ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ADBE - US00724F1012 - Common Stock
301.2 EUR
+2.75 (+0.92%)
Taking everything into account, 1ADBE scores 7 out of 10 in our fundamental rating. 1ADBE was compared to 105 industry peers in the Software industry. 1ADBE gets an excellent profitability rating and is at the same time showing great financial health properties. 1ADBE scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
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 93.97% 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 95.69% of its industry peers.
With an excellent Return On Invested Capital value of 36.51%, 1ADBE belongs to the best of the industry, outperforming 97.41% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1ADBE is significantly above the industry average of 13.30%.
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
1ADBE has a Profit Margin of 30.00%. This is amongst the best in the industry. 1ADBE outperforms 87.93% of its industry peers.
1ADBE's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 36.63%, 1ADBE belongs to the best of the industry, outperforming 92.24% of the companies in the same industry.
1ADBE's Operating Margin has been stable in the last couple of years.
1ADBE has a Gross Margin of 89.27%. This is amongst the best in the industry. 1ADBE outperforms 84.48% of its industry peers.
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
1ADBE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, 1ADBE has less shares outstanding
Compared to 5 years ago, 1ADBE has less shares outstanding
The debt/assets ratio for 1ADBE is higher compared to a year ago.
2.2 Solvency
1ADBE has an Altman-Z score of 8.92. This indicates that 1ADBE is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.92, 1ADBE belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
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 has a Debt to FCF ratio of 0.63. This is amongst the best in the industry. 1ADBE outperforms 85.34% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that 1ADBE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, 1ADBE is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
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 | 8.92 |
ROIC/WACC3.34
WACC10.94%
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.
The Current ratio of 1ADBE (1.00) is worse than 69.83% 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.
Looking at the Quick ratio, with a value of 1.00, 1ADBE is doing worse than 69.83% of the companies in the same industry.
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.
Looking at the last year, 1ADBE shows a quite strong growth in Revenue. The Revenue has grown by 10.53% in the last year.
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
Based on estimates for the next years, 1ADBE will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.26% 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 8.36% on average per year.
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.
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
With a Price/Earnings ratio of 16.95, 1ADBE is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of 1ADBE indicates a rather cheap valuation: 1ADBE is cheaper than 84.48% of the companies listed in the same industry.
1ADBE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.82, 1ADBE is valued correctly.
Based on the Price/Forward Earnings ratio, 1ADBE is valued cheaper than 84.48% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1ADBE to the average of the S&P500 Index (23.46), we can say 1ADBE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 14.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1ADBE indicates a somewhat cheap valuation: 1ADBE is cheaper than 63.79% of the companies listed in the same industry.
1ADBE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 1ADBE is cheaper than 84.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.08 | ||
| EV/EBITDA | 15.44 |
4.3 Compensation for Growth
The 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 12.98% in the coming years.
PEG (NY)1.18
PEG (5Y)1.07
EPS Next 2Y13.69%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
No dividends for 1ADBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1ADBE (12/23/2025, 7:00:00 PM)
301.2
+2.75 (+0.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners85.97%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap126.08B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts79.13
Price Target380.16 (26.22%)
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)3.43%
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)0.6%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 14.82 | ||
| P/S | 6.25 | ||
| P/FCF | 15.08 | ||
| P/OCF | 14.82 | ||
| P/B | 12.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.44 |
EPS(TTM)17.77
EY5.9%
EPS(NY)20.33
Fwd EY6.75%
FCF(TTM)19.97
FCFY6.63%
OCF(TTM)20.33
OCFY6.75%
SpS48.17
BVpS23.56
TBVpS-3.5
PEG (NY)1.18
PEG (5Y)1.07
Graham Number97.05
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 | 8.92 |
F-Score7
WACC10.94%
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 Y14.38%
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.
Can you provide the valuation status for ADOBE INC?
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.
Can you provide the PE and PB ratios for 1ADBE stock?
The Price/Earnings (PE) ratio for ADOBE INC (1ADBE.MI) is 16.95 and the Price/Book (PB) ratio is 12.79.
Can you provide the financial health for 1ADBE stock?
The financial health rating of ADOBE INC (1ADBE.MI) is 7 / 10.