Adobe
Adobe Inc. operates as a diversified software company worldwide. The last earnings update was 18 days ago. More info.
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ADBE Share Price and Events
ADBE Value
Is Adobe undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Adobe
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Adobe.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 26 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 11% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 3% |
| Equity Risk Premium | S&P Global | 7.1% |
| Software Unlevered Beta | Simply Wall St/ S&P Global | 1.13 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.126 (1 + (1- 21%) (1.55%)) |
1.139 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.14 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.139 * 7.05%) |
10.98% |
Discounted Cash Flow Calculation for NasdaqGS:ADBE using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Adobe is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Levered FCF (USD, Millions) | 4,472.21 | 5,249.69 | 6,161.53 | 7,208.99 | 8,362.42 |
| Source | Analyst x17 | Analyst x10 | Est @ 17.37% | Est @ 17%, capped from 17.37% | Est @ 16%, capped from 17.37% |
|
Present Value Discounted (@ 10.98%) |
4,029.65 | 4,262.11 | 4,507.39 | 4,751.78 | 4,966.61 |
| Present value of next 5 years cash flows | $22,517.53 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= $8,362.42 × (1 + 2.95%) ÷ (10.98% – 2.95%) |
$107,178.58 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= $107,178.58 ÷ (1 + 10.98%)5 |
$63,655.44 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= $22,517.53 + $63,655.44 |
$86,172.97 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $86,172.97 / 488.13 |
$176.54 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $176.54 |
| Current discount | Discount to share price of
$248.87
= -1 x ($248.87 - $176.54) / $176.54 |
-41% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Adobe is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Adobe's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Adobe's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-08-31) in USD | $4.91 |
| NasdaqGS:ADBE Share Price ** | NasdaqGS (2018-10-12) in USD | $248.87 |
| United States of America Software Industry PE Ratio | Median Figure of 68 Publicly-Listed Software Companies | 49.55x |
| United States of America Market PE Ratio | Median Figure of 2,938 Publicly-Listed Companies | 19.24x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Adobe.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:ADBE Share Price ÷ EPS (both in USD) = 248.87 ÷ 4.91 |
50.67x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Adobe is overvalued based on earnings compared to the US Software industry average.
- Adobe is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Adobe's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 50.67x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts |
17.4%per year |
| United States of America Software Industry PEG Ratio | Median Figure of 54 Publicly-Listed Software Companies | 2.58x |
| United States of America Market PEG Ratio | Median Figure of 2,056 Publicly-Listed Companies | 1.29x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 50.67x ÷ 17.4% |
2.91x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Adobe is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Adobe's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-08-31) in USD | $18.12 |
| NasdaqGS:ADBE Share Price * | NasdaqGS (2018-10-12) in USD | $248.87 |
| United States of America Software Industry PB Ratio | Median Figure of 205 Publicly-Listed Software Companies | 5.32x |
| United States of America Market PB Ratio | Median Figure of 4,936 Publicly-Listed Companies | 1.93x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:ADBE Share Price ÷ Book Value per Share (both in USD) = 248.87 ÷ 18.12 |
13.73x |
* Primary Listing of Adobe.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Adobe is overvalued based on assets compared to the US Software industry average.
Value checks
We assess Adobe's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Software industry average (and greater than 0)? (1 check) Adobe has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
ADBE Future Performance
How is Adobe expected to perform in the next 1 to 3 years based on estimates from 26 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Adobe's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
- Adobe's earnings growth is expected to exceed the United States of America market average.
- Adobe's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:ADBE Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts | 17.4% |
| NasdaqGS:ADBE Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 26 Analysts | 15.2% |
| United States of America Software Industry Earnings Growth Rate | Market Cap Weighted Average | 22.9% |
| United States of America Software Industry Revenue Growth Rate | Market Cap Weighted Average | 10.9% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 15.9% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.6% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 26 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-11-30 | 18,188 | 5,499 | 1 | |
| 2021-11-30 | 14,409 | 5,827 | 4,578 | 2 |
| 2020-11-30 | 12,457 | 5,507 | 3,797 | 17 |
| 2019-11-30 | 10,731 | 4,752 | 3,097 | 26 |
| 2018-11-30 | 8,994 | 4,025 | 2,628 | 26 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-08-31 | 8,572 | 3,755 | 2,414 |
| 2018-06-01 | 8,122 | 3,504 | 2,167 |
| 2018-03-02 | 7,699 | 3,172 | 1,879 |
| 2017-12-01 | 7,302 | 2,913 | 1,694 |
| 2017-09-01 | 6,903 | 2,775 | 1,592 |
| 2017-06-02 | 6,526 | 2,589 | 1,443 |
| 2017-03-03 | 6,153 | 2,433 | 1,313 |
| 2016-12-02 | 5,854 | 2,200 | 1,169 |
| 2016-09-02 | 5,552 | 1,959 | 992 |
| 2016-06-03 | 5,306 | 1,801 | 896 |
| 2016-03-04 | 5,070 | 1,784 | 799 |
| 2015-11-27 | 4,796 | 1,470 | 630 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 26 Analyst Estimates (S&P Global) | See Below |
All data from Adobe Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-11-30 | 11.11 | 11.11 | 11.11 | 1.00 |
| 2021-11-30 | 9.22 | 9.47 | 8.96 | 2.00 |
| 2020-11-30 | 7.68 | 8.49 | 6.95 | 9.00 |
| 2019-11-30 | 6.28 | 6.87 | 5.74 | 14.00 |
| 2018-11-30 | 5.29 | 5.36 | 5.26 | 15.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-08-31 | 4.91 |
| 2018-06-01 | 4.40 |
| 2018-03-02 | 3.81 |
| 2017-12-01 | 3.43 |
| 2017-09-01 | 3.22 |
| 2017-06-02 | 2.91 |
| 2017-03-03 | 2.64 |
| 2016-12-02 | 2.35 |
| 2016-09-02 | 1.99 |
| 2016-06-03 | 1.79 |
| 2016-03-04 | 1.60 |
| 2015-11-27 | 1.26 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Adobe's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Adobe has a total score of 4/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
ADBE Past Performance
How has Adobe performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Adobe has delivered over 20% year on year earnings growth in the past 5 years.
- Adobe's 1-year earnings growth exceeds its 5-year average (51.8% vs 44.2%)
- Adobe's earnings growth has exceeded the US Software industry average in the past year (51.8% vs 7.5%).
Earnings and Revenue History
All data from Adobe Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-08-31 | 8,571.98 | 2,414.08 | 3,173.47 | 1,445.88 |
| 2018-06-01 | 8,121.98 | 2,167.36 | 3,016.82 | 1,362.48 |
| 2018-03-02 | 7,698.81 | 1,878.58 | 2,902.59 | 1,287.75 |
| 2017-12-01 | 7,301.51 | 1,693.95 | 2,822.30 | 1,224.06 |
| 2017-09-01 | 6,903.33 | 1,592.02 | 2,721.86 | 1,157.88 |
| 2017-06-02 | 6,526.22 | 1,443.24 | 2,645.21 | 1,090.78 |
| 2017-03-03 | 6,152.74 | 1,312.92 | 2,536.10 | 1,023.86 |
| 2016-12-02 | 5,854.43 | 1,168.78 | 2,486.40 | 975.99 |
| 2016-09-02 | 5,552.42 | 991.87 | 2,418.69 | 938.65 |
| 2016-06-03 | 5,306.22 | 895.55 | 2,342.46 | 908.86 |
| 2016-03-04 | 5,069.67 | 798.97 | 2,298.75 | 884.43 |
| 2015-11-27 | 4,795.51 | 629.55 | 2,216.72 | 862.73 |
| 2015-08-28 | 4,562.44 | 494.98 | 2,182.03 | 855.90 |
| 2015-05-29 | 4,350.08 | 365.20 | 2,185.58 | 849.29 |
| 2015-02-27 | 4,256.13 | 306.24 | 2,184.34 | 850.34 |
| 2014-11-28 | 4,147.07 | 268.40 | 2,195.64 | 844.35 |
| 2014-08-29 | 4,115.44 | 245.58 | 2,223.14 | 835.86 |
| 2014-05-30 | 4,105.15 | 283.90 | 2,191.71 | 832.51 |
| 2014-02-28 | 4,047.49 | 271.91 | 2,158.82 | 826.52 |
| 2013-11-29 | 4,055.24 | 289.99 | 2,140.58 | 826.63 |
| 2013-08-30 | 4,166.97 | 447.00 | 2,084.31 | 816.48 |
| 2013-05-31 | 4,252.43 | 565.35 | 2,046.40 | 796.93 |
| 2013-03-01 | 4,366.33 | 712.68 | 2,020.38 | 774.73 |
| 2012-11-30 | 4,403.68 | 832.78 | 1,951.14 | 742.82 |
| 2012-08-31 | 4,402.41 | 784.16 | 1,925.43 | 743.18 |
| 2012-06-01 | 4,335.04 | 777.91 | 1,885.84 | 735.07 |
| 2012-03-02 | 4,233.77 | 783.47 | 1,833.01 | 737.38 |
| 2011-12-02 | 4,216.26 | 832.85 | 1,800.43 | 738.05 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Adobe has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- Adobe used its assets more efficiently than the US Software industry average last year based on Return on Assets.
- Adobe has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Adobe's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Adobe has a total score of 6/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
ADBE Health
How is Adobe's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Adobe's finances.
The net worth of a company is the difference between its assets and liabilities.
- Adobe is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Adobe's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 3.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Adobe Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-08-31 | 8,861.93 | 1,884.97 | 4,944.47 |
| 2018-06-01 | 8,705.58 | 1,884.13 | 6,334.06 |
| 2018-03-02 | 8,634.03 | 1,883.31 | 6,147.97 |
| 2017-12-01 | 8,459.87 | 1,882.48 | 5,819.77 |
| 2017-09-01 | 8,170.43 | 1,889.22 | 5,368.49 |
| 2017-06-02 | 7,804.00 | 1,888.40 | 4,931.51 |
| 2017-03-03 | 7,588.69 | 1,884.07 | 4,647.62 |
| 2016-12-02 | 7,424.84 | 1,892.20 | 4,761.30 |
| 2016-09-02 | 7,277.95 | 1,916.59 | 4,446.40 |
| 2016-06-03 | 7,248.61 | 1,918.39 | 4,318.41 |
| 2016-03-04 | 7,081.20 | 1,916.83 | 4,097.89 |
| 2015-11-27 | 7,001.58 | 1,907.23 | 3,988.08 |
| 2015-08-28 | 6,841.33 | 1,906.09 | 3,668.73 |
| 2015-05-29 | 6,610.10 | 1,904.38 | 3,413.25 |
| 2015-02-27 | 6,589.02 | 1,901.62 | 3,176.82 |
| 2014-11-28 | 6,775.91 | 1,514.32 | 3,739.49 |
| 2014-08-29 | 6,731.26 | 1,508.26 | 3,520.20 |
| 2014-05-30 | 6,636.89 | 1,506.29 | 3,330.21 |
| 2014-02-28 | 6,610.88 | 1,509.73 | 3,132.09 |
| 2013-11-29 | 6,724.63 | 1,513.97 | 3,173.75 |
| 2013-08-30 | 6,834.76 | 1,519.83 | 3,163.94 |
| 2013-05-31 | 6,927.30 | 1,525.64 | 3,865.71 |
| 2013-03-01 | 6,805.34 | 1,531.41 | 3,660.69 |
| 2012-11-30 | 6,665.18 | 1,508.16 | 3,538.35 |
| 2012-08-31 | 6,438.69 | 1,510.97 | 3,247.36 |
| 2012-06-01 | 6,099.65 | 1,510.09 | 2,998.12 |
| 2012-03-02 | 5,986.30 | 1,512.21 | 2,766.12 |
| 2011-12-02 | 5,783.11 | 1,514.31 | 2,911.69 |
- Adobe's level of debt (21.3%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (22.2% vs 21.3% today).
- Debt is well covered by operating cash flow (199.2%, greater than 20% of total debt).
- Adobe earns more interest than it pays, coverage of interest payments is not a concern.
Financial health checks
We assess Adobe's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Adobe has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
ADBE Dividends
What is Adobe's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Adobe
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Adobe's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Adobe's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 26 Analyst Estimates (S&P Global) | See Below |
| United States of America Software Industry Average Dividend Yield | Market Cap Weighted Average of 23 Stocks | 1.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 1971 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.5% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2022-11-30 | ||
| 2021-11-30 | ||
| 2020-11-30 | 0.00 | 4.00 |
| 2019-11-30 | 0.00 | 5.00 |
| 2018-11-30 | 0.00 | 6.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Adobe has not reported any payouts.
- Unable to verify if Adobe's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Adobe's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Adobe afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Adobe has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
ADBE Management
CEO
| COMPENSATION | $21,934,030 |
| AGE | 54 |
| TENURE AS CEO | 10.8 years |
CEO Bio
Mr. Shantanu Narayen has been Chairman of Adobe Systems Incorporated since February 1, 2017 and has been its Chief Executive Officer since December 01, 2007 and has been President since January 2005. Mr. Narayen has been Chief Executive Officer of Adobe Systems Software Ireland Limited since 2007 and serves as its President. He serves as Senior Advisor of KKR & Co. Inc. (formerly, KKR & Co. L.P.). He served as the Chief Operating Officer of Adobe Systems Inc. from January 2005 to December 2007 and served as its Executive Vice President of Worldwide Product Marketing & Development from March 2001 to January 2005. He held key product research and development positions within Adobe, including Senior Vice President of worldwide product development and Vice President and General Manager of the engineering technology group. Before joining Adobe in 1998, Mr. Narayen co-founded Pictra, Inc. He served as director of desktop and collaboration products at Silicon Graphics, Inc. and served various senior management positions at Apple Computer, Inc. He has been Director of Adobe Systems Incorporated since December 01, 2007 and Pfizer Inc. since September 27, 2013. He has been Lead Independent Director of Pfizer Inc., since 2018. He serves as a Director of Adobe Systems Software Ireland Limited and Stario.com. He served as Director of Metavante Technologies, Inc. since November 14, 2007 and Dell Inc. from September 2009 to October 29, 2013. Mr. Narayen is a member of the U.S. President's Management Advisory Board, established in 2010 to provide advice on how to implement best business practices, including the application of technology, on matters related to federal government management and operation. He serves on the Advisory Board of the Haas School of Business, University of California at Berkeley and is President of the board of the Adobe Foundation, which funds philanthropic initiatives around the world. He holds five patents and is a frequent speaker at industry and academic events. Mr. Narayen is Vice Chairman of US-India Strategic Partnership Forum. Mr. Narayen holds Bachelor's Degree, B.S. in Electronics Engineering from Osmania University in India, a Master's degree, M.S. in Computer Science from Bowling Green State University and a Master's Degree, M.B.A. in Business Administration from the Haas School of Business, University of California, Berkeley.
CEO Compensation
- Shantanu's compensation has been consistent with company performance over the past year.
- Shantanu's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Adobe management team in years:
- The average tenure for the Adobe management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Shantanu Narayen
Chairman
$22M
54
10.8 yrs
John Warnock
Co-Founder & Director
$331K
77
36.8 yrs
Charles Geschke
Co-Founder & Director
$331K
79
36.8 yrs
Bryan Lamkin
Executive VP & General Manager of Digital Media
$7M
57
3.1 yrs
Matt Thompson
Executive Vice President of Worldwide Field Operations
$8M
59
11.8 yrs
Brad Rencher
Executive VP & GM of Digital Experience
$7M
44
8.8 yrs
John Murphy
Executive VP & CFO
49
0.5 yrs
Abhay Parasnis
Executive VP & CTO
$7M
43
3.3 yrs
Cindy Stoddard
Senior VP & Chief Information Officer
61
2.3 yrs
Mike Saviage
Vice President of Investor Relations
22.9 yrs
Board of Directors Tenure
Average tenure and age of the Adobe board of directors in years:
- The tenure for the Adobe board of directors is about average.
Board of Directors
Shantanu Narayen
Chairman
$22M
54
1.8 yrs
John Warnock
Co-Founder & Director
$331K
77
35.8 yrs
Charles Geschke
Co-Founder & Director
$331K
79
35.8 yrs
Ned Barnholt
Independent Director
$353K
74
13.1 yrs
Amy Banse
MD & Director
$338K
60
6.4 yrs
Frank Calderoni
Director
$363K
61
6.4 yrs
James Daley
Lead Director
$383K
76
1.8 yrs
Mike Cannon
Director
$29K
65
Robert Burgess
Director
$343K
60
12.8 yrs
Dan Rosensweig
Director
$360K
56
9.8 yrs
Who owns this company?
Recent Insider Trading
- Adobe insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Start | End | Shares | Value (USD) |
|---|---|---|---|---|---|---|---|
| 26. Sep 18 | Buy | David Ricks | Individual | 24. Sep 18 | 24. Sep 18 | 75 | $19,607.41 |
| 27. Jul 18 | Sell | Bradley Rencher | Individual | 25. Jul 18 | 25. Jul 18 | -15,000 | $-3,935,172.00 |
| 19. Jun 18 | Sell | Charles Geschke | Individual | 18. Jun 18 | 18. Jun 18 | -6,000 | $-1,531,155.00 |
| 20. Apr 18 | Sell | Charles Geschke | Individual | 20. Apr 18 | 20. Apr 18 | -16,000 | $-3,589,624.40 |
| 13. Apr 18 | Sell | John Warnock | Individual | 11. Apr 18 | 11. Apr 18 | -965 | $-215,940.08 |
| 02. Apr 18 | Sell | John Warnock | Individual | 29. Mar 18 | 29. Mar 18 | -14,000 | $-3,031,363.20 |
| 21. Mar 18 | Sell | John Warnock | Individual | 19. Mar 18 | 20. Mar 18 | -5,000 | $-1,124,723.00 |
| 01. Feb 18 | Sell | Bryan Lamkin | Individual | 31. Jan 18 | 31. Jan 18 | -30,000 | $-5,972,355.00 |
| 29. Jan 18 | Sell | Matthew Thompson | Individual | 26. Jan 18 | 26. Jan 18 | -50,775 | $-10,158,884.29 |
| 22. Dec 17 | Sell | John Warnock | Individual | 21. Dec 17 | 21. Dec 17 | -4,600 | $-802,932.30 |
| 19. Dec 17 | Buy | Amy Banse | Individual | 18. Dec 17 | 18. Dec 17 | 1,125 | $199,519.54 |
| 25. Oct 17 | Sell | Matthew Thompson | Individual | 23. Oct 17 | 23. Oct 17 | -2,190 | $-379,784.11 |
| 24. Oct 17 | Sell | John Warnock | Individual | 20. Oct 17 | 20. Oct 17 | -6,800 | $-1,184,526.68 |
Management checks
We assess Adobe's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Adobe has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
ADBE News
External News
Simply Wall St News
Is It Too Late To Buy Adobe Inc (NASDAQ:ADBE) At Its October Price?
Adobe Inc (NASDAQ:ADBE) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of $237.91 is based on unrealistic expectations. … Where's the growth. … The excitement around Adobe's growth potential is not unfounded
Simply Wall St - – Full articleHow Adobe Systems Incorporated's (NASDAQ:ADBE) Earnings Growth Stacks Up Against The Industry
Investors with a long-term horizong may find it valuable to assess Adobe Systems Incorporated's (NASDAQ:ADBE) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. … Below is my commentary, albiet very simple and high-level, on how Adobe Systems is currently performing. … Check out our latest analysis for Adobe Systems?
Simply Wall St - – Full articleAdobe Systems Incorporated (NASDAQ:ADBE)'s Return on Capital
and looking to gauge the potential return on investment in Adobe Systems Incorporated (NASDAQ:ADBE). … This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Therefore, looking at how efficiently Adobe Systems is able to use capital to create earnings will help us understand your potential return.
Simply Wall St - – Full articleHow Should Investors React To Adobe Systems Incorporated's (NASDAQ:ADBE) CEO Pay?
Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor. … CEOs leading companies of similar size and profitability
Simply Wall St - – Full articleCan Adobe Systems Incorporated's (NASDAQ:ADBE) ROE Continue To Surpass The Industry Average?
and want to learn about Return on Equity using a real-life example. … If ADBE borrows debt to invest in its business, its profits will be higher. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface.
Simply Wall St - – Full articleCan Adobe Systems Incorporated (NASDAQ:ADBE) Save Your Portfolio?
Longstanding stocks such as Adobe Systems Incorporated has fared well over time in a volatile stock market, which is why it’s my top pick to invest in. … See our latest analysis for Adobe Systems. … Adobe Systems Incorporated operates as a diversified software company worldwide
Simply Wall St - – Full articleWho Owns Adobe Systems Incorporated (NASDAQ:ADBE)?
In this article, I will take a quick look at Adobe Systems Incorporated’s (NASDAQ:ADBE) recent ownership structure – an unconventional investing subject, but an important one. … Ownership structure of a company has been found to affect share performance over time. … It also impacts the trading environment of company shares, which is more of a concern for short-term investors.
Simply Wall St - – Full articleWill Adobe Systems Incorporated's (NASDAQ:ADBE) Earnings Grow In The Next 12 Months?
Based on Adobe Systems Incorporated's (NASDAQ:ADBE) earnings update in June 2018,. … with profits predicted to increase by 32.58% next year … the past 5-year average growth rate of 18.63%
Simply Wall St - – Full articleShould You Buy Adobe Systems Incorporated (NASDAQ:ADBE) At US$242?
Today we're going to take a look at the well-established Adobe Systems Incorporated (NASDAQ:ADBE). … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on Adobe Systems’s outlook and valuation to see if the opportunity still exists.
Simply Wall St - – Full articleDoes Adobe Systems Incorporated's (NASDAQ:ADBE) June Stock Price Reflect Its Future Growth?
Adobe Systems Incorporated (NASDAQ:ADBE) is considered a high growth stock. … However its last closing price of $243.63 left investors wondering whether this growth has already been factored into the share price. … Adobe Systems's extremely high growth potential in the near future is attracting investors
Simply Wall St - – Full articleADBE Company Info
Map
Description
Adobe Inc. operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. Its flagship product is Creative Cloud, a subscription service that allows customers to download and install the latest versions of its creative products. This segment serves traditional content creators, Web application developers, and digital media professionals, as well as their management in marketing departments and agencies, companies, and publishers. The company’s Digital Marketing segment offers solutions for how digital advertising and marketing are created, managed, executed, measured, and optimized. This segment provides analytics, social marketing, targeting, media optimization, digital experience management, cross-channel campaign management, audience management, and video delivery and monetization solutions to digital marketers, advertisers, publishers, merchandisers, Web analysts, chief marketing officers, chief information officers, and chief revenue officers. Its Print and Publishing segment offers products and services, such as e-learning solutions, technical document publishing, Web application development, and high-end printing, as well as publishing needs of technical and business, and original equipment manufacturers (OEMs) printing businesses. The company markets and licenses its products and services directly to enterprise customers through its sales force, as well as to end-users through app stores and through its Website at adobe.com. It also distributes products and services through a network of distributors, value-added resellers, systems integrators, independent software vendors, retailers, and OEMs. The company was formerly known as Adobe Systems Incorporated and changed its name to Adobe Inc. in October 2018. The company was founded in 1982 and is headquartered in San Jose, California.
Details
| Name: | Adobe Inc. |
| ADBE | |
| Exchange: | NasdaqGS |
| Founded: | 1982 |
| $121,481,790,864 | |
| 488,133,527 | |
| Website: | http://www.adobe.com |
| Address: |
Adobe Inc. 345 Park Avenue, San Jose, California, 95110, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | ADBE | Common Stock | Nasdaq Global Select | US | USD | 13. Aug 1986 | |
| DB | ADB | Common Stock | Deutsche Boerse AG | DE | EUR | 13. Aug 1986 | |
| SWX | ADBE | Common Stock | SIX Swiss Exchange | CH | CHF | 13. Aug 1986 | |
| WBAG | ADBE | Common Stock | Wiener Boerse AG | AT | EUR | 13. Aug 1986 | |
| BMV | ADBE * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 13. Aug 1986 |
Number of employees
Current staff
Industry
| Application Software | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2018/10/14 21:01 |
| End of day share price update: | 2018/10/12 00:00 |
| Last estimates confirmation: | 2018/10/12 |
| Last earnings filing: | 2018/09/26 |
| Last earnings reported: | 2018/08/31 |
| Last annual earnings reported: | 2017/12/01 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
