ADOBE INC (1ADBE.MI) Stock Fundamental Analysis
BIT:1ADBE • US00724F1012
213.4 EUR
-3.2 (-1.48%)
Last: Feb 12, 2026, 07:00 PM
1ADBE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 118 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 may be a bit undervalued, certainly considering the very reasonable score on growth 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.
- 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 94.26% of its industry peers.
- 1ADBE has a better Return On Equity (61.34%) than 95.90% of its industry peers.
- With an excellent Return On Invested Capital value of 36.51%, 1ADBE belongs to the best of the industry, outperforming 98.36% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1ADBE is significantly above the industry average of 12.80%.
- 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 has a better Profit Margin (30.00%) than 89.34% 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 94.26% of its industry peers.
- 1ADBE's Operating Margin has been stable in the last couple of years.
- 1ADBE's Gross Margin of 89.27% is amongst the best of the industry. 1ADBE outperforms 86.07% 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%
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.
- 1ADBE has less shares outstanding than it did 1 year ago.
- 1ADBE has less shares outstanding than it did 5 years ago.
- 1ADBE has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 7.42 indicates that 1ADBE is not in any danger for bankruptcy at the moment.
- 1ADBE has a Altman-Z score of 7.42. This is amongst the best in the industry. 1ADBE outperforms 86.89% 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's Debt to FCF ratio of 0.63 is amongst the best of the industry. 1ADBE outperforms 84.43% 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.
- The Debt to Equity ratio of 1ADBE (0.53) is worse than 63.93% 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 | 7.42 |
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.
- 1ADBE has a worse Current ratio (1.00) than 68.03% 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 68.03% 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.
- 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
- 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.
- Based on estimates for the next years, 1ADBE will show a quite strong growth in Revenue. The Revenue will grow by 8.02% on average per year.
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
- A Price/Earnings ratio of 12.08 indicates a correct valuation of 1ADBE.
- 88.52% 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 rather cheap valuation when compared to the S&P500 average which is at 26.68.
- With a Price/Forward Earnings ratio of 10.56, the valuation of 1ADBE can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, 1ADBE is valued cheaper than 88.52% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of 1ADBE to the average of the S&P500 Index (28.06), we can say 1ADBE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 10.56 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1ADBE is valued a bit cheaper than the industry average as 75.41% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, 1ADBE is valued cheaply inside the industry as 90.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.55 | ||
| EV/EBITDA | 10.75 |
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.
- The excellent profitability rating of 1ADBE 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.
PEG (NY)0.84
PEG (5Y)0.76
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 (2/12/2026, 7:00:00 PM)
213.4
-3.2 (-1.48%)
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 Cap87.60B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts75.65
Price Target368.18 (72.53%)
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)-3.15%
PT rev (3m)-9.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.32%
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 | 12.08 | ||
| Fwd PE | 10.56 | ||
| P/S | 4.37 | ||
| P/FCF | 10.55 | ||
| P/OCF | 10.36 | ||
| P/B | 8.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.75 |
EPS(TTM)17.66
EY8.28%
EPS(NY)20.2
Fwd EY9.47%
FCF(TTM)20.23
FCFY9.48%
OCF(TTM)20.6
OCFY9.65%
SpS48.81
BVpS23.87
TBVpS-3.55
PEG (NY)0.84
PEG (5Y)0.76
Graham Number97.39
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 | 7.42 |
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 Y14.37%
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 12.08 and the Price/Book (PB) ratio is 8.94.