ADOBE INC (ADB.DE) Stock Fundamental Analysis
Europe - FRA:ADB - US00724F1012 - Common Stock
271.675 EUR
-3.22 (-1.17%)
ADB gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 107 industry peers in the Software industry. ADB gets an excellent profitability rating and is at the same time showing great financial health properties. ADB is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make ADB suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
ADB had positive earnings in the past year.
ADB had a positive operating cash flow in the past year.
Each year in the past 5 years ADB has been profitable.
ADB 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%, ADB belongs to the best of the industry, outperforming 95.33% of the companies in the same industry.
With an excellent Return On Equity value of 59.11%, ADB belongs to the best of the industry, outperforming 95.33% of the companies in the same industry.
ADB has a better Return On Invested Capital (34.45%) than 95.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADB is significantly above the industry average of 13.52%.
The last Return On Invested Capital (34.45%) for ADB is above the 3 year average (27.26%), which is a sign of increasing profitability.
| 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
The Profit Margin of ADB (30.01%) is better than 88.78% of its industry peers.
ADB's Profit Margin has been stable in the last couple of years.
ADB's Operating Margin of 36.25% is amongst the best of the industry. ADB outperforms 92.52% of its industry peers.
ADB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 89.14%, ADB belongs to the top of the industry, outperforming 85.98% of the companies in the same industry.
In the last couple of years the Gross Margin of ADB has remained more or less at the same level.
| 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
ADB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ADB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ADB has less shares outstanding
The debt/assets ratio for ADB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.58 indicates that ADB is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.58, ADB belongs to the best of the industry, outperforming 88.78% of the companies in the same industry.
The Debt to FCF ratio of ADB is 0.65, which is an excellent value as it means it would take ADB, only 0.65 years of fcf income to pay off all of its debts.
ADB has a better Debt to FCF ratio (0.65) than 86.92% of its industry peers.
ADB has a Debt/Equity ratio of 0.53. This is a neutral value indicating ADB is somewhat dependend on debt financing.
The Debt to Equity ratio of ADB (0.53) is worse than 64.49% of its industry peers.
Even though the debt/equity ratio score it not favorable for ADB, 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 | 8.58 |
ROIC/WACC3.16
WACC10.9%
2.3 Liquidity
A Current Ratio of 1.02 indicates that ADB should not have too much problems paying its short term obligations.
With a Current ratio value of 1.02, ADB is not doing good in the industry: 68.22% of the companies in the same industry are doing better.
ADB has a Quick Ratio of 1.02. This is a normal value and indicates that ADB is financially healthy and should not expect problems in meeting its short term obligations.
ADB has a Quick ratio of 1.02. This is in the lower half of the industry: ADB underperforms 65.42% of its industry peers.
ADB 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 | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.31% over the past year.
ADB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.69% yearly.
The Revenue has grown by 10.67% in the past year. This is quite good.
Measured over the past years, ADB 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
ADB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.20% yearly.
Based on estimates for the next years, ADB will show a quite strong growth in Revenue. The Revenue will grow by 8.95% on average per year.
EPS Next Y15.35%
EPS Next 2Y13.74%
EPS Next 3Y13.35%
EPS Next 5Y11.2%
Revenue Next Year10.46%
Revenue Next 2Y9.86%
Revenue Next 3Y9.64%
Revenue Next 5Y8.95%
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
The Price/Earnings ratio is 15.44, which indicates a correct valuation of ADB.
ADB's Price/Earnings ratio is rather cheap when compared to the industry. ADB is cheaper than 87.85% of the companies in the same industry.
When comparing the Price/Earnings ratio of ADB to the average of the S&P500 Index (25.07), we can say ADB is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.13, ADB is valued correctly.
85.05% of the companies in the same industry are more expensive than ADB, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, ADB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 13.13 |
4.2 Price Multiples
ADB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADB is cheaper than 67.29% of the companies in the same industry.
ADB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADB is cheaper than 86.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.64 | ||
| EV/EBITDA | 14.24 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ADB may justify a higher PE ratio.
A more expensive valuation may be justified as ADB's earnings are expected to grow with 13.35% in the coming years.
PEG (NY)1.01
PEG (5Y)0.83
EPS Next 2Y13.74%
EPS Next 3Y13.35%
5. Dividend
5.1 Amount
ADB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:ADB (11/21/2025, 1:46:50 PM)
271.675
-3.22 (-1.17%)
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 Cap113.72B
Revenue(TTM)23.18B
Net Income(TTM)6.96B
Analysts78.72
Price Target405.59 (49.29%)
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)1.21%
PT rev (3m)-8.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 13.13 | ||
| P/S | 5.65 | ||
| P/FCF | 13.64 | ||
| P/OCF | 13.37 | ||
| P/B | 11.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.24 |
EPS(TTM)17.6
EY6.48%
EPS(NY)20.7
Fwd EY7.62%
FCF(TTM)19.92
FCFY7.33%
OCF(TTM)20.32
OCFY7.48%
SpS48.1
BVpS24.42
TBVpS-3.42
PEG (NY)1.01
PEG (5Y)0.83
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 | 8.58 |
F-Score7
WACC10.9%
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 Y15.35%
EPS Next 2Y13.74%
EPS Next 3Y13.35%
EPS Next 5Y11.2%
Revenue 1Y (TTM)10.67%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.72%
Revenue Next Year10.46%
Revenue Next 2Y9.86%
Revenue Next 3Y9.64%
Revenue Next 5Y8.95%
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 / ADB.DE FAQ
Can you provide the ChartMill fundamental rating for ADOBE INC?
ChartMill assigns a fundamental rating of 7 / 10 to ADB.DE.
Can you provide the valuation status for ADOBE INC?
ChartMill assigns a valuation rating of 7 / 10 to ADOBE INC (ADB.DE). This can be considered as Undervalued.
Can you provide the profitability details for ADOBE INC?
ADOBE INC (ADB.DE) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for ADB stock?
The Price/Earnings (PE) ratio for ADOBE INC (ADB.DE) is 15.44 and the Price/Book (PB) ratio is 11.12.
What is the expected EPS growth for ADOBE INC (ADB.DE) stock?
The Earnings per Share (EPS) of ADOBE INC (ADB.DE) is expected to grow by 15.35% in the next year.