ADOBE INC (1ADBE.MI) Stock Fundamental Analysis

Europe • Euronext Milan • BIT:1ADBE • US00724F1012

247.2 EUR

+6.85 (+2.85%)

Last: Jan 30, 2026, 07:00 PM

Fundamental Rating

Overall 1ADBE gets a fundamental rating of 7 out of 10. We evaluated 1ADBE against 115 industry peers in the Software industry. 1ADBE gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on 1ADBE. These ratings would make 1ADBE suitable for value and quality investing!

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1. Profitability

1.1 Basic Checks

1ADBE had positive earnings in the past year.
In the past year 1ADBE had a positive cash flow from operations.
In the past 5 years 1ADBE has always been profitable.
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 93.04% of its industry peers.
With an excellent Return On Equity value of 61.34%, 1ADBE belongs to the best of the industry, outperforming 93.91% of the companies in the same industry.
The Return On Invested Capital of 1ADBE (36.51%) is better than 96.52% 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 13.06%.
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 89.57% 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 93.04% of its industry peers.
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 86.09% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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
1ADBE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1ADBE is higher compared to a year ago.

2.2 Solvency

1ADBE has an Altman-Z score of 8.07. This indicates that 1ADBE is financially healthy and has little risk of bankruptcy at the moment.
1ADBE has a Altman-Z score of 8.07. This is amongst the best in the industry. 1ADBE outperforms 84.35% 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.
1ADBE has a Debt to FCF ratio of 0.63. This is amongst the best in the industry. 1ADBE outperforms 85.22% 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.
Looking at the Debt to Equity ratio, with a value of 0.53, 1ADBE is doing worse than 66.09% of the companies in the same industry.
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	8.07

ROIC/WACC3.3

WACC11.05%

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 70.43% of its industry peers.
A Quick Ratio of 1.00 indicates that 1ADBE may have some problems paying its short term obligations.
1ADBE has a Quick ratio of 1.00. This is in the lower half of the industry: 1ADBE underperforms 69.57% 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

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 13.74% over the past year.
1ADBE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.87% yearly.
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 9.91% on average per year.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 14.06, the valuation of 1ADBE can be described as correct.
86.96% of the companies in the same industry are more expensive than 1ADBE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.32. 1ADBE is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 12.30, which indicates a correct valuation of 1ADBE.
Based on the Price/Forward Earnings ratio, 1ADBE is valued cheaply inside the industry as 87.83% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 25.57. 1ADBE is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	14.06
Fwd PE	12.3

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, 1ADBE is valued a bit cheaper than 71.30% 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 87.83% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	12.52
EV/EBITDA	12.79

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.
1ADBE's earnings are expected to grow with 12.14% in the coming years. This may justify a more expensive valuation.