ADBE Stock Overview
Adobe Inc. operates as a diversified software company worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$368.48|
|52 Week High||US$699.54|
|52 Week Low||US$338.00|
|1 Month Change||-16.50%|
|3 Month Change||-19.58%|
|1 Year Change||-37.87%|
|3 Year Change||21.22%|
|5 Year Change||159.09%|
|Change since IPO||29,014.47%|
Recent News & Updates
Adobe: The Best Software Play
Adobe is a market darling, returning 16% per annum since 2005. With shares down 33% since January, we think it is finally cheap. Adobe's Digital Experience segment looks set to grow well while Digital Media remains strong. We do not believe the current economic slowdown will materially impact Adobe. We believe Adobe is currently trading at a 33% discount to its future value.
Is Adobe Stock A Buy After Earnings? No, Watch Out For Negative Surprises
Adobe announced better-than-expected earnings for the recent quarter, but its share price declined the day after its results announcement. ADBE's Q3 FY 2022 guidance was below expectations, and there are concerns that the company's Q4 FY 2022 performance might offer more negative surprises. Adobe is a Hold; its attractiveness as a long-term investment means that it isn't a Sell despite a challenging business environment in the near term.
|ADBE||US Software||US Market|
Return vs Industry: ADBE underperformed the US Software industry which returned -23.7% over the past year.
Return vs Market: ADBE underperformed the US Market which returned -21.2% over the past year.
|ADBE Average Weekly Movement||6.2%|
|Software Industry Average Movement||11.0%|
|Market Average Movement||8.1%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||3.3%|
Stable Share Price: ADBE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: ADBE's weekly volatility (6%) has been stable over the past year.
About the Company
Adobe Inc. operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform.
Adobe Fundamentals Summary
|ADBE fundamental statistics|
Is ADBE overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ADBE income statement (TTM)|
|Cost of Revenue||US$2.03b|
Last Reported Earnings
Jun 03, 2022
Next Earnings Date
Sep 15, 2022
|Earnings per share (EPS)||10.45|
|Net Profit Margin||29.29%|
How did ADBE perform over the long term?See historical performance and comparison
Is ADBE undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for ADBE?
Other financial metrics that can be useful for relative valuation.
|What is ADBE's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does ADBE's PE Ratio compare to its peers?
|ADBE PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
CDNS Cadence Design Systems
Price-To-Earnings vs Peers: ADBE is good value based on its Price-To-Earnings Ratio (35.3x) compared to the peer average (77.9x).
Price to Earnings Ratio vs Industry
How does ADBE's PE Ratio compare vs other companies in the US Software Industry?
Price-To-Earnings vs Industry: ADBE is good value based on its Price-To-Earnings Ratio (35.3x) compared to the US Software industry average (38.2x)
Price to Earnings Ratio vs Fair Ratio
What is ADBE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||35.3x|
|Fair PE Ratio||43.4x|
Price-To-Earnings vs Fair Ratio: ADBE is good value based on its Price-To-Earnings Ratio (35.3x) compared to the estimated Fair Price-To-Earnings Ratio (43.4x).
Share Price vs Fair Value
What is the Fair Price of ADBE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: ADBE ($368.48) is trading below our estimate of fair value ($623.32)
Significantly Below Fair Value: ADBE is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: ADBE is poor value based on its PEG Ratio (2.2x)
Discover undervalued companies
How is Adobe forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ADBE's forecast earnings growth (16.2% per year) is above the savings rate (1.9%).
Earnings vs Market: ADBE's earnings (16.2% per year) are forecast to grow faster than the US market (13.6% per year).
High Growth Earnings: ADBE's earnings are forecast to grow, but not significantly.
Revenue vs Market: ADBE's revenue (11.8% per year) is forecast to grow faster than the US market (8.2% per year).
High Growth Revenue: ADBE's revenue (11.8% 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 very high in 3 years time (43.9%).
Discover growth companies
How has Adobe performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ADBE has high quality earnings.
Growing Profit Margin: ADBE's current net profit margins (29.3%) are lower than last year (38.8%).
Past Earnings Growth Analysis
Earnings Trend: ADBE's earnings have grown significantly by 25.5% per year over the past 5 years.
Accelerating Growth: ADBE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ADBE had negative earnings growth (-12.4%) over the past year, making it difficult to compare to the Software industry average (26.8%).
Return on Equity
High ROE: ADBE's Return on Equity (35%) is considered high.
Discover strong past performing companies
How is Adobe's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: ADBE's short term assets ($7.9B) exceed its short term liabilities ($7.4B).
Long Term Liabilities: ADBE's short term assets ($7.9B) exceed its long term liabilities ($5.0B).
Debt to Equity History and Analysis
Debt Level: ADBE has more cash than its total debt.
Reducing Debt: ADBE's debt to equity ratio has increased from 24.2% to 29.5% over the past 5 years.
Debt Coverage: ADBE's debt is well covered by operating cash flow (176.4%).
Interest Coverage: ADBE's interest payments on its debt are well covered by EBIT (64.4x coverage).
Discover healthy companies
What is Adobe current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Future Dividend Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ADBE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ADBE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ADBE's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ADBE's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as ADBE has not reported any payouts.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Shantanu Narayen (58 yo)
Mr. Shantanu Narayen has been Chairman of Adobe Inc. since January 2017 and has been its Chief Executive Officer since December 01, 2007 and served as its President since January 2005 until December 2021....
CEO Compensation Analysis
Compensation vs Market: Shantanu's total compensation ($USD36.13M) is above average for companies of similar size in the US market ($USD13.43M).
Compensation vs Earnings: Shantanu's compensation has been consistent with company performance over the past year.
Experienced Management: ADBE's management team is considered experienced (4.1 years average tenure).
Experienced Board: ADBE's board of directors are considered experienced (7.2 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Adobe Inc.'s employee growth, exchange listings and data sources
- Name: Adobe Inc.
- Ticker: ADBE
- Exchange: NasdaqGS
- Founded: 1982
- Industry: Application Software
- Sector: Software
- Implied Market Cap: US$172.449b
- Shares outstanding: 468.00m
- Website: https://www.adobe.com
Number of Employees
- Adobe Inc.
- 345 Park Avenue
- San Jose
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/07/03 00:00|
|End of Day Share Price||2022/07/01 00:00|
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.