ADOBE INC (ADBE)
US00724F1012 - Common Stock
ADBE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. ADBE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ADBE has a correct valuation and a medium growth rate. These ratings would make ADBE suitable for quality investing!
1. Profitability
1.1 Basic Checks
ADBE had positive earnings in the past year.
ADBE had a positive operating cash flow in the past year.
Each year in the past 5 years ADBE has been profitable.
ADBE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 18.39%, ADBE belongs to the best of the industry, outperforming 94.24% of the companies in the same industry.
ADBE has a better Return On Equity (39.42%) than 94.60% of its industry peers.
The Return On Invested Capital of ADBE (31.43%) is better than 98.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ADBE is significantly above the industry average of 12.23%.
The 3 year average ROIC (27.26%) for ADBE is below the current ROIC(31.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.39% | ||
| ROE | 39.42% | ||
| ROIC | 31.43% |
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
ADBE's Profit Margin of 25.85% is amongst the best of the industry. ADBE outperforms 92.45% of its industry peers.
ADBE's Profit Margin has been stable in the last couple of years.
ADBE's Operating Margin of 36.00% is amongst the best of the industry. ADBE outperforms 97.12% of its industry peers.
In the last couple of years the Operating Margin of ADBE has grown nicely.
ADBE's Gross Margin of 89.04% is amongst the best of the industry. ADBE outperforms 94.60% of its industry peers.
In the last couple of years the Gross Margin of ADBE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36% | ||
| PM (TTM) | 25.85% | ||
| GM | 89.04% |
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
ADBE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ADBE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ADBE has less shares outstanding
The debt/assets ratio for ADBE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.53 indicates that ADBE is not in any danger for bankruptcy at the moment.
ADBE has a Altman-Z score of 10.53. This is amongst the best in the industry. ADBE outperforms 82.01% of its industry peers.
ADBE has a debt to FCF ratio of 0.71. This is a very positive value and a sign of high solvency as it would only need 0.71 years to pay back of all of its debts.
ADBE has a better Debt to FCF ratio (0.71) than 75.90% of its industry peers.
ADBE has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.29, ADBE is doing worse than 61.51% of the companies in the same industry.
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 | 0.29 | ||
| Debt/FCF | 0.71 | ||
| Altman-Z | 10.53 |
ROIC/WACC2.69
WACC11.68%
2.3 Liquidity
ADBE has a Current Ratio of 1.07. This is a normal value and indicates that ADBE is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.07, ADBE is not doing good in the industry: 75.18% of the companies in the same industry are doing better.
A Quick Ratio of 1.07 indicates that ADBE should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.07, ADBE is not doing good in the industry: 74.10% of the companies in the same industry are doing better.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
ADBE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.62%, which is quite good.
Measured over the past years, ADBE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.69% on average per year.
ADBE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.80%.
ADBE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.00% yearly.
EPS 1Y (TTM)14.62%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%12.65%
Revenue 1Y (TTM)10.8%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%11.05%
3.2 Future
The Earnings Per Share is expected to grow by 12.96% 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 11.33% yearly.
EPS Next Y13.17%
EPS Next 2Y13.17%
EPS Next 3Y12.78%
EPS Next 5Y12.96%
Revenue Next Year9.74%
Revenue Next 2Y9.95%
Revenue Next 3Y9.8%
Revenue Next 5Y11.33%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.28, ADBE is valued on the expensive side.
Based on the Price/Earnings ratio, ADBE is valued a bit cheaper than 79.86% of the companies in the same industry.
ADBE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.73.
The Price/Forward Earnings ratio is 21.45, which indicates a rather expensive current valuation of ADBE.
78.78% of the companies in the same industry are more expensive than ADBE, based on the Price/Forward Earnings ratio.
ADBE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.28 | ||
| Fwd PE | 21.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADBE is valued cheaper than 80.58% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ADBE is valued cheaply inside the industry as 81.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25 | ||
| EV/EBITDA | 22.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ADBE does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ADBE may justify a higher PE ratio.
ADBE's earnings are expected to grow with 12.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.84
PEG (5Y)1.3
EPS Next 2Y13.17%
EPS Next 3Y12.78%
5. Dividend
5.1 Amount
No dividends for ADBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ADOBE INC
NASDAQ:ADBE (12/20/2024, 8:00:00 PM)
After market: 449.25 +2.08 (+0.47%)447.17
+9.78 (+2.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners81.82%
Inst Owner Change-1.32%
Ins Owners0.21%
Ins Owner Change-0.49%
Market Cap196.84B
Analysts80.87
Price Target634.79 (41.96%)
Short Float %1.34%
Short Ratio1.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)0.9%
Min EPS beat(2)0.66%
Max EPS beat(2)1.14%
EPS beat(4)4
Avg EPS beat(4)0.54%
Min EPS beat(4)0.06%
Max EPS beat(4)1.14%
EPS beat(8)8
Avg EPS beat(8)0.82%
EPS beat(12)9
Avg EPS beat(12)0.45%
EPS beat(16)12
Avg EPS beat(16)1.31%
Revenue beat(2)0
Avg Revenue beat(2)-1.01%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)-0.78%
Revenue beat(4)0
Avg Revenue beat(4)-1.22%
Min Revenue beat(4)-1.65%
Max Revenue beat(4)-0.78%
Revenue beat(8)0
Avg Revenue beat(8)-1.29%
Revenue beat(12)0
Avg Revenue beat(12)-1.4%
Revenue beat(16)2
Avg Revenue beat(16)-1.02%
PT rev (1m)-0.19%
PT rev (3m)1.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)0%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.28 | ||
| Fwd PE | 21.45 | ||
| P/S | 9.15 | ||
| P/FCF | 25 | ||
| P/OCF | 24.43 | ||
| P/B | 13.96 | ||
| P/tB | 367.93 | ||
| EV/EBITDA | 22.1 |
EPS(TTM)18.42
EY4.12%
EPS(NY)20.85
Fwd EY4.66%
FCF(TTM)17.89
FCFY4%
OCF(TTM)18.3
OCFY4.09%
SpS48.85
BVpS32.04
TBVpS1.22
PEG (NY)1.84
PEG (5Y)1.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.39% | ||
| ROE | 39.42% | ||
| ROCE | 39.28% | ||
| ROIC | 31.43% | ||
| ROICexc | 52.4% | ||
| ROICexgc | N/A | ||
| OM | 36% | ||
| PM (TTM) | 25.85% | ||
| GM | 89.04% | ||
| FCFM | 36.61% |
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-Score7
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.71 | ||
| Debt/EBITDA | 0.48 | ||
| Cap/Depr | 21.35% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 82.35 | ||
| Cash Conversion | 93.7% | ||
| Profit Quality | 141.6% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 10.53 |
F-Score7
WACC11.68%
ROIC/WACC2.69
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)14.62%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%12.65%
EPS Next Y13.17%
EPS Next 2Y13.17%
EPS Next 3Y12.78%
EPS Next 5Y12.96%
Revenue 1Y (TTM)10.8%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%11.05%
Revenue Next Year9.74%
Revenue Next 2Y9.95%
Revenue Next 3Y9.8%
Revenue Next 5Y11.33%
EBIT growth 1Y16.41%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year17.69%
EBIT Next 3Y12.69%
EBIT Next 5Y12.14%
FCF growth 1Y13.41%
FCF growth 3Y4.59%
FCF growth 5Y14.35%
OCF growth 1Y10.33%
OCF growth 3Y3.67%
OCF growth 5Y12.75%