ADOBE INC (ADBE) Fundamental Analysis & Valuation

NASDAQ:ADBE • US00724F1012

Current stock price

224.945 USD
-5 (-2.17%)
Last:

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.
  • In the past year ADBE had a positive cash flow from operations.
  • ADBE had positive earnings in each of the past 5 years.
  • In the past 5 years ADBE always reported a positive cash flow from operatings.
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

  • Looking at the Return On Assets, with a value of 24.27%, ADBE belongs to the top of the industry, outperforming 97.82% of the companies in the same industry.
  • ADBE's Return On Equity of 63.05% is amongst the best of the industry. ADBE outperforms 97.09% of its industry peers.
  • ADBE's Return On Invested Capital of 39.60% is amongst the best of the industry. ADBE outperforms 98.18% of its industry peers.
  • ADBE had an Average Return On Invested Capital over the past 3 years of 31.10%. This is significantly above the industry average of 10.99%.
  • The 3 year average ROIC (31.10%) for ADBE is below the current ROIC(39.60%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 24.27%
ROE 63.05%
ROIC 39.6%
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 better Profit Margin (29.48%) than 92.00% of its industry peers.
  • In the last couple of years the Profit Margin of ADBE has declined.
  • ADBE has a better Operating Margin (36.65%) than 96.36% of its industry peers.
  • ADBE's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of ADBE (89.40%) is better than 96.73% of its industry peers.
  • ADBE's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 36.65%
PM (TTM) 29.48%
GM 89.4%
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

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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.
  • 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.
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 7.08. This indicates that ADBE is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of ADBE (7.08) is better than 85.09% of its industry peers.
  • ADBE has a debt to FCF ratio of 0.60. This is a very positive value and a sign of high solvency as it would only need 0.60 years to pay back of all of its debts.
  • The Debt to FCF ratio of ADBE (0.60) is better than 76.73% of its industry peers.
  • A Debt/Equity ratio of 0.47 indicates that ADBE is not too dependend on debt financing.
  • ADBE has a worse Debt to Equity ratio (0.47) than 64.73% 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 0.47
Debt/FCF 0.6
Altman-Z 7.08
ROIC/WACC3.65
WACC10.86%
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

  • A Current Ratio of 0.91 indicates that ADBE may have some problems paying its short term obligations.
  • ADBE has a Current ratio of 0.91. This is amonst the worse of the industry: ADBE underperforms 80.36% of its industry peers.
  • ADBE has a Quick Ratio of 0.91. 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 (0.91) than 78.91% 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 RankSector Rank
Current Ratio 0.91
Quick Ratio 0.91
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

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

6

3. ADBE Growth Analysis

3.1 Past

  • ADBE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.30%, 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 15.87% on average per year.
  • 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

  • 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.
  • The Revenue is expected to grow by 8.02% on average over the next years. This is quite good.
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

  • 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.
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

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Find the best growth stocksShow best growing peers

9

4. ADBE Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 10.26 indicates a reasonable valuation of ADBE.
  • 87.27% of the companies in the same industry are more expensive than ADBE, based on the Price/Earnings ratio.
  • ADBE is valuated cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 8.32, the valuation of ADBE can be described as very reasonable.
  • 86.91% 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 rather cheap valuation when compared to the S&P500 average which is at 23.68.
Industry RankSector Rank
PE 10.26
Fwd PE 8.32
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 cheaper than 87.27% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADBE indicates a rather cheap valuation: ADBE is cheaper than 89.82% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 8.89
EV/EBITDA 9.5
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.
  • ADBE's earnings are expected to grow with 12.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.71
PEG (5Y)0.65
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

  • ADBE does not give a dividend.
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 (4/10/2026, 3:17:03 PM)

224.945

-5 (-2.17%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-12
Earnings (Next)06-10
Inst Owners86.91%
Inst Owner Change0%
Ins Owners0.19%
Ins Owner Change4.8%
Market Cap91.70B
Revenue(TTM)24.45B
Net Income(TTM)7.21B
Analysts72.44
Price Target331.26 (47.26%)
Short Float %3.25%
Short Ratio2.11
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)0.56%
Min EPS beat(2)-0.04%
Max EPS beat(2)1.17%
EPS beat(4)2
Avg EPS beat(4)0.4%
Min EPS beat(4)-0.06%
Max EPS beat(4)1.17%
EPS beat(8)6
Avg EPS beat(8)0.46%
EPS beat(12)10
Avg EPS beat(12)0.6%
EPS beat(16)12
Avg EPS beat(16)0.52%
Revenue beat(2)0
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-0.59%
Max Revenue beat(2)-0.05%
Revenue beat(4)0
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-0.6%
Max Revenue beat(4)-0.05%
Revenue beat(8)0
Avg Revenue beat(8)-0.81%
Revenue beat(12)0
Avg Revenue beat(12)-0.99%
Revenue beat(16)0
Avg Revenue beat(16)-1.13%
PT rev (1m)-21.82%
PT rev (3m)-26.26%
EPS NQ rev (1m)2.7%
EPS NQ rev (3m)2.6%
EPS NY rev (1m)0%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.08%
Valuation
Industry RankSector Rank
PE 10.26
Fwd PE 8.32
P/S 3.75
P/FCF 8.89
P/OCF 8.73
P/B 8.02
P/tB N/A
EV/EBITDA 9.5
EPS(TTM)21.93
EY9.75%
EPS(NY)27.05
Fwd EY12.02%
FCF(TTM)25.31
FCFY11.25%
OCF(TTM)25.78
OCFY11.46%
SpS59.99
BVpS28.05
TBVpS-4.64
PEG (NY)0.71
PEG (5Y)0.65
Graham Number117.64
Profitability
Industry RankSector Rank
ROA 24.27%
ROE 63.05%
ROCE 48.93%
ROIC 39.6%
ROICexc 63.48%
ROICexgc N/A
OM 36.65%
PM (TTM) 29.48%
GM 89.4%
FCFM 42.19%
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-Score8
Asset Turnover0.82
Health
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 0.6
Debt/EBITDA 0.55
Cap/Depr 24.52%
Cap/Sales 0.78%
Interest Coverage 250
Cash Conversion 107.92%
Profit Quality 143.13%
Current Ratio 0.91
Quick Ratio 0.91
Altman-Z 7.08
F-Score8
WACC10.86%
ROIC/WACC3.65
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 1Y12.05%
EBIT growth 3Y12.6%
EBIT growth 5Y14.5%
EBIT Next Year13.1%
EBIT Next 3Y8.83%
EBIT Next 5Y9.3%
FCF growth 1Y59.04%
FCF growth 3Y10.03%
FCF growth 5Y13.17%
OCF growth 1Y54.9%
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.


How profitable is ADOBE INC (ADBE) stock?

ADOBE INC (ADBE) has a profitability rating of 9 / 10.


Can you provide the PE and PB ratios for ADBE stock?

The Price/Earnings (PE) ratio for ADOBE INC (ADBE) is 10.26 and the Price/Book (PB) ratio is 8.02.


How financially healthy is ADOBE INC?

The financial health rating of ADOBE INC (ADBE) is 7 / 10.