ADOBE INC (ADB.DE) Stock Fundamental Analysis
FRA:ADB - Deutsche Boerse Ag - US00724F1012 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to ADB. ADB was compared to 99 industry peers in the Software industry. ADB scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ADB is not valued too expensively and it also shows a decent growth rate. This makes ADB very considerable for quality investing!
1. Profitability
1.1 Basic Checks
ADB had positive earnings in the past year.
In the past year ADB had a positive cash flow from operations.
ADB had positive earnings in each of the past 5 years.
ADB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 18.39%, ADB belongs to the top of the industry, outperforming 97.98% of the companies in the same industry.
ADB has a better Return On Equity (39.42%) than 93.94% of its industry peers.
ADB has a Return On Invested Capital of 31.43%. This is amongst the best in the industry. ADB outperforms 98.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ADB is significantly above the industry average of 11.50%.
The 3 year average ROIC (27.26%) for ADB is below the current ROIC(31.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.39% | ||
| ROE | 39.42% | ||
| ROIC | 31.43% |
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
With an excellent Profit Margin value of 25.85%, ADB belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
ADB's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 36.00%, ADB belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
In the last couple of years the Operating Margin of ADB has grown nicely.
With an excellent Gross Margin value of 89.04%, ADB belongs to the best of the industry, outperforming 85.86% 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% | ||
| PM (TTM) | 25.85% | ||
| GM | 89.04% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ADB is creating value.
ADB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ADB has less shares outstanding
The debt/assets ratio for ADB is higher compared to a year ago.
2.2 Solvency
ADB has an Altman-Z score of 10.57. This indicates that ADB is financially healthy and has little risk of bankruptcy at the moment.
ADB's Altman-Z score of 10.57 is amongst the best of the industry. ADB outperforms 91.92% of its industry peers.
ADB has a debt to FCF ratio of 0.71. This is a very positive value and a sign of high solvency as it would only need 0.71 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.71, ADB belongs to the best of the industry, outperforming 82.83% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that ADB is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.29, ADB perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.71 | ||
| Altman-Z | 10.57 |
ROIC/WACC2.27
WACC13.84%
2.3 Liquidity
A Current Ratio of 1.07 indicates that ADB should not have too much problems paying its short term obligations.
With a Current ratio value of 1.07, ADB is not doing good in the industry: 62.63% of the companies in the same industry are doing better.
ADB has a Quick Ratio of 1.07. This is a normal value and indicates that ADB is financially healthy and should not expect problems in meeting its short term obligations.
ADB's Quick ratio of 1.07 is in line compared to the rest of the industry. ADB outperforms 41.41% 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 | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
ADB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.62%, which is quite good.
The Earnings Per Share has been growing by 18.69% on average over the past years. This is quite good.
Looking at the last year, ADB shows a quite strong growth in Revenue. The Revenue has grown by 10.80% in the last year.
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)14.62%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%12.65%
Revenue 1Y (TTM)10.8%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%11.05%
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 11.62% yearly.
ADB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.40% yearly.
EPS Next Y13%
EPS Next 2Y13%
EPS Next 3Y12.51%
EPS Next 5Y11.62%
Revenue Next Year9.58%
Revenue Next 2Y9.85%
Revenue Next 3Y9.64%
Revenue Next 5Y9.4%
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
ADB is valuated rather expensively with a Price/Earnings ratio of 24.16.
Compared to the rest of the industry, the Price/Earnings ratio of ADB indicates a rather cheap valuation: ADB is cheaper than 81.82% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, ADB is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.39, the valuation of ADB can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ADB is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.10. ADB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.16 | ||
| Fwd PE | 21.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADB is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ADB is valued a bit cheaper than 76.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.59 | ||
| EV/EBITDA | 22.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 12.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.86
PEG (5Y)1.29
EPS Next 2Y13%
EPS Next 3Y12.51%
5. Dividend
5.1 Amount
ADB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:ADB (3/7/2025, 7:00:00 PM)
410.05
-6.25 (-1.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners85.27%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap178.33B
Analysts80
Price Target555.42 (35.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.91%
Min EPS beat(2)0.66%
Max EPS beat(2)1.15%
EPS beat(4)4
Avg EPS beat(4)0.54%
Min EPS beat(4)0.06%
Max EPS beat(4)1.15%
EPS beat(8)8
Avg EPS beat(8)0.82%
EPS beat(12)9
Avg EPS beat(12)0.45%
EPS beat(16)12
Avg EPS beat(16)1.31%
Revenue beat(2)0
Avg Revenue beat(2)-1.01%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)-0.78%
Revenue beat(4)0
Avg Revenue beat(4)-1.22%
Min Revenue beat(4)-1.65%
Max Revenue beat(4)-0.78%
Revenue beat(8)0
Avg Revenue beat(8)-1.29%
Revenue beat(12)0
Avg Revenue beat(12)-1.4%
Revenue beat(16)2
Avg Revenue beat(16)-1.02%
PT rev (1m)-2.6%
PT rev (3m)-7.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.16 | ||
| Fwd PE | 21.39 | ||
| P/S | 9 | ||
| P/FCF | 24.59 | ||
| P/OCF | 24.03 | ||
| P/B | 13.73 | ||
| P/tB | 361.9 | ||
| EV/EBITDA | 22.22 |
EPS(TTM)16.97
EY4.14%
EPS(NY)19.17
Fwd EY4.68%
FCF(TTM)16.67
FCFY4.07%
OCF(TTM)17.06
OCFY4.16%
SpS45.54
BVpS29.87
TBVpS1.13
PEG (NY)1.86
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.39% | ||
| ROE | 39.42% | ||
| ROCE | 39.28% | ||
| ROIC | 31.43% | ||
| ROICexc | 52.4% | ||
| ROICexgc | N/A | ||
| OM | 36% | ||
| PM (TTM) | 25.85% | ||
| GM | 89.04% | ||
| FCFM | 36.61% |
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 Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.71 | ||
| Debt/EBITDA | 0.48 | ||
| Cap/Depr | 21.35% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 82.35 | ||
| Cash Conversion | 93.7% | ||
| Profit Quality | 141.6% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 10.57 |
F-Score7
WACC13.84%
ROIC/WACC2.27
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)14.62%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%12.65%
EPS Next Y13%
EPS Next 2Y13%
EPS Next 3Y12.51%
EPS Next 5Y11.62%
Revenue 1Y (TTM)10.8%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%11.05%
Revenue Next Year9.58%
Revenue Next 2Y9.85%
Revenue Next 3Y9.64%
Revenue Next 5Y9.4%
EBIT growth 1Y16.41%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year16.33%
EBIT Next 3Y11.72%
EBIT Next 5Y9.91%
FCF growth 1Y13.41%
FCF growth 3Y4.59%
FCF growth 5Y14.35%
OCF growth 1Y10.33%
OCF growth 3Y3.67%
OCF growth 5Y12.75%