ADOBE INC (ADBE) Fundamental Analysis & Valuation

NASDAQ:ADBE • US00724F1012

Current stock price

234.84 USD
-6.04 (-2.51%)
At close:
234.19 USD
-0.65 (-0.28%)
After Hours:

This ADBE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. ADBE Profitability Analysis

1.1 Basic Checks

  • ADBE had positive earnings in the past year.
  • ADBE had a positive operating cash flow in the past year.
  • ADBE had positive earnings in each of the past 5 years.
  • Each year in the past 5 years ADBE had a positive operating cash flow.
ADBE Yearly Net Income VS EBIT VS OCF VS FCFADBE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

1.2 Ratios

  • ADBE's Return On Assets of 24.17% is amongst the best of the industry. ADBE outperforms 97.84% of its industry peers.
  • With an excellent Return On Equity value of 61.34%, ADBE belongs to the best of the industry, outperforming 96.76% of the companies in the same industry.
  • ADBE's Return On Invested Capital of 36.51% is amongst the best of the industry. ADBE outperforms 98.20% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ADBE is significantly above the industry average of 10.92%.
  • The 3 year average ROIC (31.10%) for ADBE is below the current ROIC(36.51%), indicating increased profibility in the last year.
Industry RankSector 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%
ADBE Yearly ROA, ROE, ROICADBE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

1.3 Margins

  • ADBE has a Profit Margin of 30.00%. This is amongst the best in the industry. ADBE outperforms 92.81% of its industry peers.
  • In the last couple of years the Profit Margin of ADBE has declined.
  • ADBE has a better Operating Margin (36.63%) than 96.40% of its industry peers.
  • In the last couple of years the Operating Margin of ADBE has remained more or less at the same level.
  • ADBE's Gross Margin of 89.27% is amongst the best of the industry. ADBE outperforms 96.76% of its industry peers.
  • ADBE's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
ADBE Yearly Profit, Operating, Gross MarginsADBE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. ADBE Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ADBE is creating value.
  • Compared to 1 year ago, ADBE has less shares outstanding
  • ADBE has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, ADBE has a worse debt to assets ratio.
ADBE Yearly Shares OutstandingADBE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
ADBE Yearly Total Debt VS Total AssetsADBE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • ADBE has an Altman-Z score of 7.14. This indicates that ADBE is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of ADBE (7.14) is better than 85.25% 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.
  • With a decent Debt to FCF ratio value of 0.63, ADBE is doing good in the industry, outperforming 76.98% of the companies in the same industry.
  • ADBE has a Debt/Equity ratio of 0.53. This is a neutral value indicating ADBE is somewhat dependend on debt financing.
  • ADBE has a Debt to Equity ratio of 0.53. This is in the lower half of the industry: ADBE underperforms 66.55% of its industry peers.
  • Although ADBE's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.53
Debt/FCF 0.63
Altman-Z 7.14
ROIC/WACC3.34
WACC10.93%
ADBE Yearly LT Debt VS Equity VS FCFADBE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

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.
  • Looking at the Current ratio, with a value of 1.00, ADBE is doing worse than 75.54% of the companies in the same industry.
  • 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.
  • ADBE has a worse Quick ratio (1.00) than 74.82% of its industry peers.
  • ADBE 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 RankSector Rank
Current Ratio 1
Quick Ratio 1
ADBE Yearly Current Assets VS Current LiabilitesADBE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. ADBE Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 15.30% over the past year.
  • ADBE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.87% yearly.
  • Looking at the last year, ADBE shows a quite strong growth in Revenue. The Revenue has grown by 10.96% in the last year.
  • Measured over the past years, ADBE shows a quite strong growth in Revenue. The Revenue has been growing by 13.06% on average per year.
EPS 1Y (TTM)15.3%
EPS 3Y15.15%
EPS 5Y15.87%
EPS Q2Q%19.29%
Revenue 1Y (TTM)10.96%
Revenue growth 3Y10.52%
Revenue growth 5Y13.06%
Sales Q2Q%11.97%

3.2 Future

  • The Earnings Per Share is expected to grow by 9.91% on average over the next years. This is quite good.
  • ADBE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.02% yearly.
EPS Next Y14.39%
EPS Next 2Y13.62%
EPS Next 3Y12.09%
EPS Next 5Y9.91%
Revenue Next Year9.98%
Revenue Next 2Y9.39%
Revenue Next 3Y9.13%
Revenue Next 5Y8.02%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ADBE Yearly Revenue VS EstimatesADBE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B
ADBE Yearly EPS VS EstimatesADBE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30 40

More info and screens

Find the best growth stocksShow best growing peers

9

4. ADBE Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 10.71 indicates a reasonable valuation of ADBE.
  • 87.05% of the companies in the same industry are more expensive than ADBE, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 24.88. ADBE is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 8.68, which indicates a very decent valuation of ADBE.
  • Based on the Price/Forward Earnings ratio, ADBE is valued cheaply inside the industry as 87.05% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of ADBE to the average of the S&P500 Index (22.19), we can say ADBE is valued rather cheaply.
Industry RankSector Rank
PE 10.71
Fwd PE 8.68
ADBE Price Earnings VS Forward Price EarningsADBE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ADBE is valued cheaply inside the industry as 87.05% of the companies are valued more expensively.
  • 89.57% of the companies in the same industry are more expensive than ADBE, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 9.72
EV/EBITDA 9.89
ADBE Per share dataADBE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

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.
  • ADBE has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as ADBE's earnings are expected to grow with 12.09% in the coming years.
PEG (NY)0.74
PEG (5Y)0.67
EPS Next 2Y13.62%
EPS Next 3Y12.09%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ADBE Dividend Analysis

5.1 Amount

  • No dividends for ADBE!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

ADBE Fundamentals: All Metrics, Ratios and Statistics

ADOBE INC

NASDAQ:ADBE (3/27/2026, 8:00:00 PM)

After market: 234.19 -0.65 (-0.28%)

234.84

-6.04 (-2.51%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-12
Earnings (Next)06-10
Inst Owners86.91%
Inst Owner Change0.12%
Ins Owners0.19%
Ins Owner Change4.8%
Market Cap95.73B
Revenue(TTM)24.45B
Net Income(TTM)7.13B
Analysts75.22
Price Target331.26 (41.06%)
Short Float %3.52%
Short Ratio2.47
Dividend
Industry RankSector 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)-21.82%
PT rev (3m)-26.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.03%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.08%
Valuation
Industry RankSector Rank
PE 10.71
Fwd PE 8.68
P/S 4.03
P/FCF 9.72
P/OCF 9.54
P/B 8.24
P/tB N/A
EV/EBITDA 9.89
EPS(TTM)21.93
EY9.34%
EPS(NY)27.05
Fwd EY11.52%
FCF(TTM)24.17
FCFY10.29%
OCF(TTM)24.61
OCFY10.48%
SpS58.31
BVpS28.51
TBVpS-4.24
PEG (NY)0.74
PEG (5Y)0.67
Graham Number118.61
Profitability
Industry RankSector 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 RankSector 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 7.14
F-Score7
WACC10.93%
ROIC/WACC3.34
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)15.3%
EPS 3Y15.15%
EPS 5Y15.87%
EPS Q2Q%19.29%
EPS Next Y14.39%
EPS Next 2Y13.62%
EPS Next 3Y12.09%
EPS Next 5Y9.91%
Revenue 1Y (TTM)10.96%
Revenue growth 3Y10.52%
Revenue growth 5Y13.06%
Sales Q2Q%11.97%
Revenue Next Year9.98%
Revenue Next 2Y9.39%
Revenue Next 3Y9.13%
Revenue Next 5Y8.02%
EBIT growth 1Y12.47%
EBIT growth 3Y12.6%
EBIT growth 5Y14.5%
EBIT Next Year13.1%
EBIT Next 3Y8.83%
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 Fundamental Analysis 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 9 / 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 14.39% in the next year.