349.99 USD
-2.52 (-0.71%)
349.62 USD
-0.37 (-0.11%)
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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes ADBE very considerable 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.
Each year in the past 5 years ADBE has been profitable.
In the past 5 years ADBE always reported a positive cash flow from operatings.
1.2 Ratios
ADBE has a better Return On Assets (24.17%) than 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 97.46% of its industry peers.
The Return On Invested Capital of ADBE (36.51%) is better than 97.83% 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 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's Profit Margin of 30.00% is amongst the best of the industry. ADBE outperforms 89.86% 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 94.57% of its industry peers.
ADBE's Operating Margin has been stable in the last couple of years.
ADBE has a better Gross Margin (89.27%) than 96.01% of its industry peers.
In the last couple of years the Gross Margin of ADBE has remained more or less at the same level.
| 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.
ADBE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ADBE has less shares outstanding
The debt/assets ratio for ADBE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.85 indicates that ADBE is not in any danger for bankruptcy at the moment.
ADBE has a Altman-Z score of 8.85. This is amongst the best in the industry. ADBE outperforms 86.96% 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 better Debt to FCF ratio (0.63) than 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.
With a Debt to Equity ratio value of 0.53, ADBE is not doing good in the industry: 66.30% of the companies in the same industry are doing better.
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 | 8.85 |
ROIC/WACC3.34
WACC10.94%
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 75.00% 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 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.
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.
Measured over the past years, ADBE shows a quite strong growth in Revenue. The Revenue has been growing by 13.06% on average per year.
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.
ADBE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.36% yearly.
EPS Next Y14.38%
EPS Next 2Y13.69%
EPS Next 3Y12.98%
EPS Next 5Y10.26%
Revenue Next Year9.9%
Revenue Next 2Y9.55%
Revenue Next 3Y9.43%
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
A Price/Earnings ratio of 16.71 indicates a correct valuation of ADBE.
Compared to the rest of the industry, the Price/Earnings ratio of ADBE indicates a somewhat cheap valuation: ADBE is cheaper than 78.26% of the companies listed in the same industry.
ADBE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.51.
A Price/Forward Earnings ratio of 14.61 indicates a correct valuation of ADBE.
81.88% of the companies in the same industry are more expensive than ADBE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ADBE to the average of the S&P500 Index (23.13), we can say ADBE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.71 | ||
| Fwd PE | 14.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADBE is valued cheaply inside the industry as 84.06% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ADBE is valued cheaply inside the industry as 85.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.87 | ||
| EV/EBITDA | 15.22 |
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 12.98% in the coming years.
PEG (NY)1.16
PEG (5Y)1.05
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% |
349.99
-2.52 (-0.71%)
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 Cap146.51B
Revenue(TTM)23.77B
Net Income(TTM)7.13B
Analysts79.13
Price Target449.23 (28.36%)
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)-4.72%
PT rev (3m)-6.27%
EPS NQ rev (1m)3.43%
EPS NQ rev (3m)3.18%
EPS NY rev (1m)0.55%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.71 | ||
| Fwd PE | 14.61 | ||
| P/S | 6.16 | ||
| P/FCF | 14.87 | ||
| P/OCF | 14.61 | ||
| P/B | 12.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.22 |
EPS(TTM)20.95
EY5.99%
EPS(NY)23.96
Fwd EY6.85%
FCF(TTM)23.54
FCFY6.72%
OCF(TTM)23.96
OCFY6.85%
SpS56.78
BVpS27.77
TBVpS-4.13
PEG (NY)1.16
PEG (5Y)1.05
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 | 8.85 |
F-Score7
WACC10.94%
ROIC/WACC3.34
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 5Y10.26%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y10.52%
Revenue growth 5Y13.06%
Sales Q2Q%10.49%
Revenue Next Year9.9%
Revenue Next 2Y9.55%
Revenue Next 3Y9.43%
Revenue Next 5Y8.36%
EBIT growth 1Y12.47%
EBIT growth 3Y12.6%
EBIT growth 5Y14.5%
EBIT Next Year13.32%
EBIT Next 3Y10.22%
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.
What is the valuation status of ADOBE INC (ADBE) stock?
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.
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.