ADBE Stock Overview
Adobe Inc. operates as a diversified software company worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$500.81|
|52 Week High||US$699.54|
|52 Week Low||US$420.78|
|1 Month Change||-13.31%|
|3 Month Change||-21.66%|
|1 Year Change||8.87%|
|3 Year Change||106.38%|
|5 Year Change||341.79%|
|Change since IPO||39,470.17%|
Recent News & Updates
When Should You Buy Adobe Inc. (NASDAQ:ADBE)?
Adobe Inc. ( NASDAQ:ADBE ) saw significant share price movement during recent months on the NASDAQGS, rising to highs...
Why Adobe Is A Must Own In The Tech Sector
Adobe is a best-of-breed SaaS company, with a 35-year history of alpha generation and a Rule of 40 score in the top 5% of all SaaS companies. Unlike the mega-cap tech companies, its multiples haven't expanded very much recently, and it's now cheaper than Microsoft on a price to free cash flow basis. Slowing growth will always be a risk and that could have triggered the recent selloff, but an insider buy at the current price is comforting.
Free Cash Flow Giant Adobe Is A Large Cap Growth Stock That Can Get Larger
Adobe is a stellar enterprise with tremendous cash flow generating abilities and a pristine balance sheet. The high end of our fair value estimate range for Adobe, derived through our discounted free cash flow process, sits at $691 per share. It's trading at ~$515 per share. Adobe's subscription revenues represent over 90% of its total sales. Recurring revenue streams provide for stronger cash flow profiles given the highly visible nature of those future sales. Shares of ADBE have faced meaningful selling pressure of late in the wake of rising interest rates, but its longer term growth story remains very much intact. Adobe is a large cap growth stock that can get larger, in our view.
|ADBE||US Software||US Market|
Return vs Industry: ADBE exceeded the US Software industry which returned 3.4% over the past year.
Return vs Market: ADBE exceeded the US Market which returned 3.3% over the past year.
|ADBE Average Weekly Movement||6.2%|
|Software Industry Average Movement||8.7%|
|Market Average Movement||6.7%|
|10% most volatile stocks in US Market||15.4%|
|10% least volatile stocks in US Market||2.4%|
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$1.87b|
Last Reported Earnings
Dec 03, 2021
Next Earnings Date
Mar 22, 2022
|Earnings per share (EPS)||10.22|
|Net Profit Margin||30.55%|
How did ADBE perform over the long term?See historical performance and comparison
Is Adobe undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ADBE ($500.81) is trading below our estimate of fair value ($955.36)
Significantly Below Fair Value: ADBE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ADBE is poor value based on its PE Ratio (49x) compared to the US Software industry average (39.8x).
PE vs Market: ADBE is poor value based on its PE Ratio (49x) compared to the US market (16.4x).
Price to Earnings Growth Ratio
PEG Ratio: ADBE is poor value based on its PEG Ratio (4.1x)
Price to Book Ratio
PB vs Industry: ADBE is overvalued based on its PB Ratio (16x) compared to the US Software industry average (4.6x).
How is Adobe forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ADBE's forecast earnings growth (12.1% per year) is above the savings rate (2%).
Earnings vs Market: ADBE's earnings (12.1% per year) are forecast to grow slower than the US market (12.9% per year).
High Growth Earnings: ADBE's earnings are forecast to grow, but not significantly.
Revenue vs Market: ADBE's revenue (12.5% per year) is forecast to grow faster than the US market (9.1% per year).
High Growth Revenue: ADBE's revenue (12.5% 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 (41.6%).
How has Adobe performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ADBE has high quality earnings.
Growing Profit Margin: ADBE's current net profit margins (30.5%) are lower than last year (40.9%).
Past Earnings Growth Analysis
Earnings Trend: ADBE's earnings have grown significantly by 30% 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 (-8.7%) over the past year, making it difficult to compare to the Software industry average (17%).
Return on Equity
High ROE: ADBE's Return on Equity (32.6%) is considered high.
How is Adobe's financial position?
Financial Position Analysis
Short Term Liabilities: ADBE's short term assets ($8.7B) exceed its short term liabilities ($6.9B).
Long Term Liabilities: ADBE's short term assets ($8.7B) exceed its long term liabilities ($5.5B).
Debt to Equity History and Analysis
Debt Level: ADBE has more cash than its total debt.
Reducing Debt: ADBE's debt to equity ratio has increased from 25.1% to 27.9% over the past 5 years.
Debt Coverage: ADBE's debt is well covered by operating cash flow (175.4%).
Interest Coverage: ADBE's interest payments on its debt are well covered by EBIT (60.4x coverage).
What is Adobe current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ADBE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ADBE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ADBE's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ADBE's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ADBE's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Shantanu Narayen (57 yo)
Mr. Shantanu Narayen has been Chairman of Adobe Inc. (formerly known as Adobe Systems Incorporated) since January 2017 and has been its Chief Executive Officer since December 01, 2007 and served as its Pre...
CEO Compensation Analysis
Compensation vs Market: Shantanu's total compensation ($USD45.89M) is above average for companies of similar size in the US market ($USD11.47M).
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 (9.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ADBE insiders have sold more shares than they have bought 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$236.232b
- Shares outstanding: 471.70m
- 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||2022/01/26 23:53|
|End of Day Share Price||2022/01/26 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.