Market Cap
US$141.2b
Last Updated
2019/11/12 23:31 UTC
Data Sources
Company Financials +
Executive Summary
Adobe Inc. operates as a diversified software company worldwide.
Snowflake
Fundamentals
Reasonable growth potential with mediocre balance sheet.
Similar Companies
Share Price & News
How has Adobe's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ADBE has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.8%
ADBE
1.8%
US Software
0.5%
US Market
1 Year Return
22.2%
ADBE
29.9%
US Software
12.8%
US Market
Return vs Industry: ADBE underperformed the US Software industry which returned 29.9% over the past year.
Return vs Market: ADBE exceeded the US Market which returned 12.8% over the past year.
Shareholder returns
| ADBE | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.8% | 1.8% | 0.5% |
| 30 Day | 4.8% | 3.2% | 4.3% |
| 90 Day | 2.8% | 3.5% | 8.0% |
| 1 Year | 22.2%22.2% | 31.9%29.9% | 15.3%12.8% |
| 3 Year | 181.4%181.4% | 126.7%118.2% | 48.3%38.7% |
| 5 Year | 311.9%311.9% | 167.5%148.6% | 62.6%44.5% |
Price Volatility Vs. Market
How volatile is Adobe's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Can Adobe Inc. (NASDAQ:ADBE) Maintain Its Strong Returns?2 weeks ago | Simply Wall St
Does Adobe Inc.'s (NASDAQ:ADBE) CEO Salary Reflect Performance?3 weeks ago | Simply Wall St
Is It Time To Consider Buying Adobe Inc. (NASDAQ:ADBE)?Valuation
Is Adobe undervalued compared to its fair value and its price relative to the market?
51.19x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ADBE ($291.72) is trading above our estimate of fair value ($212.62)
Significantly Below Fair Value: ADBE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ADBE is poor value based on its PE Ratio (51.2x) compared to the Software industry average (44x).
PE vs Market: ADBE is poor value based on its PE Ratio (51.2x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: ADBE is poor value based on its PEG Ratio (3x)
Price to Book Ratio
PB vs Industry: ADBE is overvalued based on its PB Ratio (13.8x) compared to the US Software industry average (5.9x).
Next Steps
Future Growth
How is Adobe forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
17.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ADBE's forecast earnings growth (17.3% per year) is above the savings rate (2.7%).
Earnings vs Market: ADBE's earnings (17.3% per year) are forecast to grow faster than the US market (14.3% per year).
High Growth Earnings: ADBE's earnings are forecast to grow, but not significantly.
Revenue vs Market: ADBE's revenue (14% per year) is forecast to grow faster than the US market (7.3% per year).
High Growth Revenue: ADBE's revenue (14% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ADBE's Return on Equity is forecast to be high in 3 years time (38.2%)
Next Steps
Past Performance
How has Adobe performed over the past 5 years?
40.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ADBE has a high level of non-cash earnings.
Growing Profit Margin: ADBE's current net profit margins (26.1%) are lower than last year (28.1%).
Past Earnings Growth Analysis
Earnings Trend: ADBE's earnings have grown significantly by 40.3% per year over the past 5 years.
Accelerating Growth: ADBE's earnings growth over the past year (15.2%) is below its 5-year average (40.3% per year).
Earnings vs Industry: ADBE earnings growth over the past year (15.2%) underperformed the Software industry 26.8%.
Return on Equity
High ROE: ADBE's Return on Equity (27.1%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Adobe's financial position?
Financial Position Analysis
Short Term Liabilities: ADBE's short term assets ($5.8B) do not cover its short term liabilities ($7.8B)
Long Term Liabilities: ADBE's short term assets (5.8B) exceeds its long term liabilities (2.0B)
Debt to Equity History and Analysis
Debt Level: ADBE's debt to equity ratio (40.4%) is considered high
Reducing Debt: ADBE's debt to equity ratio has increased from 22.3% to 40.4% over the past 5 years.
Debt Coverage: ADBE's debt is well covered by operating cash flow (100.4%).
Interest Coverage: ADBE's interest payments on its debt are well covered by EBIT (39.8x coverage).
Balance Sheet
Inventory Level: ADBE has a low level of unsold assets or inventory.
Debt Coverage by Assets: ADBE's debt is covered by short term assets (assets are 1.4x debt).
Next Steps
Dividend
What is Adobe's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate ADBE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate ADBE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ADBE's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ADBE's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ADBE's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
What is the CEO of Adobe's salary, the management and board of directors tenure and is there insider trading?
4.3yrs
Average management tenure
CEO
Shantanu Narayen (55yo)
11.9yrs
Tenure
US$28,397,528
Compensation
Mr. Shantanu Narayen has been Chairman of Adobe Systems Incorporated since January 2017 and has been its Chief Executive Officer since December 01, 2007 and has been President since January 2005. Mr. Naray ...
CEO Compensation Analysis
Compensation vs Market: Shantanu's total compensation ($USD28.40M) is above average for companies of similar size in the US market ($USD11.04M).
Compensation vs Earnings: Shantanu's compensation has increased by more than 20% in the past year.
Management Age and Tenure
4.3yrs
Average Tenure
55yo
Average Age
Experienced Management: ADBE's management team is considered experienced (4.3 years average tenure).
Board Age and Tenure
5.2yrs
Average Tenure
59.5yo
Average Age
Experienced Board: ADBE's board of directors are considered experienced (5.2 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 2,832 |
| Max Price | US$303.36 |
| Entity | Individual |
| Role | Chairman of the Board Co-Founder & Director |
| Shares | 13,795 |
| Max Price | US$291.41 |
| Entity | Individual |
| Role | Chairman of the Board Co-Founder & Director |
| Shares | 4,000 |
| Max Price | US$296.94 |
| Entity | Individual |
| Role | Senior Key Executive Chief Product Officer & Executive VP of Creative Cloud |
| Shares | 1,500 |
| Max Price | US$271.16 |
| Entity | Individual |
| Role | Chairman of the Board Co-Founder & Director |
| Shares | 2,000 |
| Max Price | US$260.47 |
| Entity | Individual |
| Shares | 5,955 |
| Max Price | US$255.08 |
| Entity | Individual |
| Shares | 30,000 |
| Max Price | US$246.46 |
| Entity | Individual |
| Role | Chief Technology Officer Executive VP & CTO |
| Shares | 25,000 |
| Max Price | US$240.00 |
| Entity | Individual |
| Role | Senior Key Executive Executive VP & General Manager of Digital Media |
| Shares | 34,764 |
| Max Price | US$238.52 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 75 |
| Max Price | US$216.58 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Bryan Lamkin (58yo)
Executive VP & General Manager of Digital Media
- Tenure: 4.2yrs
- Compensation: US$8.19m
John Warnock (78yo)
Co-Founder & Director
- Tenure: 0yrs
- Compensation: US$323.72k
Charles Geschke (80yo)
Co-Founder & Director
- Tenure: 0yrs
- Compensation: US$323.72k
Cindy Stoddard (62yo)
Senior VP & Chief Information Officer
- Tenure: 3.4yrs
Shantanu Narayen (55yo)
Chairman
- Tenure: 11.9yrs
- Compensation: US$28.40m
Mike Saviage
Vice President of Investor Relations
- Tenure: 24yrs
John Murphy (50yo)
Executive VP & CFO
- Tenure: 1.6yrs
- Compensation: US$7.82m
Scott Belsky (39yo)
Chief Product Officer & Executive VP of Creative Cloud
- Tenure: 1.9yrs
- Compensation: US$12.51m
Abhay Parasnis (44yo)
Executive VP & CTO
- Tenure: 4.3yrs
- Compensation: US$7.21m
Mark Garfield (48yo)
VP, Chief Accounting Officer & Corporate Controller
- Tenure: 0.9yrs
Board Members
John Warnock (78yo)
Co-Founder & Director
- Tenure: 0yrs
- Compensation: US$323.72k
Charles Geschke (80yo)
Co-Founder & Director
- Tenure: 0yrs
- Compensation: US$323.72k
Frank Calderoni (62yo)
Independent Director
- Tenure: 7.5yrs
- Compensation: US$370.09k
Dan Rosensweig (57yo)
Independent Director
- Tenure: 10.8yrs
- Compensation: US$350.97k
James Daley (77yo)
Lead Director
- Tenure: 2.8yrs
- Compensation: US$397.35k
Shantanu Narayen (55yo)
Chairman
- Tenure: 11.9yrs
- Compensation: US$28.40m
Amy Banse (61yo)
MD & Director
- Tenure: 7.5yrs
- Compensation: US$354.65k
Laura Desmond (53yo)
Independent Director
- Tenure: 7.5yrs
- Compensation: US$342.35k
Dave Ricks (51yo)
Independent Director
- Tenure: 1.6yrs
- Compensation: US$311.73k
Leeny Oberg (58yo)
Independent Director
- Tenure: 0.8yrs
Company Information
Adobe Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Adobe Inc.
- Ticker: ADBE
- Exchange: NasdaqGS
- Founded: 1982
- Industry: Application Software
- Sector: Software
- Market Cap: US$141.215b
- Shares outstanding: 484.08m
- Website: https://www.adobe.com
Number of Employees
Location
- Adobe Inc.
- 345 Park Avenue
- San Jose
- California
- 95110
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ADBE | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Aug 1986 |
| ADB | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Aug 1986 |
| ADB | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Aug 1986 |
| ADBE | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Aug 1986 |
| ADBE * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Aug 1986 |
| ADBE | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Aug 1986 |
| ADBE | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH 11 REP 1 COM USD0.0001 | AR | ARS | Apr 2019 | |
| ADBE34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REP 0.2 COM USD0.0001 | BR | BRL | May 2019 |
Biography
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, publ ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/12 23:31 |
| End of Day Share Price | 2019/11/12 00:00 |
| Earnings | 2019/08/30 |
| Annual Earnings | 2018/11/30 |
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.