352.42 USD
-5.11 (-1.43%)
352.25 USD
-0.17 (-0.05%)
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
ADBE had positive earnings in the past year.
ADBE had a positive operating cash flow in the past year.
ADBE had positive earnings in each of the past 5 years.
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 97.12% of its industry peers.
The Return On Equity of ADBE (61.34%) is better than 97.48% of its industry peers.
ADBE's Return On Invested Capital of 36.51% is amongst the best of the industry. ADBE outperforms 97.84% 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 10.78%.
The 3 year average ROIC (31.10%) for ADBE is below the current ROIC(36.51%), indicating increased profibility in the last year.
| 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 90.65% of its industry peers.
ADBE's Profit Margin has declined in the last couple of years.
ADBE has a better Operating Margin (36.63%) than 94.60% of its industry peers.
ADBE's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 89.27%, ADBE belongs to the top of the industry, outperforming 96.04% 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.
Compared to 5 years ago, ADBE has less shares outstanding
ADBE has a worse debt/assets ratio than last year.
2.2 Solvency
ADBE has an Altman-Z score of 8.88. This indicates that ADBE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ADBE (8.88) is better than 85.61% 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 77.70% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that ADBE is somewhat dependend on debt financing.
ADBE has a Debt to Equity ratio of 0.53. This is in the lower half of the industry: ADBE underperforms 66.55% of its industry peers.
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 | 8.88 |
ROIC/WACC3.32
WACC10.99%
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 74.46% of its industry peers.
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.
With a Quick ratio value of 1.00, ADBE is not doing good in the industry: 73.38% of the companies in the same industry are doing better.
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
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.
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
The Earnings Per Share is expected to grow by 10.26% on average over the next years. This is quite good.
Based on estimates for the next years, ADBE will show a quite strong growth in Revenue. The Revenue will grow by 8.36% on average per year.
EPS Next Y13.76%
EPS Next 2Y13.16%
EPS Next 3Y10.93%
EPS Next 5Y10.26%
Revenue Next Year9.32%
Revenue Next 2Y9.25%
Revenue Next 3Y8.78%
Revenue Next 5Y8.36%
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.
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
The Price/Earnings ratio is 16.82, which indicates a correct valuation of ADBE.
Based on the Price/Earnings ratio, ADBE is valued a bit cheaper than the industry average as 78.78% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.50, ADBE is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.79 indicates a correct valuation of ADBE.
ADBE's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADBE is cheaper than 80.58% of the companies in the same industry.
ADBE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.93.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.82 | ||
| Fwd PE | 14.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADBE is valued cheaply inside the industry as 84.17% of the companies are valued more expensively.
ADBE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADBE is cheaper than 85.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.97 | ||
| EV/EBITDA | 15.33 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ADBE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.22
PEG (5Y)1.06
EPS Next 2Y13.16%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
No dividends for ADBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
352.42
-5.11 (-1.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners85.97%
Inst Owner Change-1.23%
Ins Owners0.16%
Ins Owner Change1.05%
Market Cap147.52B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts79.13
Price Target466.4 (32.34%)
Short Float %2.94%
Short Ratio3.08
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)-1.4%
PT rev (3m)-2.69%
EPS NQ rev (1m)3.07%
EPS NQ rev (3m)2.81%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.82 | ||
| Fwd PE | 14.79 | ||
| P/S | 6.21 | ||
| P/FCF | 14.97 | ||
| P/OCF | 14.71 | ||
| P/B | 12.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.33 |
EPS(TTM)20.95
EY5.94%
EPS(NY)23.83
Fwd EY6.76%
FCF(TTM)23.54
FCFY6.68%
OCF(TTM)23.96
OCFY6.8%
SpS56.78
BVpS27.77
TBVpS-4.13
PEG (NY)1.22
PEG (5Y)1.06
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 | 8.88 |
F-Score7
WACC10.99%
ROIC/WACC3.32
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 Y13.76%
EPS Next 2Y13.16%
EPS Next 3Y10.93%
EPS Next 5Y10.26%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y10.52%
Revenue growth 5Y13.06%
Sales Q2Q%10.49%
Revenue Next Year9.32%
Revenue Next 2Y9.25%
Revenue Next 3Y8.78%
Revenue Next 5Y8.36%
EBIT growth 1Y12.47%
EBIT growth 3Y12.6%
EBIT growth 5Y14.5%
EBIT Next Year14.84%
EBIT Next 3Y10.38%
EBIT Next 5Y10.07%
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.
Can you provide the valuation status for ADOBE INC?
ChartMill assigns a valuation rating of 7 / 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.
What are the PE and PB ratios of ADOBE INC (ADBE) stock?
The Price/Earnings (PE) ratio for ADOBE INC (ADBE) is 16.82 and the Price/Book (PB) ratio is 12.69.
What is the financial health of ADOBE INC (ADBE) stock?
The financial health rating of ADOBE INC (ADBE) is 7 / 10.