324.19 USD
+11.79 (+3.77%)
324.26 USD
+0.07 (+0.02%)
Taking everything into account, ADBE scores 7 out of 10 in our fundamental rating. ADBE was compared to 280 industry peers in the Software industry. Both the health and profitability get an excellent rating, making ADBE a very profitable company, without any liquidiy or solvency issues. ADBE may be a bit undervalued, certainly considering the very reasonable score on growth This makes ADBE very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year ADBE was profitable.
ADBE had a positive operating cash flow in the past year.
In the past 5 years ADBE has always been profitable.
In the past 5 years ADBE always reported a positive cash flow from operatings.
1.2 Ratios
ADBE's Return On Assets of 24.19% is amongst the best of the industry. ADBE outperforms 97.15% of its industry peers.
ADBE's Return On Equity of 59.11% is amongst the best of the industry. ADBE outperforms 97.51% of its industry peers.
ADBE's Return On Invested Capital of 34.45% is amongst the best of the industry. ADBE outperforms 97.51% 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 11.96%.
The 3 year average ROIC (27.26%) for ADBE is below the current ROIC(34.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.19% | ||
| ROE | 59.11% | ||
| ROIC | 34.46% |
ROA(3y)18.04%
ROA(5y)18.7%
ROE(3y)35.38%
ROE(5y)35.67%
ROIC(3y)27.26%
ROIC(5y)24.7%
1.3 Margins
Looking at the Profit Margin, with a value of 30.01%, ADBE belongs to the top of the industry, outperforming 91.10% of the companies in the same industry.
In the last couple of years the Profit Margin of ADBE has remained more or less at the same level.
Looking at the Operating Margin, with a value of 36.25%, ADBE belongs to the top of the industry, outperforming 94.66% of the companies in the same industry.
ADBE's Operating Margin has improved in the last couple of years.
ADBE's Gross Margin of 89.14% is amongst the best of the industry. ADBE outperforms 95.73% of its industry peers.
ADBE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.25% | ||
| PM (TTM) | 30.01% | ||
| GM | 89.14% |
OM growth 3Y-0.69%
OM growth 5Y3.18%
PM growth 3Y-5.41%
PM growth 5Y-0.43%
GM growth 3Y0.32%
GM growth 5Y0.93%
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.
The number of shares outstanding for ADBE has been reduced compared to 5 years ago.
The debt/assets ratio for ADBE is higher compared to a year ago.
2.2 Solvency
ADBE has an Altman-Z score of 8.69. This indicates that ADBE is financially healthy and has little risk of bankruptcy at the moment.
ADBE has a Altman-Z score of 8.69. This is amongst the best in the industry. ADBE outperforms 85.41% of its industry peers.
ADBE has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
ADBE's Debt to FCF ratio of 0.65 is fine compared to the rest of the industry. ADBE outperforms 79.00% 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.
With a Debt to Equity ratio value of 0.53, ADBE is not doing good in the industry: 65.84% of the companies in the same industry are doing better.
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 | 0.65 | ||
| Altman-Z | 8.69 |
ROIC/WACC3.18
WACC10.85%
2.3 Liquidity
ADBE has a Current Ratio of 1.02. This is a normal value and indicates that ADBE is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.02, ADBE is not doing good in the industry: 74.38% of the companies in the same industry are doing better.
ADBE has a Quick Ratio of 1.02. This is a normal value and indicates that ADBE is financially healthy and should not expect problems in meeting its short term obligations.
ADBE has a worse Quick ratio (1.02) than 72.95% 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 | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
ADBE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.31%, which is quite good.
The Earnings Per Share has been growing by 18.69% on average over the past years. This is quite good.
The Revenue has grown by 10.67% in the past year. This is quite good.
The Revenue has been growing by 14.00% on average over the past years. This is quite good.
EPS 1Y (TTM)13.31%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%14.19%
Revenue 1Y (TTM)10.67%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.72%
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 11.20% yearly.
ADBE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.95% yearly.
EPS Next Y15.35%
EPS Next 2Y13.74%
EPS Next 3Y13.35%
EPS Next 5Y11.2%
Revenue Next Year10.46%
Revenue Next 2Y9.86%
Revenue Next 3Y9.64%
Revenue Next 5Y8.95%
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 16.00, which indicates a correct valuation of ADBE.
Based on the Price/Earnings ratio, ADBE is valued a bit cheaper than the industry average as 79.36% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ADBE to the average of the S&P500 Index (25.47), we can say ADBE is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.60 indicates a correct valuation of ADBE.
Based on the Price/Forward Earnings ratio, ADBE is valued cheaply inside the industry as 81.49% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.42. ADBE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 13.6 |
4.2 Price Multiples
ADBE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ADBE is cheaper than 82.92% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ADBE is valued cheaply inside the industry as 86.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.14 | ||
| EV/EBITDA | 14.59 |
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.
A more expensive valuation may be justified as ADBE's earnings are expected to grow with 13.35% in the coming years.
PEG (NY)1.04
PEG (5Y)0.86
EPS Next 2Y13.74%
EPS Next 3Y13.35%
5. Dividend
5.1 Amount
No dividends for ADBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
324.19
+11.79 (+3.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.03%
Inst Owner Change-1.21%
Ins Owners0.16%
Ins Owner Change1.16%
Market Cap135.71B
Revenue(TTM)23.18B
Net Income(TTM)6.96B
Analysts78.72
Price Target471.47 (45.43%)
Short Float %2.74%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0.24%
Min EPS beat(2)-0.06%
Max EPS beat(2)0.55%
EPS beat(4)3
Avg EPS beat(4)0.45%
Min EPS beat(4)-0.06%
Max EPS beat(4)1.15%
EPS beat(8)7
Avg EPS beat(8)0.5%
EPS beat(12)11
Avg EPS beat(12)0.67%
EPS beat(16)11
Avg EPS beat(16)0.26%
Revenue beat(2)0
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-0.6%
Max Revenue beat(2)-0.56%
Revenue beat(4)0
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-0.99%
Max Revenue beat(4)-0.56%
Revenue beat(8)0
Avg Revenue beat(8)-1.08%
Revenue beat(12)0
Avg Revenue beat(12)-1.21%
Revenue beat(16)0
Avg Revenue beat(16)-1.27%
PT rev (1m)-0.33%
PT rev (3m)-6.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 13.6 | ||
| P/S | 5.85 | ||
| P/FCF | 14.14 | ||
| P/OCF | 13.86 | ||
| P/B | 11.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.59 |
EPS(TTM)20.26
EY6.25%
EPS(NY)23.83
Fwd EY7.35%
FCF(TTM)22.93
FCFY7.07%
OCF(TTM)23.39
OCFY7.22%
SpS55.38
BVpS28.12
TBVpS-3.93
PEG (NY)1.04
PEG (5Y)0.86
Graham Number113.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.19% | ||
| ROE | 59.11% | ||
| ROCE | 43.05% | ||
| ROIC | 34.46% | ||
| ROICexc | 49.53% | ||
| ROICexgc | 4255.63% | ||
| OM | 36.25% | ||
| PM (TTM) | 30.01% | ||
| GM | 89.14% | ||
| FCFM | 41.41% |
ROA(3y)18.04%
ROA(5y)18.7%
ROE(3y)35.38%
ROE(5y)35.67%
ROIC(3y)27.26%
ROIC(5y)24.7%
ROICexc(3y)43%
ROICexc(5y)37.74%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)34.07%
ROCE(5y)30.87%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y17.87%
ROICexc growth 5Y9.83%
OM growth 3Y-0.69%
OM growth 5Y3.18%
PM growth 3Y-5.41%
PM growth 5Y-0.43%
GM growth 3Y0.32%
GM growth 5Y0.93%
F-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 22.65% | ||
| Cap/Sales | 0.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.81% | ||
| Profit Quality | 137.98% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 8.69 |
F-Score7
WACC10.85%
ROIC/WACC3.18
Cap/Depr(3y)38.09%
Cap/Depr(5y)42.76%
Cap/Sales(3y)1.74%
Cap/Sales(5y)2.14%
Profit Quality(3y)141.67%
Profit Quality(5y)133.73%
High Growth Momentum
Growth
EPS 1Y (TTM)13.31%
EPS 3Y13.86%
EPS 5Y18.69%
EPS Q2Q%14.19%
EPS Next Y15.35%
EPS Next 2Y13.74%
EPS Next 3Y13.35%
EPS Next 5Y11.2%
Revenue 1Y (TTM)10.67%
Revenue growth 3Y10.86%
Revenue growth 5Y14%
Sales Q2Q%10.72%
Revenue Next Year10.46%
Revenue Next 2Y9.86%
Revenue Next 3Y9.64%
Revenue Next 5Y8.95%
EBIT growth 1Y11.62%
EBIT growth 3Y10.09%
EBIT growth 5Y17.62%
EBIT Next Year17.42%
EBIT Next 3Y11.33%
EBIT Next 5Y10.2%
FCF growth 1Y25.87%
FCF growth 3Y4.59%
FCF growth 5Y14.35%
OCF growth 1Y21.94%
OCF growth 3Y3.67%
OCF growth 5Y12.75%
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 and the Price/Book (PB) ratio is 11.53.
What is the financial health of ADOBE INC (ADBE) stock?
The financial health rating of ADOBE INC (ADBE) is 7 / 10.