ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
BIT:1ADBE • US00724F1012
220.3 EUR
+1.05 (+0.48%)
Last: Feb 18, 2026, 07:00 PM
Overall 1ADBE gets a fundamental rating of 7 out of 10. We evaluated 1ADBE against 117 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make 1ADBE a good candidate 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.
- In the past 5 years 1ADBE has always been profitable.
- Each year in the past 5 years 1ADBE had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of 1ADBE (24.17%) is better than 94.02% 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 96.58% 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 98.29% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1ADBE is significantly above the industry average of 13.32%.
- 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's Profit Margin of 30.00% is amongst the best of the industry. 1ADBE outperforms 89.74% of its industry peers.
- 1ADBE's Profit Margin has declined in the last couple of years.
- 1ADBE has a better Operating Margin (36.63%) than 94.02% 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 86.32% 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.
- 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
- 1ADBE has an Altman-Z score of 7.50. This indicates that 1ADBE is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 7.50, 1ADBE belongs to the best of the industry, outperforming 87.18% of the companies in the same industry.
- 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.
- 1ADBE has a better Debt to FCF ratio (0.63) than 83.76% of its industry peers.
- A Debt/Equity ratio of 0.53 indicates that 1ADBE is somewhat dependend on debt financing.
- 1ADBE has a Debt to Equity ratio of 0.53. This is in the lower half of the industry: 1ADBE underperforms 65.81% 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/WACC3.34
WACC10.92%
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.
- Looking at the Current ratio, with a value of 1.00, 1ADBE is doing worse than 69.23% of the companies in the same industry.
- A Quick Ratio of 1.00 indicates that 1ADBE may have some problems paying its short term obligations.
- 1ADBE has a worse Quick ratio (1.00) than 69.23% 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
- The Earnings Per Share has grown by an nice 13.74% over the past year.
- 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
- 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
- 1ADBE is valuated correctly with a Price/Earnings ratio of 12.36.
- 1ADBE's Price/Earnings ratio is rather cheap when compared to the industry. 1ADBE is cheaper than 88.89% of the companies in the same industry.
- 1ADBE is valuated cheaply when we compare the Price/Earnings ratio to 27.09, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 10.81 indicates a reasonable valuation of 1ADBE.
- Based on the Price/Forward Earnings ratio, 1ADBE is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
- 1ADBE is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.36 | ||
| Fwd PE | 10.81 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1ADBE is valued a bit cheaper than 73.50% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ADBE indicates a rather cheap valuation: 1ADBE is cheaper than 90.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.79 | ||
| EV/EBITDA | 11 |
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.
- 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 12.14% 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 (2/18/2026, 7:00:00 PM)
220.3
+1.05 (+0.48%)
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 Cap90.43B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts75.65
Price Target368.18 (67.13%)
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)-3.15%
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 | 12.36 | ||
| Fwd PE | 10.81 | ||
| P/S | 4.47 | ||
| P/FCF | 10.79 | ||
| P/OCF | 10.6 | ||
| P/B | 9.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11 |
EPS(TTM)17.83
EY8.09%
EPS(NY)20.39
Fwd EY9.25%
FCF(TTM)20.42
FCFY9.27%
OCF(TTM)20.79
OCFY9.44%
SpS49.27
BVpS24.09
TBVpS-3.58
PEG (NY)0.86
PEG (5Y)0.78
Graham Number98.31
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
WACC10.92%
ROIC/WACC3.34
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 12.36 and the Price/Book (PB) ratio is 9.14.