266.215 USD
-3.18 (-1.18%)
Last: Feb 6, 2026, 03:43 PM
Taking everything into account, ADBE scores 7 out of 10 in our fundamental rating. ADBE was compared to 278 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make ADBE suitable 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 has a Return On Assets of 24.17%. This is amongst the best in the industry. ADBE outperforms 97.84% of its industry peers.
- ADBE's Return On Equity of 61.34% is amongst the best of the industry. ADBE outperforms 97.48% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 36.51%, ADBE belongs to the top of the industry, outperforming 97.84% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ADBE is significantly above the industry average of 10.78%.
- 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 89.57% of its industry peers.
- ADBE's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 36.63%, ADBE belongs to the top of the industry, outperforming 94.60% of the companies in the same industry.
- ADBE's Operating Margin has been stable in the last couple of years.
- With an excellent Gross Margin value of 89.27%, ADBE belongs to the best of the industry, outperforming 95.68% of the companies in the same industry.
- 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.
- Compared to 1 year ago, ADBE has a worse debt to assets ratio.
2.2 Solvency
- ADBE has an Altman-Z score of 7.72. This indicates that ADBE is financially healthy and has little risk of bankruptcy at the moment.
- ADBE's Altman-Z score of 7.72 is amongst the best of the industry. ADBE outperforms 87.77% 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.
- ADBE has a Debt to FCF ratio of 0.63. This is in the better half of the industry: ADBE outperforms 78.06% 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 66.91% of the companies in the same industry.
- Although ADBE does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 7.72 |
ROIC/WACC3.3
WACC11.05%
2.3 Liquidity
- A Current Ratio of 1.00 indicates that ADBE may have some problems paying its short term obligations.
- With a Current ratio value of 1.00, ADBE is not doing good in the industry: 74.82% of the companies in the same industry are doing better.
- 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.
- The Quick ratio of ADBE (1.00) is worse than 73.38% 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.
- The Earnings Per Share has been growing by 15.87% on average over the past years. This is quite good.
- 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
- Based on the Price/Earnings ratio of 12.71, the valuation of ADBE can be described as correct.
- 83.09% of the companies in the same industry are more expensive than ADBE, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.67, ADBE is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 11.11, the valuation of ADBE can be described as reasonable.
- Based on the Price/Forward Earnings ratio, ADBE is valued cheaply inside the industry as 82.73% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 27.20. ADBE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.71 | ||
| Fwd PE | 11.11 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ADBE is valued cheaply inside the industry as 84.53% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ADBE is valued cheaper than 86.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.31 | ||
| EV/EBITDA | 11.68 |
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.
- 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)0.88
PEG (5Y)0.8
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 (2/6/2026, 3:43:09 PM)
266.215
-3.18 (-1.18%)
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-2.65%
Ins Owners0.16%
Ins Owner Change4.79%
Market Cap111.44B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts78.7
Price Target436.63 (64.01%)
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)-2.8%
PT rev (3m)-7.69%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)3.32%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.71 | ||
| Fwd PE | 11.11 | ||
| P/S | 4.69 | ||
| P/FCF | 11.31 | ||
| P/OCF | 11.11 | ||
| P/B | 9.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.68 |
EPS(TTM)20.95
EY7.87%
EPS(NY)23.96
Fwd EY9%
FCF(TTM)23.54
FCFY8.84%
OCF(TTM)23.96
OCFY9%
SpS56.78
BVpS27.77
TBVpS-4.13
PEG (NY)0.88
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 | 7.72 |
F-Score7
WACC11.05%
ROIC/WACC3.3
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.