266.9 USD
-1.48 (-0.55%)
At close: Feb 9, 2026
267.45 USD
+0.55 (+0.21%)
After Hours: 2/9/2026, 6:25:02 PM
ADBE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. Both the health and profitability get an excellent rating, making ADBE a very profitable company, without any liquidiy or solvency issues. ADBE is valued quite cheap, while showing a decent growth score. This is a good combination! This makes ADBE very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
- ADBE had positive earnings in the past year.
- 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
- The Return On Assets of ADBE (24.17%) is better than 97.83% of its industry peers.
- With an excellent Return On Equity value of 61.34%, ADBE belongs to the best of the industry, outperforming 97.47% of the companies in the same industry.
- The Return On Invested Capital of ADBE (36.51%) is better than 98.19% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ADBE is significantly above the industry average of 10.91%.
- 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
- ADBE has a Profit Margin of 30.00%. This is amongst the best in the industry. ADBE outperforms 89.17% of its industry peers.
- ADBE's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 36.63%, ADBE belongs to the best of the industry, outperforming 94.58% of the companies in the same industry.
- ADBE's Operating Margin has been stable in the last couple of years.
- ADBE's Gross Margin of 89.27% is amongst the best of 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.
- ADBE has less shares outstanding than it did 5 years ago.
- ADBE has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 7.70 indicates that ADBE is not in any danger for bankruptcy at the moment.
- ADBE's Altman-Z score of 7.70 is amongst the best of the industry. ADBE outperforms 87.36% of its industry peers.
- ADBE 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.
- Looking at the Debt to FCF ratio, with a value of 0.63, ADBE is in the better half of the industry, outperforming 77.62% 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's Debt to Equity ratio of 0.53 is on the low side compared to the rest of the industry. ADBE is outperformed by 67.51% of its industry peers.
- Even though the debt/equity ratio score it not favorable for ADBE, 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 | 7.7 |
ROIC/WACC3.29
WACC11.11%
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 has a Current ratio of 1.00. This is in the lower half of the industry: ADBE underperforms 74.73% of its industry peers.
- A Quick Ratio of 1.00 indicates that ADBE may have some problems paying its short term obligations.
- ADBE has a Quick ratio of 1.00. This is in the lower half of the industry: ADBE underperforms 73.65% 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
- The Earnings Per Share has grown by an nice 13.74% over the past year.
- Measured over the past years, ADBE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.87% on average per year.
- The Revenue has grown by 10.53% in the past year. This is quite good.
- ADBE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.06% yearly.
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
- Based on estimates for the next years, ADBE will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.91% on average per year.
- 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 Y14.37%
EPS Next 2Y13.61%
EPS Next 3Y12.14%
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
- The Price/Earnings ratio is 12.74, which indicates a correct valuation of ADBE.
- 83.39% of the companies in the same industry are more expensive than ADBE, based on the Price/Earnings ratio.
- ADBE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.06.
- With a Price/Forward Earnings ratio of 11.14, the valuation of ADBE can be described as very reasonable.
- ADBE's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADBE is cheaper than 84.48% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 27.86. ADBE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 11.14 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ADBE is valued cheaper than 84.48% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ADBE is valued cheaply inside the industry as 88.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.34 | ||
| EV/EBITDA | 11.63 |
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.
- ADBE's earnings are expected to grow with 12.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)0.8
EPS Next 2Y13.61%
EPS Next 3Y12.14%
5. Dividend
5.1 Amount
- ADBE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
266.9
-1.48 (-0.55%)
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-2.6%
Ins Owners0.16%
Ins Owner Change4.79%
Market Cap111.72B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts78.7
Price Target429.58 (60.95%)
Short Float %2.87%
Short Ratio2.65
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)-4.37%
PT rev (3m)-9.18%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)3.32%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 11.14 | ||
| P/S | 4.7 | ||
| P/FCF | 11.34 | ||
| P/OCF | 11.14 | ||
| P/B | 9.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.63 |
EPS(TTM)20.95
EY7.85%
EPS(NY)23.96
Fwd EY8.98%
FCF(TTM)23.54
FCFY8.82%
OCF(TTM)23.96
OCFY8.98%
SpS56.78
BVpS27.77
TBVpS-4.13
PEG (NY)0.89
PEG (5Y)0.8
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 | 7.7 |
F-Score7
WACC11.11%
ROIC/WACC3.29
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 Y14.37%
EPS Next 2Y13.61%
EPS Next 3Y12.14%
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 Year13.1%
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 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 14.37% in the next year.