ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
BIT:1ADBE • US00724F1012
218.85 EUR
-0.6 (-0.27%)
Last: Feb 27, 2026, 07:00 PM
1ADBE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 116 industry peers in the Software industry. Both the health and profitability get an excellent rating, making 1ADBE a very profitable company, without any liquidiy or solvency issues. 1ADBE is valued quite cheap, while showing a decent growth score. This is a good 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.
- 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
- 1ADBE's Return On Assets of 24.17% is amongst the best of the industry. 1ADBE outperforms 94.64% of its industry peers.
- The Return On Equity of 1ADBE (61.34%) is better than 97.32% of its industry peers.
- 1ADBE's Return On Invested Capital of 36.51% is amongst the best of the industry. 1ADBE outperforms 98.21% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1ADBE is significantly above the industry average of 12.58%.
- 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 90.18% of its industry peers.
- In the last couple of years the Profit Margin of 1ADBE has declined.
- 1ADBE's Operating Margin of 36.63% is amongst the best of the industry. 1ADBE outperforms 93.75% of its industry peers.
- 1ADBE's Operating Margin has been stable in the last couple of years.
- With an excellent Gross Margin value of 89.27%, 1ADBE belongs to the best of the industry, outperforming 85.71% 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
- 1ADBE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
- An Altman-Z score of 7.49 indicates that 1ADBE is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 7.49, 1ADBE belongs to the top of the industry, outperforming 87.50% 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.
- The Debt to FCF ratio of 1ADBE (0.63) is better than 82.14% 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: 66.96% 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 | 7.49 |
ROIC/WACC3.37
WACC10.82%
2.3 Liquidity
- A Current Ratio of 1.00 indicates that 1ADBE may have some problems paying its short term obligations.
- With a Current ratio value of 1.00, 1ADBE is not doing good in the industry: 70.54% of the companies in the same industry are doing better.
- 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 70.54% 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 |
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.
- The Earnings Per Share has been growing by 15.87% on average over the past years. This is quite good.
- The Revenue has grown by 10.53% in the past year. This is quite good.
- The Revenue has been growing by 13.06% on average over the past years. This is quite good.
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
- 1ADBE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.91% yearly.
- The Revenue is expected to grow by 8.02% on average over the next years. This is quite good.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 12.33, the valuation of 1ADBE can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of 1ADBE indicates a rather cheap valuation: 1ADBE is cheaper than 91.07% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.07, 1ADBE is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 10.78, the valuation of 1ADBE can be described as reasonable.
- Based on the Price/Forward Earnings ratio, 1ADBE is valued cheaper than 88.39% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.05. 1ADBE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 10.78 |
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 73.21% 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 90.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.76 | ||
| EV/EBITDA | 10.97 |
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.
- 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
- No dividends for 1ADBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1ADBE (2/27/2026, 7:00:00 PM)
218.85
-0.6 (-0.27%)
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 Cap89.84B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts75.65
Price Target358.89 (63.99%)
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)-4.65%
PT rev (3m)-11.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.46%
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 | 12.33 | ||
| Fwd PE | 10.78 | ||
| P/S | 4.46 | ||
| P/FCF | 10.76 | ||
| P/OCF | 10.57 | ||
| P/B | 9.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.97 |
EPS(TTM)17.75
EY8.11%
EPS(NY)20.3
Fwd EY9.27%
FCF(TTM)20.33
FCFY9.29%
OCF(TTM)20.7
OCFY9.46%
SpS49.05
BVpS23.98
TBVpS-3.57
PEG (NY)0.86
PEG (5Y)0.78
Graham Number97.87
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 | 7.49 |
F-Score7
WACC10.82%
ROIC/WACC3.37
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 12.33 and the Price/Book (PB) ratio is 9.12.