ADOBE INC (ADB.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADB - US00724F1012 - Common Stock
277.45 EUR
+2.05 (+0.74%)
ADB gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 114 industry peers in the Software industry. ADB scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
In the past 5 years ADB always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 24.19%, ADB belongs to the best of the industry, outperforming 93.86% of the companies in the same industry.
ADB has a better Return On Equity (59.11%) than 95.61% of its industry peers.
ADB's Return On Invested Capital of 34.45% is amongst the best of the industry. ADB outperforms 95.61% 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 13.10%.
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
With an excellent Profit Margin value of 30.01%, ADB belongs to the best of the industry, outperforming 87.72% of the companies in the same industry.
ADB's Profit Margin has been stable in the last couple of years.
ADB has a Operating Margin of 36.25%. This is amongst the best in the industry. ADB outperforms 92.11% of its industry peers.
In the last couple of years the Operating Margin of ADB has grown nicely.
ADB has a Gross Margin of 89.14%. This is amongst the best in the industry. ADB outperforms 85.96% of its industry peers.
ADB'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
ADB 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 ADB has been reduced compared to 1 year ago.
The number of shares outstanding for ADB has been reduced compared to 5 years ago.
The debt/assets ratio for ADB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.61 indicates that ADB is not in any danger for bankruptcy at the moment.
The Altman-Z score of ADB (8.61) is better than 89.47% of its industry peers.
ADB 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.
ADB has a Debt to FCF ratio of 0.65. This is amongst the best in the industry. ADB outperforms 85.96% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that ADB is somewhat dependend on debt financing.
The Debt to Equity ratio of ADB (0.53) is worse than 64.91% of its industry peers.
Although ADB 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 | 0.65 | ||
| Altman-Z | 8.61 |
ROIC/WACC3.18
WACC10.84%
2.3 Liquidity
A Current Ratio of 1.02 indicates that ADB should not have too much problems paying its short term obligations.
ADB's Current ratio of 1.02 is on the low side compared to the rest of the industry. ADB is outperformed by 66.67% of its industry peers.
A Quick Ratio of 1.02 indicates that ADB should not have too much problems paying its short term obligations.
The Quick ratio of ADB (1.02) is worse than 65.79% 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.
ADB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.67%.
ADB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.00% yearly.
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 11.20% on average over the next years. This is quite good.
ADB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.95% yearly.
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.
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
With a Price/Earnings ratio of 15.86, ADB is valued correctly.
Based on the Price/Earnings ratio, ADB is valued cheaper than 87.72% of the companies in the same industry.
When comparing the Price/Earnings ratio of ADB to the average of the S&P500 Index (26.31), we can say ADB is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.49, the valuation of ADB can be described as correct.
Based on the Price/Forward Earnings ratio, ADB is valued cheaply inside the industry as 86.84% of the companies are valued more expensively.
ADB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.86 | ||
| Fwd PE | 13.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADB is valued a bit cheaper than 67.54% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADB indicates a rather cheap valuation: ADB is cheaper than 85.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.02 | ||
| EV/EBITDA | 14.36 |
4.3 Compensation for Growth
ADB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ADB has an outstanding profitability rating, which may justify a higher PE ratio.
ADB's earnings are expected to grow with 13.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)0.85
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 (11/28/2025, 7:00:00 PM)
277.45
+2.05 (+0.74%)
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 Cap116.14B
Revenue(TTM)23.18B
Net Income(TTM)6.96B
Analysts78.72
Price Target407.09 (46.73%)
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)1.59%
PT rev (3m)-6.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.86 | ||
| Fwd PE | 13.49 | ||
| P/S | 5.8 | ||
| P/FCF | 14.02 | ||
| P/OCF | 13.74 | ||
| P/B | 11.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.36 |
EPS(TTM)17.49
EY6.3%
EPS(NY)20.57
Fwd EY7.41%
FCF(TTM)19.79
FCFY7.13%
OCF(TTM)20.19
OCFY7.28%
SpS47.8
BVpS24.27
TBVpS-3.4
PEG (NY)1.03
PEG (5Y)0.85
Graham Number97.73
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 | 8.61 |
F-Score7
WACC10.84%
ROIC/WACC3.18
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 15.86 and the Price/Book (PB) ratio is 11.43.
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.