ADOBE INC (ADB.DE) Stock Fundamental Analysis
Europe - FRA:ADB - US00724F1012 - Common Stock
280.25 EUR
+0.3 (+0.11%)
ADB gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 107 industry peers in the Software industry. ADB has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ADB scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, ADB could be worth investigating further 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.
In the past 5 years ADB has always been profitable.
In the past 5 years ADB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 24.19%, ADB belongs to the top of the industry, outperforming 94.39% of the companies in the same industry.
ADB has a Return On Equity of 59.11%. This is amongst the best in the industry. ADB outperforms 94.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 34.45%, ADB belongs to the top of the industry, outperforming 94.39% of the companies in the same industry.
ADB had an Average Return On Invested Capital over the past 3 years of 27.26%. This 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 87.85% of its industry peers.
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 91.59% of its industry peers.
In the last couple of years the Operating Margin of ADB has grown nicely.
With an excellent Gross Margin value of 89.14%, ADB belongs to the best of the industry, outperforming 85.05% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ADB is creating value.
ADB has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ADB has been reduced compared to 5 years ago.
Compared to 1 year ago, ADB has a worse debt to assets ratio.
2.2 Solvency
ADB has an Altman-Z score of 8.69. This indicates that ADB is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.69, ADB belongs to the top of the industry, outperforming 89.72% of the companies in the same industry.
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 85.98% 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.
Looking at the Debt to Equity ratio, with a value of 0.53, ADB is doing worse than 65.42% of the companies in the same industry.
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 | 8.69 |
ROIC/WACC3.16
WACC10.92%
2.3 Liquidity
ADB has a Current 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.
Looking at the Current ratio, with a value of 1.02, ADB is doing worse than 69.16% of the companies in the same industry.
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 worse Quick ratio (1.02) than 66.36% 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
ADB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.31%, which is quite good.
Measured over the past years, ADB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.69% on average per year.
The Revenue has grown by 10.67% in the past year. This is quite good.
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
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.
The Revenue is expected to grow by 8.95% on average over the next years. This is quite good.
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
With a Price/Earnings ratio of 16.03, ADB is valued correctly.
86.92% of the companies in the same industry are more expensive than ADB, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.51, ADB is valued a bit cheaper.
ADB is valuated correctly with a Price/Forward Earnings ratio of 13.63.
Based on the Price/Forward Earnings ratio, ADB is valued cheaply inside the industry as 85.05% of the companies are valued more expensively.
ADB is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.03 | ||
| Fwd PE | 13.63 |
4.2 Price Multiples
64.49% of the companies in the same industry are more expensive than ADB, based on the Enterprise Value to EBITDA ratio.
ADB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADB is cheaper than 85.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.16 | ||
| EV/EBITDA | 14.6 |
4.3 Compensation for Growth
ADB's 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.
ADB's earnings are expected to grow with 13.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.04
PEG (5Y)0.86
EPS Next 2Y13.74%
EPS Next 3Y13.35%
5. Dividend
5.1 Amount
No dividends for ADB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:ADB (11/19/2025, 10:13:56 AM)
280.25
+0.3 (+0.11%)
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 Cap117.31B
Revenue(TTM)23.18B
Net Income(TTM)6.96B
Analysts78.72
Price Target405.59 (44.72%)
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 | 16.03 | ||
| Fwd PE | 13.63 | ||
| P/S | 5.87 | ||
| P/FCF | 14.16 | ||
| P/OCF | 13.89 | ||
| P/B | 11.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.6 |
EPS(TTM)17.48
EY6.24%
EPS(NY)20.56
Fwd EY7.34%
FCF(TTM)19.79
FCFY7.06%
OCF(TTM)20.18
OCFY7.2%
SpS47.78
BVpS24.26
TBVpS-3.39
PEG (NY)1.04
PEG (5Y)0.86
Graham Number97.68
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 | 8.69 |
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 Y15.35%
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 16.03 and the Price/Book (PB) ratio is 11.55.
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.