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ADBE

AdobeNasdaqGS:ADBE Stock Report

Last Price

US$500.81

Market Cap

US$236.2b

7D

-3.1%

1Y

8.9%

Updated

26 Jan, 2022

Data

Company Financials +
ADBE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance3/6
Financial Health5/6
Dividends0/6

ADBE Stock Overview

Adobe Inc. operates as a diversified software company worldwide.

Adobe Competitors

salesforce.com

NYSE:CRM

US$212.2b

Workday

NasdaqGS:WDAY

US$59.0b

Synopsys

NasdaqGS:SNPS

US$44.8b

Zoom Video Communications

NasdaqGS:ZM

US$43.5b

Price History & Performance

Summary of all time highs, changes and price drops for Adobe
Historical stock prices
Current Share PriceUS$500.81
52 Week HighUS$699.54
52 Week LowUS$420.78
Beta1
1 Month Change-13.31%
3 Month Change-21.66%
1 Year Change8.87%
3 Year Change106.38%
5 Year Change341.79%
Change since IPO39,470.17%

Recent News & Updates

Jan 23
When Should You Buy Adobe Inc. (NASDAQ:ADBE)?

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...

Jan 22

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.

Jan 15

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.

Shareholder Returns

ADBEUS SoftwareUS Market
7D-3.1%-5.1%-5.1%
1Y8.9%3.4%3.3%

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.

Price Volatility

Is ADBE's price volatile compared to industry and market?
ADBE volatility
ADBE Average Weekly Movement6.2%
Software Industry Average Movement8.7%
Market Average Movement6.7%
10% most volatile stocks in US Market15.4%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
198225,988Shantanu Narayenhttps://www.adobe.com

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

How do Adobe's earnings and revenue compare to its market cap?
ADBE fundamental statistics
Market CapUS$236.23b
Earnings (TTM)US$4.82b
Revenue (TTM)US$15.79b

49.0x

P/E Ratio

15.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADBE income statement (TTM)
RevenueUS$15.79b
Cost of RevenueUS$1.87b
Gross ProfitUS$13.92b
ExpensesUS$9.10b
EarningsUS$4.82b

Last Reported Earnings

Dec 03, 2021

Next Earnings Date

Mar 22, 2022

Earnings per share (EPS)10.22
Gross Margin88.18%
Net Profit Margin30.55%
Debt/Equity Ratio27.9%

How did ADBE perform over the long term?

See historical performance and comparison

Valuation

Is Adobe undervalued compared to its fair value and its price relative to the market?

47.6%

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).


Future Growth

How is Adobe forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

12.1%

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%).


Past Performance

How has Adobe performed over the past 5 years?

30.0%

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.


Financial Health

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).


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?

4.1yrs

Average management tenure


CEO

Shantanu Narayen (57 yo)

14.08yrs

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 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.


Leadership Team

Experienced Management: ADBE's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: ADBE's board of directors are considered experienced (9.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ADBE insiders have sold more shares than they have bought 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 employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Adobe Inc.
  • 345 Park Avenue
  • San Jose
  • California
  • 95110-2704
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 23:53
End of Day Share Price2022/01/26 00:00
Earnings2021/12/03
Annual Earnings2021/12/03


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.