ADOBE INC (ADB.DE) Stock Fundamental Analysis
Europe - FRA:ADB - US00724F1012 - Common Stock
306.1 EUR
+1.25 (+0.41%)
Overall ADB gets a fundamental rating of 7 out of 10. We evaluated ADB against 111 industry peers in the Software industry. Both the health and profitability get an excellent rating, making ADB a very profitable company, without any liquidiy or solvency issues. ADB may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make ADB a good candidate 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.
ADB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ADB (24.19%) is better than 96.40% of its industry peers.
ADB has a better Return On Equity (59.11%) than 94.59% of its industry peers.
ADB has a better Return On Invested Capital (34.45%) than 97.30% of its industry peers.
ADB had an Average Return On Invested Capital over the past 3 years of 27.26%. This is significantly above the industry average of 12.85%.
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
ADB has a Profit Margin of 30.01%. This is amongst the best in the industry. ADB outperforms 89.19% of its industry peers.
ADB's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 36.25%, ADB belongs to the best of the industry, outperforming 91.89% of the companies in the same industry.
ADB's Operating Margin has improved in the last couple of years.
ADB has a Gross Margin of 89.14%. This is amongst the best in the industry. ADB outperforms 87.39% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ADB is creating value.
Compared to 1 year ago, ADB has less shares outstanding
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 9.13 indicates that ADB is not in any danger for bankruptcy at the moment.
The Altman-Z score of ADB (9.13) is better than 84.68% 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.
ADB has a Debt to FCF ratio of 0.65. This is amongst the best in the industry. ADB outperforms 86.49% 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.
With a Debt to Equity ratio value of 0.53, ADB is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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 | 9.13 |
ROIC/WACC3.17
WACC10.87%
2.3 Liquidity
A Current Ratio of 1.02 indicates that ADB should not have too much problems paying its short term obligations.
ADB has a worse Current ratio (1.02) than 65.77% of its industry peers.
A Quick Ratio of 1.02 indicates that ADB should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.02, ADB is doing worse than 63.96% of the companies in the same industry.
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.
The Earnings Per Share has been growing by 18.69% on average over the past years. This is quite good.
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
ADB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.15% yearly.
The Revenue is expected to grow by 8.91% on average over the next years. This is quite good.
EPS Next Y15.36%
EPS Next 2Y13.81%
EPS Next 3Y13.48%
EPS Next 5Y10.15%
Revenue Next Year10.43%
Revenue Next 2Y9.84%
Revenue Next 3Y9.63%
Revenue Next 5Y8.91%
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
ADB is valuated rather expensively with a Price/Earnings ratio of 17.54.
Compared to the rest of the industry, the Price/Earnings ratio of ADB indicates a rather cheap valuation: ADB is cheaper than 89.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, ADB is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.90, the valuation of ADB can be described as correct.
Based on the Price/Forward Earnings ratio, ADB is valued cheaper than 83.78% of the companies in the same industry.
ADB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.54 | ||
| Fwd PE | 14.9 |
4.2 Price Multiples
66.67% 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 82.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.5 | ||
| EV/EBITDA | 15.94 |
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 13.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)0.94
EPS Next 2Y13.81%
EPS Next 3Y13.48%
5. Dividend
5.1 Amount
No dividends for ADB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:ADB (10/27/2025, 7:00:00 PM)
306.1
+1.25 (+0.41%)
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 Cap128.13B
Revenue(TTM)23.18B
Net Income(TTM)6.96B
Analysts78.72
Price Target400.73 (30.91%)
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)-2.15%
PT rev (3m)-8.45%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)1.06%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.54 | ||
| Fwd PE | 14.9 | ||
| P/S | 6.42 | ||
| P/FCF | 15.5 | ||
| P/OCF | 15.19 | ||
| P/B | 12.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.94 |
EPS(TTM)17.45
EY5.7%
EPS(NY)20.55
Fwd EY6.71%
FCF(TTM)19.75
FCFY6.45%
OCF(TTM)20.14
OCFY6.58%
SpS47.69
BVpS24.21
TBVpS-3.39
PEG (NY)1.14
PEG (5Y)0.94
Graham Number97.5
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 | 9.13 |
F-Score7
WACC10.87%
ROIC/WACC3.17
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 Y15.36%
EPS Next 2Y13.81%
EPS Next 3Y13.48%
EPS Next 5Y10.15%
Revenue 1Y (TTM)10.67%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.72%
Revenue Next Year10.43%
Revenue Next 2Y9.84%
Revenue Next 3Y9.63%
Revenue Next 5Y8.91%
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 17.54 and the Price/Book (PB) ratio is 12.64.
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 15.36% in the next year.