ADOBE INC (ADB.DE) Stock Fundamental Analysis
FRA:ADB - Deutsche Boerse Ag - US00724F1012 - Common Stock - Currency: EUR
ADB gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 101 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 has a decent growth rate and is not valued too expensively. This makes ADB very considerable for 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
ADB's Return On Assets of 24.44% is amongst the best of the industry. ADB outperforms 98.02% of its industry peers.
The Return On Equity of ADB (60.00%) is better than 95.05% of its industry peers.
With an excellent Return On Invested Capital value of 34.50%, ADB belongs to the best of the industry, outperforming 98.02% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ADB is significantly above the industry average of 10.93%.
The 3 year average ROIC (27.26%) for ADB is below the current ROIC(34.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.44% | ||
| ROE | 60% | ||
| ROIC | 34.5% |
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 (30.39%) is better than 95.05% of its industry peers.
ADB's Profit Margin has been stable in the last couple of years.
ADB has a Operating Margin of 36.37%. This is amongst the best in the industry. ADB outperforms 96.04% of its industry peers.
In the last couple of years the Operating Margin of ADB has grown nicely.
ADB has a Gross Margin of 89.25%. This is amongst the best in the industry. ADB outperforms 86.14% of its industry peers.
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 | 36.37% | ||
| PM (TTM) | 30.39% | ||
| GM | 89.25% |
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.
The number of shares outstanding for ADB has been reduced compared to 1 year ago.
Compared to 5 years ago, ADB has less shares outstanding
ADB has a worse debt/assets ratio than last year.
2.2 Solvency
ADB has an Altman-Z score of 9.74. This indicates that ADB is financially healthy and has little risk of bankruptcy at the moment.
ADB has a Altman-Z score of 9.74. This is amongst the best in the industry. ADB outperforms 88.12% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 0.65, ADB belongs to the best of the industry, outperforming 86.14% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that ADB is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.54, ADB perfoms like the industry average, outperforming 40.59% of the companies in the same industry.
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 | 0.54 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 9.74 |
ROIC/WACC3.2
WACC10.77%
2.3 Liquidity
ADB has a Current Ratio of 0.99. This is a bad value and indicates that ADB is not financially healthy enough and could expect problems in meeting its short term obligations.
ADB has a Current ratio of 0.99. This is in the lower half of the industry: ADB underperforms 65.35% of its industry peers.
A Quick Ratio of 0.99 indicates that ADB may have some problems paying its short term obligations.
ADB has a worse Quick ratio (0.99) than 64.36% of its industry peers.
The current and quick ratio evaluation for ADB is rather negative, while it does have 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 | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
ADB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.16%, which is quite good.
ADB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.69% yearly.
Looking at the last year, ADB shows a quite strong growth in Revenue. The Revenue has grown by 10.63% in the last year.
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)13.16%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%12.95%
Revenue 1Y (TTM)10.63%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.62%
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 11.03% yearly.
The Revenue is expected to grow by 9.28% on average over the next years. This is quite good.
EPS Next Y14.24%
EPS Next 2Y13.33%
EPS Next 3Y13.28%
EPS Next 5Y11.03%
Revenue Next Year9.89%
Revenue Next 2Y9.67%
Revenue Next 3Y9.65%
Revenue Next 5Y9.28%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
ADB is valuated rather expensively with a Price/Earnings ratio of 19.58.
88.12% of the companies in the same industry are more expensive than ADB, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. ADB is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.22 indicates a correct valuation of ADB.
Based on the Price/Forward Earnings ratio, ADB is valued a bit cheaper than 79.21% of the companies in the same industry.
ADB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 16.22 |
4.2 Price Multiples
ADB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADB is cheaper than 63.37% 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 83.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.33 | ||
| EV/EBITDA | 18.71 |
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.
A more expensive valuation may be justified as ADB's earnings are expected to grow with 13.28% in the coming years.
PEG (NY)1.37
PEG (5Y)1.05
EPS Next 2Y13.33%
EPS Next 3Y13.28%
5. Dividend
5.1 Amount
No dividends for ADB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:ADB (7/9/2025, 1:11:18 PM)
327.55
-0.15 (-0.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.09%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap139.60B
Analysts80
Price Target448.05 (36.79%)
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)0.06%
Min EPS beat(2)-0.06%
Max EPS beat(2)0.18%
EPS beat(4)3
Avg EPS beat(4)0.48%
Min EPS beat(4)-0.06%
Max EPS beat(4)1.15%
EPS beat(8)7
Avg EPS beat(8)0.53%
EPS beat(12)10
Avg EPS beat(12)0.62%
EPS beat(16)11
Avg EPS beat(16)0.3%
Revenue beat(2)0
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)-0.56%
Revenue beat(4)0
Avg Revenue beat(4)-0.89%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)-0.56%
Revenue beat(8)0
Avg Revenue beat(8)-1.2%
Revenue beat(12)0
Avg Revenue beat(12)-1.32%
Revenue beat(16)0
Avg Revenue beat(16)-1.29%
PT rev (1m)-0.69%
PT rev (3m)-8.6%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-0.18%
EPS NY rev (1m)1.32%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 16.22 | ||
| P/S | 7.24 | ||
| P/FCF | 17.33 | ||
| P/OCF | 17.01 | ||
| P/B | 14.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.71 |
EPS(TTM)16.73
EY5.11%
EPS(NY)20.19
Fwd EY6.16%
FCF(TTM)18.9
FCFY5.77%
OCF(TTM)19.25
OCFY5.88%
SpS45.25
BVpS22.92
TBVpS-4.03
PEG (NY)1.37
PEG (5Y)1.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.44% | ||
| ROE | 60% | ||
| ROCE | 43.11% | ||
| ROIC | 34.5% | ||
| ROICexc | 34.5% | ||
| ROICexgc | 117.34% | ||
| OM | 36.37% | ||
| PM (TTM) | 30.39% | ||
| GM | 89.25% | ||
| FCFM | 41.75% |
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%
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 20.77% | ||
| Cap/Sales | 0.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.92% | ||
| Profit Quality | 137.39% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 9.74 |
F-Score7
WACC10.77%
ROIC/WACC3.2
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)13.16%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%12.95%
EPS Next Y14.24%
EPS Next 2Y13.33%
EPS Next 3Y13.28%
EPS Next 5Y11.03%
Revenue 1Y (TTM)10.63%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.62%
Revenue Next Year9.89%
Revenue Next 2Y9.67%
Revenue Next 3Y9.65%
Revenue Next 5Y9.28%
EBIT growth 1Y13.68%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year16.09%
EBIT Next 3Y11.14%
EBIT Next 5Y10.02%
FCF growth 1Y27.13%
FCF growth 3Y4.59%
FCF growth 5Y14.35%
OCF growth 1Y22.31%
OCF growth 3Y3.67%
OCF growth 5Y12.75%