ADOBE INC (ADB.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADB - US00724F1012 - Common Stock
305.95 EUR
+12.25 (+4.17%)
Overall ADB gets a fundamental rating of 7 out of 10. We evaluated ADB against 113 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 is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, ADB could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year ADB was profitable.
In the past year ADB had a positive cash flow from operations.
ADB had positive earnings in each of the past 5 years.
Each year in the past 5 years ADB had a positive operating cash flow.
1.2 Ratios
ADB has a Return On Assets of 24.19%. This is amongst the best in the industry. ADB outperforms 95.58% of its industry peers.
ADB has a Return On Equity of 59.11%. This is amongst the best in the industry. ADB outperforms 96.46% of its industry peers.
ADB's Return On Invested Capital of 34.45% is amongst the best of the industry. ADB outperforms 97.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ADB is significantly above the industry average of 13.33%.
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
The Profit Margin of ADB (30.01%) is better than 88.50% of its industry peers.
ADB's Profit Margin has been stable in the last couple of years.
ADB's Operating Margin of 36.25% is amongst the best of the industry. ADB outperforms 92.92% of its industry peers.
ADB's Operating Margin has improved in the last couple of years.
The Gross Margin of ADB (89.14%) is better than 86.73% 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.
Compared to 1 year ago, ADB has less shares outstanding
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 8.98. This indicates that ADB is financially healthy and has little risk of bankruptcy at the moment.
ADB has a Altman-Z score of 8.98. This is amongst the best in the industry. ADB outperforms 85.84% 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 better Debt to FCF ratio (0.65) than 85.84% of its industry peers.
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 66.37% 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 | 8.98 |
ROIC/WACC3.19
WACC10.79%
2.3 Liquidity
A Current Ratio of 1.02 indicates that ADB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.02, ADB is doing worse than 69.03% 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 69.03% 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.
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%.
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)13.31%
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
Based on estimates for the next years, ADB will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.20% on average per year.
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 2Y13.75%
EPS Next 3Y13.35%
EPS Next 5Y11.2%
Revenue Next Year10.46%
Revenue Next 2Y9.89%
Revenue Next 3Y9.65%
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
A Price/Earnings ratio of 17.68 indicates a rather expensive valuation of ADB.
Based on the Price/Earnings ratio, ADB is valued cheaply inside the industry as 86.73% of the companies are valued more expensively.
ADB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.76.
ADB is valuated correctly with a Price/Forward Earnings ratio of 15.04.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADB indicates a rather cheap valuation: ADB is cheaper than 87.61% of the companies listed in the same industry.
ADB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.68 | ||
| Fwd PE | 15.04 |
4.2 Price Multiples
67.26% of the companies in the same industry are more expensive than ADB, based on the Enterprise Value to EBITDA ratio.
84.96% of the companies in the same industry are more expensive than ADB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.63 | ||
| EV/EBITDA | 15.49 |
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.
ADB's earnings are expected to grow with 13.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)0.95
EPS Next 2Y13.75%
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 (12/12/2025, 5:29:23 PM)
305.95
+12.25 (+4.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners85.97%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap128.07B
Revenue(TTM)23.18B
Net Income(TTM)6.96B
Analysts79.13
Price Target395.91 (29.4%)
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)-2.95%
PT rev (3m)-8.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)0%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.68 | ||
| Fwd PE | 15.04 | ||
| P/S | 6.47 | ||
| P/FCF | 15.63 | ||
| P/OCF | 15.32 | ||
| P/B | 12.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.49 |
EPS(TTM)17.3
EY5.65%
EPS(NY)20.34
Fwd EY6.65%
FCF(TTM)19.58
FCFY6.4%
OCF(TTM)19.97
OCFY6.53%
SpS47.27
BVpS24
TBVpS-3.36
PEG (NY)1.15
PEG (5Y)0.95
Graham Number96.66
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 | 8.98 |
F-Score7
WACC10.79%
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 2Y13.75%
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 2Y9.89%
Revenue Next 3Y9.65%
Revenue Next 5Y8.95%
EBIT growth 1Y11.62%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year17.01%
EBIT Next 3Y10.74%
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 17.68 and the Price/Book (PB) ratio is 12.75.
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.