ADOBE INC (ADB.DE) Stock Fundamental Analysis
Europe - FRA:ADB - US00724F1012 - Common Stock
282.45 EUR
+2.1 (+0.75%)
Taking everything into account, ADB scores 7 out of 10 in our fundamental rating. ADB was compared to 111 industry peers in the Software industry. ADB gets an excellent profitability rating and is at the same time showing great financial health properties. ADB scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make ADB suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year ADB was profitable.
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 97.30% 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 96.40% of its industry peers.
ADB has a better Return On Invested Capital (34.45%) than 97.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ADB is significantly above the industry average of 12.66%.
The 3 year average ROIC (27.26%) for ADB is below the current ROIC(34.45%), indicating increased profibility in the last year.
| 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
ADB has a Profit Margin of 30.01%. This is amongst the best in the industry. ADB outperforms 88.29% of its industry peers.
In the last couple of years the Profit Margin of ADB has remained more or less at the same level.
ADB's Operating Margin of 36.25% is amongst the best of the industry. ADB outperforms 92.79% of its industry peers.
ADB's Operating Margin has improved in the last couple of years.
ADB's Gross Margin of 89.14% is amongst the best of the industry. ADB outperforms 86.49% 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 | 36.25% | ||
| 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.
The number of shares outstanding for ADB has been reduced compared to 1 year ago.
ADB has less shares outstanding than it did 5 years ago.
ADB has a worse debt/assets ratio than last year.
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.
The Altman-Z score of ADB (8.69) is better than 86.49% 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 86.49% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that ADB is somewhat dependend on debt financing.
ADB's Debt to Equity ratio of 0.53 is on the low side compared to the rest of the industry. ADB is outperformed by 67.57% 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 | 8.69 |
ROIC/WACC3.19
WACC10.8%
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 65.77% 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 Quick ratio of 1.02. This is in the lower half of the industry: ADB underperforms 64.86% 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 | 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.
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.
ADB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.67%.
The Revenue has been growing by 14.00% on average over the past years. This is quite good.
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
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.
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
Based on the Price/Earnings ratio of 16.12, the valuation of ADB can be described as correct.
Based on the Price/Earnings ratio, ADB is valued cheaper than 89.19% of the companies in the same industry.
ADB is valuated rather cheaply when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.70, the valuation of ADB can be described as correct.
ADB's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADB is cheaper than 88.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ADB to the average of the S&P500 Index (33.61), we can say ADB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.12 | ||
| Fwd PE | 13.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADB indicates a somewhat cheap valuation: ADB is cheaper than 68.47% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ADB is valued cheaply inside the industry as 86.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.24 | ||
| EV/EBITDA | 14.59 |
4.3 Compensation for Growth
The 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 13.35% in the coming years.
PEG (NY)1.05
PEG (5Y)0.86
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 (11/10/2025, 7:00:00 PM)
282.45
+2.1 (+0.75%)
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 Cap118.23B
Revenue(TTM)23.18B
Net Income(TTM)6.96B
Analysts78.72
Price Target407.94 (44.43%)
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)1.8%
PT rev (3m)-8.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.06%
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 | 16.12 | ||
| Fwd PE | 13.7 | ||
| P/S | 5.9 | ||
| P/FCF | 14.24 | ||
| P/OCF | 13.96 | ||
| P/B | 11.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.59 |
EPS(TTM)17.52
EY6.2%
EPS(NY)20.61
Fwd EY7.3%
FCF(TTM)19.84
FCFY7.02%
OCF(TTM)20.23
OCFY7.16%
SpS47.9
BVpS24.32
TBVpS-3.4
PEG (NY)1.05
PEG (5Y)0.86
Graham Number97.92
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
WACC10.8%
ROIC/WACC3.19
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 16.12 and the Price/Book (PB) ratio is 11.61.
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.