ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ADBE - US00724F1012 - Common Stock
281.45 EUR
-17.9 (-5.98%)
1ADBE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 114 industry peers in the Software industry. 1ADBE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1ADBE scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
1ADBE had positive earnings in each of the past 5 years.
In the past 5 years 1ADBE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 24.17%, 1ADBE belongs to the top of the industry, outperforming 95.61% 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 97.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 36.51%, 1ADBE belongs to the top of the industry, outperforming 98.25% of the companies in the same industry.
1ADBE had an Average Return On Invested Capital over the past 3 years of 31.10%. This is significantly above the industry average of 12.49%.
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
1ADBE has a Profit Margin of 30.00%. This is amongst the best in the industry. 1ADBE outperforms 90.35% of its industry peers.
1ADBE's Profit Margin has declined in the last couple of years.
1ADBE has a Operating Margin of 36.63%. This is amongst the best in the industry. 1ADBE outperforms 93.86% of its industry peers.
In the last couple of years the Operating Margin of 1ADBE has remained more or less at the same level.
The Gross Margin of 1ADBE (89.27%) is better than 85.96% 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.
Compared to 1 year ago, 1ADBE has less shares outstanding
Compared to 5 years ago, 1ADBE has less shares outstanding
1ADBE has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.55 indicates that 1ADBE is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1ADBE (8.55) is better than 84.21% of its industry peers.
1ADBE has a debt to FCF ratio of 0.63. This is a very positive value and a sign of high solvency as it would only need 0.63 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.63, 1ADBE belongs to the best of the industry, outperforming 85.96% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that 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 65.79% 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 | 8.55 |
ROIC/WACC3.35
WACC10.89%
2.3 Liquidity
A Current Ratio of 1.00 indicates that 1ADBE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.00, 1ADBE is doing worse than 69.30% of the companies in the same industry.
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 Quick ratio of 1.00. This is in the lower half of the industry: 1ADBE underperforms 69.30% 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 | 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.
1ADBE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.53%.
The Revenue has been growing by 13.06% on average over the past years. This is quite good.
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.
1ADBE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.36% yearly.
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
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.
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
Based on the Price/Earnings ratio of 15.70, the valuation of 1ADBE can be described as correct.
Based on the Price/Earnings ratio, 1ADBE is valued cheaper than 85.96% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1ADBE to the average of the S&P500 Index (26.92), we can say 1ADBE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.72, the valuation of 1ADBE can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1ADBE indicates a rather cheap valuation: 1ADBE is cheaper than 85.96% of the companies listed in the same industry.
1ADBE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 13.72 |
4.2 Price Multiples
68.42% 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 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.97 | ||
| EV/EBITDA | 14.29 |
4.3 Compensation for Growth
The 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 (1/5/2026, 7:00:00 PM)
281.45
-17.9 (-5.98%)
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 Cap117.81B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts79.13
Price Target380.16 (35.07%)
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 | 15.7 | ||
| Fwd PE | 13.72 | ||
| P/S | 5.79 | ||
| P/FCF | 13.97 | ||
| P/OCF | 13.72 | ||
| P/B | 11.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.29 |
EPS(TTM)17.93
EY6.37%
EPS(NY)20.51
Fwd EY7.29%
FCF(TTM)20.14
FCFY7.16%
OCF(TTM)20.51
OCFY7.29%
SpS48.6
BVpS23.76
TBVpS-3.54
PEG (NY)1.09
PEG (5Y)0.99
Graham Number97.91
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 | 8.55 |
F-Score7
WACC10.89%
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 15.7 and the Price/Book (PB) ratio is 11.84.