ADOBE INC (ADB.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADB - US00724F1012 - Common Stock
285.8 EUR
-6.6 (-2.26%)
We assign a fundamental rating of 7 out of 10 to ADB. ADB was compared to 125 industry peers in the Software industry. ADB gets an excellent profitability rating and is at the same time showing great financial health properties. ADB is valued quite cheap, while showing a decent growth score. This is a good 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.
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's Return On Assets of 24.17% is amongst the best of the industry. ADB outperforms 94.40% of its industry peers.
ADB has a better Return On Equity (61.34%) than 95.20% of its industry peers.
ADB's Return On Invested Capital of 36.51% is amongst the best of the industry. ADB outperforms 97.60% of its industry peers.
ADB had an Average Return On Invested Capital over the past 3 years of 31.10%. This is significantly above the industry average of 12.89%.
The last Return On Invested Capital (36.51%) for ADB is above the 3 year average (31.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.17% | ||
| ROE | 61.34% | ||
| ROIC | 36.51% |
ROA(3y)20.26%
ROA(5y)19.2%
ROE(3y)44.54%
ROE(5y)40.01%
ROIC(3y)31.1%
ROIC(5y)28.47%
1.3 Margins
ADB has a better Profit Margin (30.00%) than 90.40% of its industry peers.
In the last couple of years the Profit Margin of ADB has declined.
ADB has a Operating Margin of 36.63%. This is amongst the best in the industry. ADB outperforms 94.40% of its industry peers.
In the last couple of years the Operating Margin of ADB has remained more or less at the same level.
ADB's Gross Margin of 89.27% is amongst the best of the industry. ADB outperforms 87.20% 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 | 36.63% | ||
| PM (TTM) | 30% | ||
| GM | 89.27% |
OM growth 3Y1.88%
OM growth 5Y1.28%
PM growth 3Y3.55%
PM growth 5Y-6%
GM growth 3Y0.59%
GM growth 5Y0.6%
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.
ADB has less shares outstanding than it did 5 years ago.
ADB has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.61 indicates that ADB is not in any danger for bankruptcy at the moment.
ADB has a Altman-Z score of 8.61. This is amongst the best in the industry. ADB outperforms 84.00% of its industry peers.
ADB has a debt to FCF ratio of 0.63. This is a very positive value and a sign of high solvency as it would only need 0.63 years to pay back of all of its debts.
ADB has a Debt to FCF ratio of 0.63. This is amongst the best in the industry. ADB outperforms 83.20% 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.
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 66.40% 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 | 0.63 | ||
| Altman-Z | 8.61 |
ROIC/WACC3.33
WACC10.95%
2.3 Liquidity
ADB has a Current Ratio of 1.00. 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 1.00. This is in the lower half of the industry: ADB underperforms 71.20% of its industry peers.
ADB has a Quick Ratio of 1.00. 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 Quick ratio of 1.00. This is in the lower half of the industry: ADB underperforms 70.40% 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 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
ADB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.74%, which is quite good.
The Earnings Per Share has been growing by 15.87% on average over the past years. This is quite good.
The Revenue has grown by 10.53% in the past year. This is quite good.
Measured over the past years, ADB shows a quite strong growth in Revenue. The Revenue has been growing by 13.06% on average per year.
EPS 1Y (TTM)13.74%
EPS 3Y15.15%
EPS 5Y15.87%
EPS Q2Q%14.35%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y10.52%
Revenue growth 5Y13.06%
Sales Q2Q%10.49%
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 9.91% yearly.
The Revenue is expected to grow by 8.02% on average over the next years. This is quite good.
EPS Next Y14.38%
EPS Next 2Y13.69%
EPS Next 3Y12.98%
EPS Next 5Y9.91%
Revenue Next Year9.9%
Revenue Next 2Y9.55%
Revenue Next 3Y9.43%
Revenue Next 5Y8.02%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
With a Price/Earnings ratio of 15.88, ADB is valued correctly.
86.40% of the companies in the same industry are more expensive than ADB, based on the Price/Earnings ratio.
ADB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 13.89 indicates a correct valuation of ADB.
Based on the Price/Forward Earnings ratio, ADB is valued cheaply inside the industry as 87.20% of the companies are valued more expensively.
ADB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.88 | ||
| Fwd PE | 13.89 |
4.2 Price Multiples
70.40% of the companies in the same industry are more expensive than ADB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ADB is valued cheaply inside the industry as 87.20% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.14 | ||
| EV/EBITDA | 14.46 |
4.3 Compensation for Growth
The 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 12.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)1
EPS Next 2Y13.69%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
ADB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:ADB (1/9/2026, 7:00:00 PM)
285.8
-6.6 (-2.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.02%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap119.64B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts78.7
Price Target383.32 (34.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0.25%
Min EPS beat(2)-0.04%
Max EPS beat(2)0.55%
EPS beat(4)2
Avg EPS beat(4)0.15%
Min EPS beat(4)-0.06%
Max EPS beat(4)0.55%
EPS beat(8)6
Avg EPS beat(8)0.35%
EPS beat(12)10
Avg EPS beat(12)0.6%
EPS beat(16)11
Avg EPS beat(16)0.38%
Revenue beat(2)0
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-0.6%
Max Revenue beat(2)-0.59%
Revenue beat(4)0
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-0.99%
Max Revenue beat(4)-0.56%
Revenue beat(8)0
Avg Revenue beat(8)-0.95%
Revenue beat(12)0
Avg Revenue beat(12)-1.09%
Revenue beat(16)0
Avg Revenue beat(16)-1.22%
PT rev (1m)-3.18%
PT rev (3m)-4.34%
EPS NQ rev (1m)3.51%
EPS NQ rev (3m)3.29%
EPS NY rev (1m)0.55%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.88 | ||
| Fwd PE | 13.89 | ||
| P/S | 5.86 | ||
| P/FCF | 14.14 | ||
| P/OCF | 13.88 | ||
| P/B | 11.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.46 |
EPS(TTM)18
EY6.3%
EPS(NY)20.58
Fwd EY7.2%
FCF(TTM)20.22
FCFY7.07%
OCF(TTM)20.58
OCFY7.2%
SpS48.77
BVpS23.85
TBVpS-3.55
PEG (NY)1.1
PEG (5Y)1
Graham Number98.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.17% | ||
| ROE | 61.34% | ||
| ROCE | 45.12% | ||
| ROIC | 36.51% | ||
| ROICexc | 55.47% | ||
| ROICexgc | N/A | ||
| OM | 36.63% | ||
| PM (TTM) | 30% | ||
| GM | 89.27% | ||
| FCFM | 41.45% |
ROA(3y)20.26%
ROA(5y)19.2%
ROE(3y)44.54%
ROE(5y)40.01%
ROIC(3y)31.1%
ROIC(5y)28.47%
ROICexc(3y)49.26%
ROICexc(5y)43.65%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)38.43%
ROCE(5y)35.18%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y13.31%
ROICexc growth 5Y14.65%
OM growth 3Y1.88%
OM growth 5Y1.28%
PM growth 3Y3.55%
PM growth 5Y-6%
GM growth 3Y0.59%
GM growth 5Y0.6%
F-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 0.63 | ||
| Debt/EBITDA | 0.65 | ||
| Cap/Depr | 21.88% | ||
| Cap/Sales | 0.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.32% | ||
| Profit Quality | 138.18% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 8.61 |
F-Score7
WACC10.95%
ROIC/WACC3.33
Cap/Depr(3y)28.17%
Cap/Depr(5y)36.06%
Cap/Sales(3y)1.15%
Cap/Sales(5y)1.63%
Profit Quality(3y)135.89%
Profit Quality(5y)141.18%
High Growth Momentum
Growth
EPS 1Y (TTM)13.74%
EPS 3Y15.15%
EPS 5Y15.87%
EPS Q2Q%14.35%
EPS Next Y14.38%
EPS Next 2Y13.69%
EPS Next 3Y12.98%
EPS Next 5Y9.91%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y10.52%
Revenue growth 5Y13.06%
Sales Q2Q%10.49%
Revenue Next Year9.9%
Revenue Next 2Y9.55%
Revenue Next 3Y9.43%
Revenue Next 5Y8.02%
EBIT growth 1Y12.47%
EBIT growth 3Y12.6%
EBIT growth 5Y14.5%
EBIT Next Year13.32%
EBIT Next 3Y10.22%
EBIT Next 5Y9.3%
FCF growth 1Y25.14%
FCF growth 3Y10.03%
FCF growth 5Y13.17%
OCF growth 1Y24.52%
OCF growth 3Y8.57%
OCF growth 5Y11.86%
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.
What is the valuation status for ADB stock?
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 15.88 and the Price/Book (PB) ratio is 11.98.
How financially healthy is ADOBE INC?
The financial health rating of ADOBE INC (ADB.DE) is 7 / 10.