ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
BIT:1ADBE • US00724F1012
218.85 EUR
-0.6 (-0.27%)
Last: Feb 27, 2026, 07:00 PM
Overall 1ADBE gets a fundamental rating of 7 out of 10. We evaluated 1ADBE against 112 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 With these ratings, 1ADBE could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year 1ADBE was profitable.
- 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 has a better Return On Assets (24.17%) than 93.75% of its industry peers.
- 1ADBE's Return On Equity of 61.34% is amongst the best of the industry. 1ADBE outperforms 96.43% of its industry peers.
- 1ADBE has a better Return On Invested Capital (36.51%) than 97.32% 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 12.70%.
- 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
- The Profit Margin of 1ADBE (30.00%) is better than 89.29% of its industry peers.
- 1ADBE's Profit Margin has declined in the last couple of years.
- The Operating Margin of 1ADBE (36.63%) is better than 92.86% 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 84.82% 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
- 1ADBE has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 7.50 indicates that 1ADBE is not in any danger for bankruptcy at the moment.
- 1ADBE has a better Altman-Z score (7.50) than 89.29% 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's Debt to FCF ratio of 0.63 is amongst the best of the industry. 1ADBE outperforms 81.25% 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 has a worse Debt to Equity ratio (0.53) than 67.86% of its industry peers.
- Although 1ADBE does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 7.5 |
ROIC/WACC3.37
WACC10.82%
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 69.64% 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.
- 1ADBE has a worse Quick ratio (1.00) than 69.64% 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.
- The Revenue has grown by 10.53% 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 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 9.91% on average over the next years. This is quite good.
- 1ADBE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.02% yearly.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
- Based on the Price/Earnings ratio of 12.34, the valuation of 1ADBE can be described as correct.
- Based on the Price/Earnings ratio, 1ADBE is valued cheaper than 89.29% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.10, 1ADBE is valued rather cheaply.
- The Price/Forward Earnings ratio is 10.79, which indicates a very decent valuation of 1ADBE.
- Based on the Price/Forward Earnings ratio, 1ADBE is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
- 1ADBE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.34 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
- 1ADBE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1ADBE is cheaper than 71.43% of the companies in the same industry.
- 1ADBE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 1ADBE is cheaper than 89.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.77 | ||
| EV/EBITDA | 11.01 |
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.
- A more expensive valuation may be justified as 1ADBE's earnings are expected to grow with 12.14% in the coming years.
PEG (NY)0.86
PEG (5Y)0.78
EPS Next 2Y13.61%
EPS Next 3Y12.14%
5. Dividend
5.1 Amount
- 1ADBE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1ADBE (2/27/2026, 7:00:00 PM)
218.85
-0.6 (-0.27%)
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 Cap89.84B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts75.65
Price Target368.18 (68.23%)
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)-2.18%
PT rev (3m)-9.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.32%
EPS NY rev (1m)0%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.34 | ||
| Fwd PE | 10.79 | ||
| P/S | 4.47 | ||
| P/FCF | 10.77 | ||
| P/OCF | 10.58 | ||
| P/B | 9.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.01 |
EPS(TTM)17.73
EY8.1%
EPS(NY)20.28
Fwd EY9.27%
FCF(TTM)20.31
FCFY9.28%
OCF(TTM)20.68
OCFY9.45%
SpS49.01
BVpS23.97
TBVpS-3.57
PEG (NY)0.86
PEG (5Y)0.78
Graham Number97.78
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 | 7.5 |
F-Score7
WACC10.82%
ROIC/WACC3.37
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 Year13.1%
EBIT Next 3Y8.83%
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 12.34 and the Price/Book (PB) ratio is 9.13.