ADOBE INC (ADB.DE) Stock Fundamental Analysis
FRA:ADB - Deutsche Boerse Ag - US00724F1012 - Common Stock - Currency: EUR
Taking everything into account, ADB scores 7 out of 10 in our fundamental rating. ADB was compared to 94 industry peers in the Software industry. ADB has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ADB has a correct valuation and a medium growth rate. These ratings could make ADB a good candidate for 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.
Each year in the past 5 years ADB has been profitable.
In the past 5 years ADB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 22.54%, ADB belongs to the top of the industry, outperforming 97.87% of the companies in the same industry.
Looking at the Return On Equity, with a value of 51.55%, ADB belongs to the top of the industry, outperforming 95.74% of the companies in the same industry.
The Return On Invested Capital of ADB (30.78%) is better than 97.87% 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 11.00%.
The last Return On Invested Capital (30.78%) for ADB is above the 3 year average (27.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.54% | ||
| ROE | 51.55% | ||
| ROIC | 30.78% |
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 better Profit Margin (30.63%) than 91.49% of its industry peers.
ADB's Profit Margin has been stable in the last couple of years.
ADB has a better Operating Margin (36.29%) than 94.68% of its industry peers.
In the last couple of years the Operating Margin of ADB has grown nicely.
The Gross Margin of ADB (89.15%) is better than 86.17% of its industry peers.
ADB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.29% | ||
| PM (TTM) | 30.63% | ||
| GM | 89.15% |
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.
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 9.11 indicates that ADB is not in any danger for bankruptcy at the moment.
ADB has a better Altman-Z score (9.11) than 90.43% of its industry peers.
The Debt to FCF ratio of ADB is 0.67, which is an excellent value as it means it would take ADB, only 0.67 years of fcf income to pay off all of its debts.
ADB has a better Debt to FCF ratio (0.67) than 82.98% of its industry peers.
ADB has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.47, ADB is not doing good in the industry: 60.64% of the companies in the same industry are doing better.
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 | 0.47 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 9.11 |
ROIC/WACC2.83
WACC10.89%
2.3 Liquidity
ADB has a Current Ratio of 1.18. 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 Current ratio (1.18) which is in line with its industry peers.
ADB has a Quick Ratio of 1.18. 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 1.18 is in line compared to the rest of the industry. ADB outperforms 47.87% 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 | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
ADB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.55%, which is quite good.
The Earnings Per Share has been growing by 18.69% on average over the past years. This is quite good.
The Revenue has grown by 10.54% 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 14.00% on average per year.
EPS 1Y (TTM)13.55%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%13.39%
Revenue 1Y (TTM)10.54%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.27%
3.2 Future
The Earnings Per Share is expected to grow by 11.51% on average over the next years. This is quite good.
Based on estimates for the next years, ADB will show a quite strong growth in Revenue. The Revenue will grow by 9.39% on average per year.
EPS Next Y12.78%
EPS Next 2Y12.56%
EPS Next 3Y12.52%
EPS Next 5Y11.51%
Revenue Next Year9.32%
Revenue Next 2Y9.51%
Revenue Next 3Y9.66%
Revenue Next 5Y9.39%
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.
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 19.21, ADB is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of ADB indicates a rather cheap valuation: ADB is cheaper than 82.98% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.79, ADB is valued a bit cheaper.
ADB is valuated correctly with a Price/Forward Earnings ratio of 15.66.
ADB's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADB is cheaper than 81.91% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ADB to the average of the S&P500 Index (21.38), we can say ADB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.21 | ||
| Fwd PE | 15.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADB is valued a bit cheaper than the industry average as 61.70% of the companies are valued more expensively.
81.91% 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 | 16.95 | ||
| EV/EBITDA | 17.36 |
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.
A more expensive valuation may be justified as ADB's earnings are expected to grow with 12.52% in the coming years.
PEG (NY)1.5
PEG (5Y)1.03
EPS Next 2Y12.56%
EPS Next 3Y12.52%
5. Dividend
5.1 Amount
ADB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:ADB (4/25/2025, 7:00:00 PM)
321.8
+5.5 (+1.74%)
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 Cap137.15B
Analysts80
Price Target448.01 (39.22%)
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)2
Avg EPS beat(2)0.66%
Min EPS beat(2)0.18%
Max EPS beat(2)1.15%
EPS beat(4)4
Avg EPS beat(4)0.51%
Min EPS beat(4)0.06%
Max EPS beat(4)1.15%
EPS beat(8)8
Avg EPS beat(8)0.69%
EPS beat(12)10
Avg EPS beat(12)0.56%
EPS beat(16)12
Avg EPS beat(16)0.66%
Revenue beat(2)0
Avg Revenue beat(2)-0.88%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)-0.78%
Revenue beat(4)0
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-1.65%
Max Revenue beat(4)-0.78%
Revenue beat(8)0
Avg Revenue beat(8)-1.25%
Revenue beat(12)0
Avg Revenue beat(12)-1.36%
Revenue beat(16)1
Avg Revenue beat(16)-1.2%
PT rev (1m)-19.34%
PT rev (3m)-22.54%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-1.81%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-1.73%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.21 | ||
| Fwd PE | 15.66 | ||
| P/S | 7.07 | ||
| P/FCF | 16.95 | ||
| P/OCF | 16.63 | ||
| P/B | 11.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.36 |
EPS(TTM)16.75
EY5.21%
EPS(NY)20.55
Fwd EY6.39%
FCF(TTM)18.99
FCFY5.9%
OCF(TTM)19.35
OCFY6.01%
SpS45.53
BVpS27.05
TBVpS-0.8
PEG (NY)1.5
PEG (5Y)1.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.54% | ||
| ROE | 51.55% | ||
| ROCE | 38.46% | ||
| ROIC | 30.78% | ||
| ROICexc | 47.91% | ||
| ROICexgc | N/A | ||
| OM | 36.29% | ||
| PM (TTM) | 30.63% | ||
| GM | 89.15% | ||
| FCFM | 41.71% |
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-Score8
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 0.67 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 19.95% | ||
| Cap/Sales | 0.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.7% | ||
| Profit Quality | 136.16% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 9.11 |
F-Score8
WACC10.89%
ROIC/WACC2.83
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)13.55%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%13.39%
EPS Next Y12.78%
EPS Next 2Y12.56%
EPS Next 3Y12.52%
EPS Next 5Y11.51%
Revenue 1Y (TTM)10.54%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.27%
Revenue Next Year9.32%
Revenue Next 2Y9.51%
Revenue Next 3Y9.66%
Revenue Next 5Y9.39%
EBIT growth 1Y14.72%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year16.13%
EBIT Next 3Y11.14%
EBIT Next 5Y9.86%
FCF growth 1Y25.59%
FCF growth 3Y4.59%
FCF growth 5Y14.35%
OCF growth 1Y20.64%
OCF growth 3Y3.67%
OCF growth 5Y12.75%