Adobe Systems Stock Analysis (NASDAQ:ADBE)
Adobe Systems Analysis Video
View Adobe Systems stock analysis video. This is our ADBE analyst opinion covering the buy and sell arguments for ADBE stock.
Adobe Systems Incorporated Stock Rating (3.7/5)
Our Adobe Systems stock opinion is based on fundamentals of the company. This Adobe Systems stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy ADBE stock?
- Adobe Systems's revenue growth came in at 21.6% in 2017 Q1.
- Adobe Systems had a healthy average operating margin of 26.9% over the last 4 quarters.
- LTM Net margins were good at 21.3% for Adobe Systems.
- The company has an operating cash flow which is 1.8 times the net income. We see this as a positive signal.
- Adobe Systems has an attractive ROIC (Return on Invested Capital) of 26.5%
- The LTM ROE of 17.9% for Adobe Systems is attractive.
- The company has a good Free Cash Flow (FCF) margin of 41.6%.
Should you sell ADBE stock?
- Adobe Systems has a debt/equity ratio of 0.25, which is worse than the average in the Computer and Technology sector.
- Trading at a PE ratio of 46.3, ADBE stock is overvalued in comparison to industry average multiple of 25.7.
- The company is trading at a price to sales multiple of 10.3, which is overvalued in comparison to the Computer-Software industry average multiple of 2.6.