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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1ADBE is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, 1ADBE could be worth investigating further for value and quality investing!.

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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 has a Return On Assets of 24.17%. This is amongst the best in the industry. 1ADBE outperforms 92.98% of its industry peers.
The Return On Equity of 1ADBE (61.34%) is better than 93.86% of its industry peers.
The Return On Invested Capital of 1ADBE (36.51%) is better than 96.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1ADBE is significantly above the industry average of 13.49%.
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 90.35% 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 92.98% of its industry peers.
In the last couple of years the Operating Margin of 1ADBE has remained more or less at the same level.
1ADBE has a Gross Margin of 89.27%. This is amongst the best in the industry. 1ADBE outperforms 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%

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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.
The number of shares outstanding for 1ADBE has been reduced compared to 1 year ago.
The number of shares outstanding for 1ADBE has been reduced compared to 5 years ago.
Compared to 1 year ago, 1ADBE has a worse debt to assets ratio.

2.2 Solvency

1ADBE has an Altman-Z score of 7.97. 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 7.97, 1ADBE belongs to the top of the industry, outperforming 82.46% 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's Debt to FCF ratio of 0.63 is amongst the best of the industry. 1ADBE outperforms 85.09% 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.
1ADBE has a Debt to Equity ratio of 0.53. This is in the lower half of the industry: 1ADBE underperforms 66.67% 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	7.97

ROIC/WACC3.32

WACC11%

2.3 Liquidity

A Current Ratio of 1.00 indicates that 1ADBE may have some problems paying its short term obligations.
1ADBE has a worse Current ratio (1.00) than 70.18% of its industry peers.
A Quick Ratio of 1.00 indicates that 1ADBE may have some problems paying its short term obligations.
1ADBE's Quick ratio of 1.00 is on the low side compared to the rest of the industry. 1ADBE is outperformed by 69.30% 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.
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

The Earnings Per Share is expected to grow by 9.91% 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 8.02% 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 14.12, the valuation of 1ADBE can be described as correct.
87.72% of the companies in the same industry are more expensive than 1ADBE, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.30, 1ADBE is valued rather cheaply.
The Price/Forward Earnings ratio is 12.35, which indicates a correct valuation of 1ADBE.
1ADBE's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1ADBE is cheaper than 87.72% of the companies in the same industry.
1ADBE is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	14.12
Fwd PE	12.35

4.2 Price Multiples

71.05% of the companies in the same industry are more expensive than 1ADBE, based on the Enterprise Value to EBITDA ratio.
87.72% of the companies in the same industry are more expensive than 1ADBE, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	12.57
EV/EBITDA	12.48

4.3 Compensation for Growth

The 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.