ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ADBE - US00724F1012 - Common Stock
282.2 EUR
-10.2 (-3.49%)
1ADBE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 125 industry peers in the Software industry. 1ADBE gets an excellent profitability rating and is at the same time showing great financial health properties. 1ADBE may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make 1ADBE suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year 1ADBE was profitable.
In the past year 1ADBE had a positive cash flow from operations.
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
1ADBE's Return On Assets of 24.17% is amongst the best of the industry. 1ADBE outperforms 93.60% 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 94.40% of the companies in the same industry.
The Return On Invested Capital of 1ADBE (36.51%) is better than 96.80% 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 12.89%.
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
The Profit Margin of 1ADBE (30.00%) is better than 89.60% of its industry peers.
In the last couple of years the Profit Margin of 1ADBE has declined.
1ADBE's Operating Margin of 36.63% is amongst the best of the industry. 1ADBE outperforms 93.60% of its industry peers.
In the last couple of years the Operating Margin of 1ADBE has remained more or less at the same level.
Looking at the Gross Margin, with a value of 89.27%, 1ADBE belongs to the top of the industry, outperforming 86.40% of the companies in the same industry.
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.
1ADBE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1ADBE has less shares outstanding
1ADBE has a worse debt/assets ratio than last year.
2.2 Solvency
1ADBE has an Altman-Z score of 8.71. This indicates that 1ADBE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1ADBE (8.71) is better than 84.80% 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 82.40% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that 1ADBE is somewhat dependend on debt financing.
1ADBE has a worse Debt to Equity ratio (0.53) than 67.20% 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 | 8.71 |
ROIC/WACC3.33
WACC10.95%
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.
1ADBE's Current ratio of 1.00 is on the low side compared to the rest of the industry. 1ADBE is outperformed by 72.00% of its industry peers.
A Quick Ratio of 1.00 indicates that 1ADBE may have some problems paying its short term obligations.
With a Quick ratio value of 1.00, 1ADBE is not doing good in the industry: 71.20% of the companies in the same industry are doing better.
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.
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.
Looking at the last year, 1ADBE shows a quite strong growth in Revenue. The Revenue has grown by 10.53% in the last year.
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
1ADBE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.91% yearly.
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 Y14.38%
EPS Next 2Y13.69%
EPS Next 3Y12.98%
EPS Next 5Y9.91%
Revenue Next Year9.9%
Revenue Next 2Y9.55%
Revenue Next 3Y9.43%
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.
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 15.68.
1ADBE's Price/Earnings ratio is rather cheap when compared to the industry. 1ADBE is cheaper than 85.60% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1ADBE to the average of the S&P500 Index (27.25), we can say 1ADBE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.71, the valuation of 1ADBE can be described as correct.
Based on the Price/Forward Earnings ratio, 1ADBE is valued cheaply inside the industry as 86.40% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.98. 1ADBE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 13.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ADBE is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 1ADBE is valued cheaper than 85.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.96 | ||
| EV/EBITDA | 14.8 |
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)1.09
PEG (5Y)0.99
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 (1/12/2026, 7:00:00 PM)
282.2
-10.2 (-3.49%)
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 Cap118.13B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts78.7
Price Target380.16 (34.71%)
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)-3.74%
PT rev (3m)-5.13%
EPS NQ rev (1m)3.51%
EPS NQ rev (3m)3.29%
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)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 13.71 | ||
| P/S | 5.79 | ||
| P/FCF | 13.96 | ||
| P/OCF | 13.71 | ||
| P/B | 11.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.8 |
EPS(TTM)18
EY6.38%
EPS(NY)20.58
Fwd EY7.29%
FCF(TTM)20.22
FCFY7.16%
OCF(TTM)20.58
OCFY7.29%
SpS48.77
BVpS23.85
TBVpS-3.55
PEG (NY)1.09
PEG (5Y)0.99
Graham Number98.28
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 | 8.71 |
F-Score7
WACC10.95%
ROIC/WACC3.33
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 5Y9.91%
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 5Y8.02%
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 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 15.68 and the Price/Book (PB) ratio is 11.83.