ADOBE INC. (ADBE) Factsheet
ADOBE INC. (ADBE) Stock Analysis
Analysis from 10-Q filed 2025-09-24. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 45.9%. FCF margin 42.2%. D/E 0.1x. Source: 10-Q filed 2025-09-24.
| Metric | Value | Context |
|---|---|---|
| ROIC | 45.9% | Above industry average |
| FCF Margin | 42.2% | Strong cash generation |
| Debt/Equity | 0.1x | Conservative leverage |
ROIC 45.9% — Top 5% of sector peers. FCF margin 42.2% — Top 5%.
Explore ADOBE INC.: Earnings History | Filings | ROIC Analysis
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for ADBE: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: ADOBE INC. earns 45.9% ROIC, Top 5% in Technology
ROIC TTM 45.9%, sector median 4.9%, Top 5%. DuPont: NOPAT margin 29.4% × asset turnover 0.8x. Gross margin 89.4%. Operating margin 36.6%. Source: 10-Q filed 2025-09-24.
| Metric | ADBE | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 45.9% | Excellent | Above sector median of 4.9% |
| Return on Equity (ROE) | 61.2% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 89.4% | Excellent | Strong pricing power |
| Operating Margin | 36.6% | Excellent | Efficient operations |
Cash Flow: ADOBE INC. generates $10.3B FCF at 42.2% margin, positive NaN/8 quarters
FCF TTM $10.3B. FCF margin 42.2%, Top 5%. OCF/Net income 1.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-09-24.
| Metric | ADBE | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 42.2% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $10.3B | Good | Positive cash generation |
| OCF/Net Income | 1.5x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: ADOBE INC. at 0.1x leverage
Debt/Equity 0.1x. Net cash $6.0B. Source: 10-Q filed 2025-09-24.
| Metric | ADBE | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.1x | Excellent | Conservative capital structure |
| Net Cash Position | $6.0B | Excellent | Net cash positive |
Valuation: ADOBE INC. trades at 15.3x earnings
P/E 15.3x. EV/Sales 4.2x. FCF yield 9.4%. Source: 10-Q filed 2025-09-24.
| Metric | ADBE | Rating | Context |
|---|---|---|---|
| P/E Ratio | 15.3x | Adequate | Reasonable valuation |
| EV/Sales | 4.2x | Good | Growth premium priced in |
| FCF Yield | 9.4% | Excellent | Attractive cash return |
Capital Allocation: ADOBE INC. returns 9.5% shareholder yield
Total shareholder yield 9.5% (buyback 9.5%). Capital returned $10.5B TTM. Source: 10-Q filed 2025-09-24.
| Metric | ADBE | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 9.5% | Excellent | Dividend + buyback yield combined |
| Buyback Yield | 9.5% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $10.5B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 45.9% | Top 5% | 9.4x above |
| Free Cash Flow Margin | 42.2% | Top 5% | 4.9x above |
| Gross Margin | 89.4% | Top 25% | 1.7x above |
| Operating Margin | 36.6% | Top 5% | 7.6x above |
| Return on Equity (ROE) | 61.2% | Top 5% | 12.8x above |
| P/E Ratio | 15.3x | N/A | - |
Financial Scorecard
| Metric | ADBE | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 45.9% | Excellent | Top 5% of sector (median: 4.9%) |
| Free Cash Flow Margin | 42.2% | Excellent | Top 5% of sector (median: 8.5%) |
| Gross Margin | 89.4% | Excellent | Top 25% of sector (median: 51.5%) |
| Debt to Equity Ratio | 7.4% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 15.3x | Adequate | Fair value |
| Free Cash Flow Yield | 9.4% | Excellent | High cash return |
Frequently Asked Questions
Q: What is ADOBE INC.'s Return on Invested Capital (ROIC)?
ADOBE INC. (ADBE) has a trailing twelve-month Return on Invested Capital (ROIC) of 45.9%. Sector median 4.9%. Source: 10-Q filed 2025-09-24.
Q: What is ADOBE INC.'s Free Cash Flow Margin?
ADOBE INC. (ADBE) has a free cash flow margin of 42.2%, generating $10.3 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-09-24.
Q: What is ADOBE INC.'s P/E ratio and how does it compare to peers?
ADOBE INC. (ADBE) trades at a P/E ratio of 15.3x, which is above the sector median of N/A. EV/Sales 4.2x. FCF yield 9.4%. Source: 10-Q filed 2025-09-24.
Q: What is ADOBE INC.'s revenue and earnings growth?
ADOBE INC. (ADBE) grew revenue by 11.0% year-over-year. EPS +13.1% YoY. Source: 10-Q filed 2025-09-24.
Q: Is ADOBE INC. buying back stock?
ADOBE INC. (ADBE) repurchased $10.5 billion of stock over the trailing twelve months. This represents a buyback yield of 9.5%. Source: 10-Q filed 2025-09-24.
Q: How does ADOBE INC. compare to competitors in Technology?
Compared to other companies in Technology, ADOBE INC. (ADBE) shows: ROIC 45.9%, sector median 4.9% (Top 5%). FCF margin 42.2%, sector median 8.5% (Top 5%). Gross margin 89.4%, 37.9pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with ADOBE INC.?
No quantitative warning flags fired for ADOBE INC. (ADBE) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-09-24.
Data Source: Data sourced from 10-Q filed 2025-09-24. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.