ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
Europe - BIT:1ADBE - US00724F1012 - Common Stock
291 EUR
-14.5 (-4.75%)
We assign a fundamental rating of 7 out of 10 to 1ADBE. 1ADBE was compared to 103 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 could make 1ADBE a good candidate for value and quality investing.
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.
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
With an excellent Return On Assets value of 24.19%, 1ADBE belongs to the best of the industry, outperforming 96.12% of the companies in the same industry.
1ADBE has a better Return On Equity (59.11%) than 96.12% of its industry peers.
1ADBE has a Return On Invested Capital of 34.45%. This is amongst the best in the industry. 1ADBE outperforms 97.09% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1ADBE is significantly above the industry average of 12.76%.
The 3 year average ROIC (27.26%) for 1ADBE is below the current ROIC(34.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.19% | ||
| ROE | 59.11% | ||
| ROIC | 34.46% |
ROA(3y)18.04%
ROA(5y)18.7%
ROE(3y)35.38%
ROE(5y)35.67%
ROIC(3y)27.26%
ROIC(5y)24.7%
1.3 Margins
Looking at the Profit Margin, with a value of 30.01%, 1ADBE belongs to the top of the industry, outperforming 90.29% of the companies in the same industry.
1ADBE's Profit Margin has been stable in the last couple of years.
1ADBE has a better Operating Margin (36.25%) than 93.20% of its industry peers.
In the last couple of years the Operating Margin of 1ADBE has grown nicely.
Looking at the Gross Margin, with a value of 89.14%, 1ADBE belongs to the top of the industry, outperforming 85.44% of the companies in the same industry.
1ADBE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.25% | ||
| PM (TTM) | 30.01% | ||
| GM | 89.14% |
OM growth 3Y-0.69%
OM growth 5Y3.18%
PM growth 3Y-5.41%
PM growth 5Y-0.43%
GM growth 3Y0.32%
GM growth 5Y0.93%
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
1ADBE has less shares outstanding than it did 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 8.85. 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 8.85, 1ADBE belongs to the top of the industry, outperforming 85.44% of the companies in the same industry.
1ADBE has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
The Debt to FCF ratio of 1ADBE (0.65) is better than 87.38% 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 worse Debt to Equity ratio (0.53) than 67.96% 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 | 0.65 | ||
| Altman-Z | 8.85 |
ROIC/WACC3.16
WACC10.92%
2.3 Liquidity
1ADBE has a Current Ratio of 1.02. This is a normal value and indicates that 1ADBE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.02, 1ADBE is doing worse than 66.99% of the companies in the same industry.
1ADBE has a Quick Ratio of 1.02. This is a normal value and indicates that 1ADBE is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.02, 1ADBE is not doing good in the industry: 66.02% of the companies in the same industry are doing better.
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 | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
1ADBE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.31%, which is quite good.
1ADBE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.69% yearly.
Looking at the last year, 1ADBE shows a quite strong growth in Revenue. The Revenue has grown by 10.67% in the last year.
Measured over the past years, 1ADBE shows a quite strong growth in Revenue. The Revenue has been growing by 14.00% on average per year.
EPS 1Y (TTM)13.31%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%14.19%
Revenue 1Y (TTM)10.67%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.72%
3.2 Future
The Earnings Per Share is expected to grow by 10.15% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.91% on average over the next years. This is quite good.
EPS Next Y15.36%
EPS Next 2Y13.81%
EPS Next 3Y13.48%
EPS Next 5Y10.15%
Revenue Next Year10.43%
Revenue Next 2Y9.84%
Revenue Next 3Y9.63%
Revenue Next 5Y8.91%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 16.53, the valuation of 1ADBE can be described as correct.
90.29% of the companies in the same industry are more expensive than 1ADBE, based on the Price/Earnings ratio.
1ADBE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.51.
1ADBE is valuated correctly with a Price/Forward Earnings ratio of 14.04.
Based on the Price/Forward Earnings ratio, 1ADBE is valued cheaply inside the industry as 86.41% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.53, 1ADBE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 14.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ADBE is valued a bit cheaper than 68.93% of the companies in the same industry.
83.50% 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 | 14.61 | ||
| EV/EBITDA | 15.08 |
4.3 Compensation for Growth
1ADBE's 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 13.48% in the coming years.
PEG (NY)1.08
PEG (5Y)0.88
EPS Next 2Y13.81%
EPS Next 3Y13.48%
5. Dividend
5.1 Amount
No dividends for 1ADBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1ADBE (11/3/2025, 7:00:00 PM)
291
-14.5 (-4.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.03%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap121.81B
Revenue(TTM)23.18B
Net Income(TTM)6.96B
Analysts78.72
Price Target406.5 (39.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0.24%
Min EPS beat(2)-0.06%
Max EPS beat(2)0.55%
EPS beat(4)3
Avg EPS beat(4)0.45%
Min EPS beat(4)-0.06%
Max EPS beat(4)1.15%
EPS beat(8)7
Avg EPS beat(8)0.5%
EPS beat(12)11
Avg EPS beat(12)0.67%
EPS beat(16)11
Avg EPS beat(16)0.26%
Revenue beat(2)0
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-0.6%
Max Revenue beat(2)-0.56%
Revenue beat(4)0
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-0.99%
Max Revenue beat(4)-0.56%
Revenue beat(8)0
Avg Revenue beat(8)-1.08%
Revenue beat(12)0
Avg Revenue beat(12)-1.21%
Revenue beat(16)0
Avg Revenue beat(16)-1.27%
PT rev (1m)-0.23%
PT rev (3m)-6.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.06%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 14.04 | ||
| P/S | 6.05 | ||
| P/FCF | 14.61 | ||
| P/OCF | 14.32 | ||
| P/B | 11.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.08 |
EPS(TTM)17.6
EY6.05%
EPS(NY)20.72
Fwd EY7.12%
FCF(TTM)19.92
FCFY6.84%
OCF(TTM)20.32
OCFY6.98%
SpS48.1
BVpS24.42
TBVpS-3.42
PEG (NY)1.08
PEG (5Y)0.88
Graham Number98.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.19% | ||
| ROE | 59.11% | ||
| ROCE | 43.05% | ||
| ROIC | 34.46% | ||
| ROICexc | 49.53% | ||
| ROICexgc | 4255.63% | ||
| OM | 36.25% | ||
| PM (TTM) | 30.01% | ||
| GM | 89.14% | ||
| FCFM | 41.41% |
ROA(3y)18.04%
ROA(5y)18.7%
ROE(3y)35.38%
ROE(5y)35.67%
ROIC(3y)27.26%
ROIC(5y)24.7%
ROICexc(3y)43%
ROICexc(5y)37.74%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)34.07%
ROCE(5y)30.87%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y17.87%
ROICexc growth 5Y9.83%
OM growth 3Y-0.69%
OM growth 5Y3.18%
PM growth 3Y-5.41%
PM growth 5Y-0.43%
GM growth 3Y0.32%
GM growth 5Y0.93%
F-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 22.65% | ||
| Cap/Sales | 0.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.81% | ||
| Profit Quality | 137.98% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 8.85 |
F-Score7
WACC10.92%
ROIC/WACC3.16
Cap/Depr(3y)38.09%
Cap/Depr(5y)42.76%
Cap/Sales(3y)1.74%
Cap/Sales(5y)2.14%
Profit Quality(3y)141.67%
Profit Quality(5y)133.73%
High Growth Momentum
Growth
EPS 1Y (TTM)13.31%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%14.19%
EPS Next Y15.36%
EPS Next 2Y13.81%
EPS Next 3Y13.48%
EPS Next 5Y10.15%
Revenue 1Y (TTM)10.67%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.72%
Revenue Next Year10.43%
Revenue Next 2Y9.84%
Revenue Next 3Y9.63%
Revenue Next 5Y8.91%
EBIT growth 1Y11.62%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year17.42%
EBIT Next 3Y11.33%
EBIT Next 5Y10.2%
FCF growth 1Y25.87%
FCF growth 3Y4.59%
FCF growth 5Y14.35%
OCF growth 1Y21.94%
OCF growth 3Y3.67%
OCF growth 5Y12.75%
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 16.53 and the Price/Book (PB) ratio is 11.92.
Can you provide the financial health for 1ADBE stock?
The financial health rating of ADOBE INC (1ADBE.MI) is 8 / 10.