rev (3m)-8.03%
EPS NQ rev (1m)1.37%
EPS NQ rev (3m)1.33%
EPS NY rev (1m)1.32%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 15.54 | ||
| P/S | 6.93 | ||
| P/FCF | 16.61 | ||
| P/OCF | 16.3 | ||
| P/B | 13.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.73 |
EPS(TTM)16.74
EY5.33%
EPS(NY)20.2
Fwd EY6.43%
FCF(TTM)18.91
FCFY6.02%
OCF(TTM)19.27
OCFY6.14%
SpS45.29
BVpS22.94
TBVpS-4.03
PEG (NY)1.32
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.44% | ||
| ROE | 60% | ||
| ROCE | 43.11% | ||
| ROIC | 34.5% | ||
| ROICexc | 46.41% | ||
| ROICexgc | 918.86% | ||
| OM | 36.37% | ||
| PM (TTM) | 30.39% | ||
| GM | 89.25% | ||
| FCFM | 41.75% |
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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 20.77% | ||
| Cap/Sales | 0.79% | ||
| Interest Coverage | 51.06 | ||
| Cash Conversion | 105.92% | ||
| Profit Quality | 137.39% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 9.62 |
F-Score7
WACC10.73%
ROIC/WACC3.22
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)13.16%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%12.95%
EPS Next Y14.24%
EPS Next 2Y13.33%
EPS Next 3Y13.28%
EPS Next 5Y11.03%
Revenue 1Y (TTM)10.63%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.62%
Revenue Next Year9.89%
Revenue Next 2Y9.67%
Revenue Next 3Y9.65%
Revenue Next 5Y9.28%
EBIT growth 1Y13.68%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year16.09%
EBIT Next 3Y11.14%
EBIT Next 5Y10.02%
FCF growth 1Y27.13%
FCF growth 3Y4.59%
FCF growth 5Y14.35%
OCF growth 1Y22.31%
OCF growth 3Y3.67%
OCF growth 5Y12.75%