296.12 USD
-7.97 (-2.62%)
296.6 USD
+0.48 (+0.16%)
Taking everything into account, ADBE scores 7 out of 10 in our fundamental rating. ADBE was compared to 277 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! 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.
- In the past year ADBE had a positive cash flow from operations.
- In the past 5 years ADBE has always been profitable.
- ADBE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ADBE has a better Return On Assets (24.17%) than 97.47% of its industry peers.
- ADBE's Return On Equity of 61.34% is amongst the best of the industry. ADBE outperforms 97.47% of its industry peers.
- ADBE's Return On Invested Capital of 36.51% is amongst the best of the industry. ADBE outperforms 97.83% of its industry peers.
- 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 better Profit Margin (30.00%) than 89.89% of its industry peers.
- ADBE's Profit Margin has declined in the last couple of years.
- ADBE has a Operating Margin of 36.63%. This is amongst the best in the industry. ADBE outperforms 94.58% of its industry peers.
- ADBE's Operating Margin has been stable in the last couple of years.
- ADBE's Gross Margin of 89.27% is amongst the best of the industry. ADBE outperforms 95.67% 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
- 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.
- 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
- An Altman-Z score of 8.09 indicates that ADBE is not in any danger for bankruptcy at the moment.
- ADBE has a Altman-Z score of 8.09. This is amongst the best in the industry. ADBE outperforms 85.20% 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.
- The Debt to FCF ratio of ADBE (0.63) is better than 77.98% 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 66.79% of its industry peers.
- 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 | 8.09 |
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.
- ADBE has a worse Current ratio (1.00) than 75.09% 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.
- The Quick ratio of ADBE (1.00) is worse than 74.01% 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.
- 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 10.53% 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
- ADBE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.91% yearly.
- ADBE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.02% yearly.
EPS Next Y14.38%
EPS Next 2Y13.69%
EPS Next 3Y12.98%
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
- With a Price/Earnings ratio of 14.13, ADBE is valued correctly.
- ADBE's Price/Earnings ratio is rather cheap when compared to the industry. ADBE is cheaper than 82.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, ADBE is valued a bit cheaper.
- The Price/Forward Earnings ratio is 12.36, which indicates a correct valuation of ADBE.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ADBE indicates a rather cheap valuation: ADBE is cheaper than 84.48% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. ADBE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ADBE is valued cheaply inside the industry as 84.12% of the companies are valued more expensively.
- 87.73% of the companies in the same industry are more expensive than ADBE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.58 | ||
| EV/EBITDA | 12.85 |
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 12.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.98
PEG (5Y)0.89
EPS Next 2Y13.69%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
- ADBE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
296.12
-7.97 (-2.62%)
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-0.14%
Ins Owners0.16%
Ins Owner Change1.33%
Market Cap123.96B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts78.7
Price Target436.63 (47.45%)
Short Float %2.78%
Short Ratio2.94
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)-6.38%
PT rev (3m)-7.69%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)3.32%
EPS NY rev (1m)0.55%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 12.36 | ||
| P/S | 5.22 | ||
| P/FCF | 12.58 | ||
| P/OCF | 12.36 | ||
| P/B | 10.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.85 |
EPS(TTM)20.95
EY7.07%
EPS(NY)23.96
Fwd EY8.09%
FCF(TTM)23.54
FCFY7.95%
OCF(TTM)23.96
OCFY8.09%
SpS56.78
BVpS27.77
TBVpS-4.13
PEG (NY)0.98
PEG (5Y)0.89
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 | 8.09 |
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 Y14.38%
EPS Next 2Y13.69%
EPS Next 3Y12.98%
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 Year13.32%
EBIT Next 3Y10.22%
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 14.38% in the next year.