Market Cap
US$241.3b
Last Updated
2021/05/04 23:19 UTC
Data Sources
Company Financials +
Executive Summary
Adobe Inc. operates as a diversified software company worldwide. More Details
Snowflake Analysis
Outstanding track record with excellent 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ADBE's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-5.1%
ADBE
-5.8%
US Software
-1.5%
US Market
1 Year Return
37.8%
ADBE
44.4%
US Software
52.4%
US Market
Return vs Industry: ADBE underperformed the US Software industry which returned 49.5% over the past year.
Return vs Market: ADBE underperformed the US Market which returned 55.2% over the past year.
Shareholder returns
| ADBE | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.1% | -5.8% | -1.5% |
| 30 Day | 1.5% | 0.5% | 2.5% |
| 90 Day | 1.8% | -3.2% | 4.7% |
| 1 Year | 37.8%37.8% | 45.3%44.4% | 55.0%52.4% |
| 3 Year | 109.2%109.2% | 129.7%122.9% | 65.2%54.8% |
| 5 Year | 408.4%408.4% | 302.8%281.1% | 124.4%99.4% |
Long-Term 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
Does This Valuation Of Adobe Inc. (NASDAQ:ADBE) Imply Investors Are Overpaying?3 weeks ago | Simply Wall St
I Ran A Stock Scan For Earnings Growth And Adobe (NASDAQ:ADBE) Passed With Ease1 month ago | Simply Wall St
Have Adobe Inc. (NASDAQ:ADBE) Insiders Been Selling Their Stock?Valuation
Is Adobe undervalued compared to its fair value and its price relative to the market?
42.33x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ADBE ($490.7) is trading above our estimate of fair value ($429.54)
Significantly Below Fair Value: ADBE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ADBE is good value based on its PE Ratio (42.3x) compared to the US Software industry average (51.4x).
PE vs Market: ADBE is poor value based on its PE Ratio (42.3x) compared to the US market (20.7x).
Price to Earnings Growth Ratio
PEG Ratio: ADBE is poor value based on its PEG Ratio (3.2x)
Price to Book Ratio
PB vs Industry: ADBE is overvalued based on its PB Ratio (17.4x) compared to the US Software industry average (8x).
Future Growth
How is Adobe forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
13.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ADBE's forecast earnings growth (13.4% per year) is above the savings rate (2%).
Earnings vs Market: ADBE's earnings (13.4% per year) are forecast to grow slower than the US market (16.3% per year).
High Growth Earnings: ADBE's earnings are forecast to grow, but not significantly.
Revenue vs Market: ADBE's revenue (12.6% per year) is forecast to grow faster than the US market (9.4% per year).
High Growth Revenue: ADBE's revenue (12.6% 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 (37.9%)
Past Performance
How has Adobe performed over the past 5 years?
33.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ADBE has high quality earnings.
Growing Profit Margin: ADBE's current net profit margins (40.7%) are higher than last year (27.9%).
Past Earnings Growth Analysis
Earnings Trend: ADBE's earnings have grown significantly by 33.1% per year over the past 5 years.
Accelerating Growth: ADBE's earnings growth over the past year (70.6%) exceeds its 5-year average (33.1% per year).
Earnings vs Industry: ADBE earnings growth over the past year (70.6%) exceeded the Software industry 21.8%.
Return on Equity
High ROE: ADBE's Return on Equity (41.1%) is considered outstanding.
Financial Health
How is Adobe's financial position?
Financial Position Analysis
Short Term Liabilities: ADBE's short term assets ($7.4B) exceed its short term liabilities ($5.8B).
Long Term Liabilities: ADBE's short term assets ($7.4B) exceed its long term liabilities ($5.6B).
Debt to Equity History and Analysis
Debt Level: ADBE's debt to equity ratio (30.4%) is considered satisfactory.
Reducing Debt: ADBE's debt to equity ratio has increased from 26.8% to 30.4% over the past 5 years.
Debt Coverage: ADBE's debt is well covered by operating cash flow (149.9%).
Interest Coverage: ADBE's interest payments on its debt are well covered by EBIT (67.9x coverage).
Balance Sheet
Dividend
What is Adobe current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ADBE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ADBE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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?
3.4yrs
Average management tenure
CEO
Shantanu Narayen (56 yo)
13.42yrs
Tenure
US$45,889,954
Compensation
Mr. Shantanu Narayen has been Chairman of Adobe Inc. (formerly known as Adobe Systems Incorporated) since January 2017 and has been its Chief Executive Officer since December 01, 2007 and President since J...
CEO Compensation Analysis
Compensation vs Market: Shantanu's total compensation ($USD45.89M) is above average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Shantanu's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: ADBE's management team is considered experienced (3.4 years average tenure).
Board Members
Experienced Board: ADBE's board of directors are considered experienced (3.7 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$241.321b
- Shares outstanding: 479.33m
- Website: https://www.adobe.com
Number of Employees
Location
- Adobe Inc.
- 345 Park Avenue
- San Jose
- California
- 95110-2704
- United States
Listings
Biography
Adobe Inc. operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, teams, and enterprises to create, publish, promote, and mone...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/04 23:19 |
| End of Day Share Price | 2021/05/04 00:00 |
| Earnings | 2021/03/05 |
| Annual Earnings | 2020/11/27 |
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.