296.12 USD
-7.97 (-2.62%)
296.6 USD
+0.48 (+0.16%)
We assign a fundamental rating of 7 out of 10 to ADBE. ADBE was compared to 277 industry peers in the Software industry. ADBE gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on ADBE. With these ratings, ADBE could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year ADBE was profitable.
- In the past year ADBE had a positive cash flow from operations.
- Each year in the past 5 years ADBE has been profitable.
- In the past 5 years ADBE always reported a positive cash flow from operatings.
1.2 Ratios
- ADBE's Return On Assets of 24.17% is amongst the best of the industry. ADBE outperforms 97.47% of its industry peers.
- ADBE has a better Return On Equity (61.34%) than 97.47% of its industry peers.
- ADBE's Return On Invested Capital of 36.51% is amongst the best of the industry. ADBE outperforms 97.83% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ADBE is significantly above the industry average of 10.78%.
- The last Return On Invested Capital (36.51%) for ADBE 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
- The Profit Margin of ADBE (30.00%) is better than 89.89% of its industry peers.
- In the last couple of years the Profit Margin of ADBE has declined.
- ADBE's Operating Margin of 36.63% is amongst the best of the industry. ADBE outperforms 94.58% of its industry peers.
- ADBE's Operating Margin has been stable in the last couple of years.
- ADBE has a Gross Margin of 89.27%. This is amongst the best in the industry. ADBE outperforms 95.67% of its industry peers.
- ADBE's Gross Margin has been stable in the last couple of years.
| 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
- ADBE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for ADBE has been reduced compared to 1 year ago.
- Compared to 5 years ago, ADBE has less shares outstanding
- ADBE has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 8.09 indicates that ADBE is not in any danger for bankruptcy at the moment.
- The Altman-Z score of ADBE (8.09) is better than 85.20% of its industry peers.
- The Debt to FCF ratio of ADBE is 0.63, which is an excellent value as it means it would take ADBE, only 0.63 years of fcf income to pay off all of its debts.
- ADBE has a better Debt to FCF ratio (0.63) than 77.98% of its industry peers.
- ADBE has a Debt/Equity ratio of 0.53. This is a neutral value indicating ADBE is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.53, ADBE is doing worse than 66.79% of the companies in the same industry.
- Although ADBE 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 | 0.63 | ||
| Altman-Z | 8.09 |
ROIC/WACC3.32
WACC11%
2.3 Liquidity
- ADBE has a Current Ratio of 1.00. This is a bad value and indicates that ADBE is not financially healthy enough and could expect problems in meeting its short term obligations.
- ADBE's Current ratio of 1.00 is on the low side compared to the rest of the industry. ADBE is outperformed by 75.09% of its industry peers.
- ADBE has a Quick Ratio of 1.00. This is a bad value and indicates that ADBE is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of ADBE (1.00) is worse than 74.01% of its industry peers.
- The current and quick ratio evaluation for ADBE 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 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- ADBE 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.
- ADBE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.53%.
- The Revenue has been growing by 13.06% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to grow by 9.91% on average over the next years. This is quite good.
- Based on estimates for the next years, ADBE will show a quite strong growth in Revenue. The Revenue will grow by 8.02% on average per year.
EPS Next Y14.38%
EPS Next 2Y13.69%
EPS Next 3Y12.98%
EPS Next 5Y9.91%
Revenue Next Year9.89%
Revenue Next 2Y9.49%
Revenue Next 3Y9.04%
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
- Based on the Price/Earnings ratio of 14.13, the valuation of ADBE can be described as correct.
- Based on the Price/Earnings ratio, ADBE is valued cheaply inside the industry as 82.67% of the companies are valued more expensively.
- ADBE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
- A Price/Forward Earnings ratio of 12.36 indicates a correct valuation of ADBE.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ADBE indicates a rather cheap valuation: ADBE is cheaper than 84.48% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. ADBE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ADBE is valued cheaper than 84.12% of the companies in the same industry.
- ADBE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADBE is cheaper than 87.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.58 | ||
| EV/EBITDA | 12.85 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of ADBE may justify a higher PE ratio.
- A more expensive valuation may be justified as ADBE's earnings are expected to grow with 12.98% in the coming years.
PEG (NY)0.98
PEG (5Y)0.89
EPS Next 2Y13.69%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
- ADBE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
296.12
-7.97 (-2.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-10 2025-12-10/amc
Earnings (Next)03-12 2026-03-12/amc
Inst Owners86.02%
Inst Owner Change-0.14%
Ins Owners0.16%
Ins Owner Change1.33%
Market Cap123.96B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts78.7
Price Target436.63 (47.45%)
Short Float %2.78%
Short Ratio2.94
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)-6.38%
PT rev (3m)-7.69%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)3.32%
EPS NY rev (1m)0.55%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 12.36 | ||
| P/S | 5.22 | ||
| P/FCF | 12.58 | ||
| P/OCF | 12.36 | ||
| P/B | 10.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.85 |
EPS(TTM)20.95
EY7.07%
EPS(NY)23.96
Fwd EY8.09%
FCF(TTM)23.54
FCFY7.95%
OCF(TTM)23.96
OCFY8.09%
SpS56.78
BVpS27.77
TBVpS-4.13
PEG (NY)0.98
PEG (5Y)0.89
Graham Number114.4
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 | 8.09 |
F-Score7
WACC11%
ROIC/WACC3.32
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 Year9.89%
Revenue Next 2Y9.49%
Revenue Next 3Y9.04%
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 / ADBE FAQ
What is the ChartMill fundamental rating of ADOBE INC (ADBE) stock?
ChartMill assigns a fundamental rating of 7 / 10 to ADBE.
What is the valuation status of ADOBE INC (ADBE) stock?
ChartMill assigns a valuation rating of 8 / 10 to ADOBE INC (ADBE). This can be considered as Undervalued.
What is the profitability of ADBE stock?
ADOBE INC (ADBE) has a profitability rating of 9 / 10.
How financially healthy is ADOBE INC?
The financial health rating of ADOBE INC (ADBE) is 7 / 10.
What is the expected EPS growth for ADOBE INC (ADBE) stock?
The Earnings per Share (EPS) of ADOBE INC (ADBE) is expected to grow by 14.38% in the next year.