Market Cap
US$183.1b
Last Updated
2020/02/17 23:31 UTC
Data Sources
Company Financials +
Executive Summary
Adobe Inc. operates as a diversified software company worldwide.
Rewards
Risk Analysis
No risks detected for ADBE from our risk checks.
Snowflake Analysis
Reasonable growth potential with adequate 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
2.6%
ADBE
0.2%
US Software
0.9%
US Market
1 Year Return
46.3%
ADBE
42.1%
US Software
20.0%
US Market
Return vs Industry: ADBE exceeded the US Software industry which returned 42.3% over the past year.
Return vs Market: ADBE exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| ADBE | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.6% | 0.2% | 0.9% |
| 30 Day | 8.6% | 7.7% | 1.4% |
| 90 Day | 26.3% | 17.8% | 8.8% |
| 1 Year | 46.3%46.3% | 43.7%42.1% | 22.5%20.0% |
| 3 Year | 217.3%217.3% | 152.0%141.7% | 49.9%40.3% |
| 5 Year | 386.1%386.1% | 224.3%201.1% | 73.2%54.1% |
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 day ago | Simply Wall St
Is Adobe Inc. (NASDAQ:ADBE) Worth US$380 Based On Its Intrinsic Value?1 week ago | Simply Wall St
How Much is Adobe Inc.'s (NASDAQ:ADBE) CEO Getting Paid?2 weeks ago | Simply Wall St
Abhay Parasnis Is The Executive VP & CTO of Adobe Inc. (NASDAQ:ADBE) And They Just Sold 52% Of Their SharesValuation
Is Adobe undervalued compared to its fair value and its price relative to the market?
62.56x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ADBE ($379.67) is trading above our estimate of fair value ($288.02)
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 (62.6x) compared to the Software industry average (52.1x).
PE vs Market: ADBE is poor value based on its PE Ratio (62.6x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: ADBE is poor value based on its PEG Ratio (3.8x)
Price to Book Ratio
PB vs Industry: ADBE is overvalued based on its PB Ratio (17.4x) compared to the US Software industry average (6x).
Next Steps
Future Growth
How is Adobe forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
16.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ADBE's forecast earnings growth (16.3% per year) is above the savings rate (1.7%).
Earnings vs Market: ADBE's earnings (16.3% per year) are forecast to grow faster than the US market (14.6% per year).
High Growth Earnings: ADBE's earnings are forecast to grow, but not significantly.
Revenue vs Market: ADBE's revenue (12.9% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: ADBE's revenue (12.9% 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 (34.1%)
Next Steps
Past Performance
How has Adobe performed over the past 5 years?
37.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ADBE has high quality earnings.
Growing Profit Margin: ADBE's current net profit margins (26.4%) are lower than last year (28.7%).
Past Earnings Growth Analysis
Earnings Trend: ADBE's earnings have grown significantly by 37.9% per year over the past 5 years.
Accelerating Growth: ADBE's earnings growth over the past year (14%) is below its 5-year average (37.9% per year).
Earnings vs Industry: ADBE earnings growth over the past year (14%) underperformed the Software industry 17.1%.
Return on Equity
High ROE: ADBE's Return on Equity (28%) 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 ($6.5B) do not cover its short term liabilities ($8.2B).
Long Term Liabilities: ADBE's short term assets ($6.5B) exceed its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: ADBE's debt to equity ratio (39.3%) is considered satisfactory.
Reducing Debt: ADBE's debt to equity ratio has increased from 22.4% to 39.3% over the past 5 years.
Debt Coverage: ADBE's debt is well covered by operating cash flow (106.8%).
Interest Coverage: ADBE's interest payments on its debt are well covered by EBIT (36.8x 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 1.6x 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
How experienced are the management team and are they aligned to shareholders interests?
4.5yrs
Average management tenure
CEO
Shantanu Narayen (55yo)
12.2yrs
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 ($USD10.78M).
Compensation vs Earnings: Shantanu's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 12.2yrs | US$28.40m | 0.086% $157.7m | |
| Co-Founder & Director | 37.1yrs | US$323.72k | 0.095% $173.6m | |
| Co-Founder & Director | 37.1yrs | US$323.72k | 0.022% $40.9m | |
| Executive VP & CFO | 1.8yrs | US$7.82m | 0.0027% $4.9m | |
| Executive VP & General Manager of Digital Media | 4.4yrs | US$8.19m | 0.020% $37.4m | |
| Chief Product Officer & Executive VP of Creative Cloud | 2.2yrs | US$12.51m | 0.0030% $5.4m | |
| VP, Chief Accounting Officer & Corporate Controller | 1.2yrs | no data | 0.000020% $36.6k | |
| Executive VP of Strategy & Growth and CTO | 4.6yrs | US$7.21m | 0.0072% $13.2m | |
| Senior VP & Chief Information Officer | 3.7yrs | no data | no data | |
| Vice President of Investor Relations | 24.3yrs | no data | no data |
4.5yrs
Average Tenure
55yo
Average Age
Experienced Management: ADBE's management team is considered experienced (4.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 12.2yrs | US$28.40m | 0.086% $157.7m | |
| Co-Founder & Director | 37.1yrs | US$323.72k | 0.095% $173.6m | |
| Co-Founder & Director | 37.1yrs | US$323.72k | 0.022% $40.9m | |
| Independent Director | 7.8yrs | US$370.09k | 0.0056% $10.3m | |
| Independent Director | 11.1yrs | US$350.97k | 0.0030% $5.4m | |
| Lead Director | 3.1yrs | US$397.35k | 0.0071% $12.9m | |
| MD & Director | 7.8yrs | US$354.65k | 0.0072% $13.2m | |
| Independent Director | 7.8yrs | US$342.35k | 0.0056% $10.3m | |
| Independent Director | 1.8yrs | US$311.73k | 0.00028% $512.5k | |
| Independent Director | 1.1yrs | no data | 0.000060% $109.8k |
7.8yrs
Average Tenure
59.5yo
Average Age
Experienced Board: ADBE's board of directors are considered experienced (7.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ADBE insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$183.051b
- Shares outstanding: 482.13m
- 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 |
| ADS-U | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | 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, publish, promote, and monetize their digital content. Its flagship product is Creative Cloud, a subscription service that allows customer to download and access 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 Experience 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, marketing automation, 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 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 offers 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, software vendors and developers, 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 23:31 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/11/29 |
| Annual Earnings | 2019/11/29 |
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.