ADOBE INC (ADBE) Stock Fundamental Analysis
NASDAQ:ADBE • US00724F1012
259.44 USD
-1.01 (-0.39%)
Last: Feb 18, 2026, 09:44 AM
ADBE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 276 industry peers in the Software industry. ADBE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
- In the past year ADBE was profitable.
- In the past year ADBE had a positive cash flow from operations.
- In the past 5 years ADBE has always been profitable.
- Each year in the past 5 years ADBE had a positive operating cash flow.
1.2 Ratios
- ADBE's Return On Assets of 24.17% is amongst the best of the industry. ADBE outperforms 97.46% of its industry peers.
- ADBE has a Return On Equity of 61.34%. This is amongst the best in the industry. ADBE outperforms 97.10% of its industry peers.
- ADBE has a better Return On Invested Capital (36.51%) than 98.55% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ADBE is significantly above the industry average of 10.64%.
- 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
- Looking at the Profit Margin, with a value of 30.00%, ADBE belongs to the top of the industry, outperforming 89.86% of the companies in the same industry.
- 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 94.57% 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 has a better Gross Margin (89.27%) than 95.65% 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
- Compared to 1 year ago, ADBE has a worse debt to assets ratio.
2.2 Solvency
- ADBE has an Altman-Z score of 7.52. This indicates that ADBE is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 7.52, ADBE belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
- 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's Debt to FCF ratio of 0.63 is fine compared to the rest of the industry. ADBE outperforms 77.90% 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 67.75% 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 | 0.53 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 7.52 |
ROIC/WACC3.35
WACC10.91%
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 75.00% 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 73.91% 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 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.
- Looking at the last year, ADBE shows a quite strong growth in Revenue. The Revenue has grown by 10.53% in the last year.
- 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.
- The Revenue is expected to grow by 8.02% on average over the next years. This is quite good.
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
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- ADBE is valuated correctly with a Price/Earnings ratio of 12.38.
- 83.33% 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 27.16. ADBE is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 10.83, which indicates a very decent valuation of ADBE.
- 83.33% of the companies in the same industry are more expensive than ADBE, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.10, ADBE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.38 | ||
| Fwd PE | 10.83 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADBE indicates a rather cheap valuation: ADBE is cheaper than 84.78% of the companies listed 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 88.04% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.81 | ||
| EV/EBITDA | 11.06 |
4.3 Compensation for Growth
- ADBE's 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.
- ADBE's earnings are expected to grow with 12.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.86
PEG (5Y)0.78
EPS Next 2Y13.61%
EPS Next 3Y12.14%
5. Dividend
5.1 Amount
- No dividends for ADBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:ADBE (2/18/2026, 9:44:08 AM)
259.44
-1.01 (-0.39%)
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-1.78%
Ins Owners0.16%
Ins Owner Change4.79%
Market Cap106.50B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts75.65
Price Target429.58 (65.58%)
Short Float %2.92%
Short Ratio2.32
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%
EPS NQ rev (3m)3.32%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.38 | ||
| Fwd PE | 10.83 | ||
| P/S | 4.48 | ||
| P/FCF | 10.81 | ||
| P/OCF | 10.62 | ||
| P/B | 9.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.06 |
EPS(TTM)20.95
EY8.08%
EPS(NY)23.96
Fwd EY9.24%
FCF(TTM)24
FCFY9.25%
OCF(TTM)24.44
OCFY9.42%
SpS57.9
BVpS28.31
TBVpS-4.21
PEG (NY)0.86
PEG (5Y)0.78
Graham Number115.53
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 | 7.52 |
F-Score7
WACC10.91%
ROIC/WACC3.35
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.