Adobe Systems Stock Analysis (NASDAQ:ADBE)

Add to My Stocks
$119.67 $0.74 (0.62%) ADBE stock closing price Feb 17, 2017 (Closing)
Watch Robo Advisor Video of ADBE Stock Analysis
Adobe Systems
Updated on : Feb 17, 2017
previous close
ADBE 119.7 (0%)
NASDAQ 5838.6 (0%)
Closing Price On: Feb 17, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q4
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
25.5%
Sector Average:
4.3%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
1.9B
Debt/Equity Ratio:
 0.26
Compared to the industry
Cash Flow
Operating cash flow:
$695.6M
Net Income:
$399.6M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
High Debt Burden
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ADBE PS :
10.1
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
23.6%
Return on Equity:
16.2%
Free Cash Flow Margin:
40.2%
Double Tap To Exit Full Screen
0:00
/

Adobe Systems Analysis Video

1164 5 2

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 Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy ADBE stock?

  • The Year Over Year (YoY) revenue growth for Adobe Systems was 23.1% in 2016 Q4.
  • Adobe Systems had a healthy average operating margin of 25.5% over the last 4 quarters.
  • LTM Net margins were good at 20% for Adobe Systems.
  • The company has an operating cash flow which is 1.7 times the net income. We see this as a positive signal.
  • Adobe Systems generates a high return on invested capital of 23.6%.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Adobe Systems at 16.2%.
  • Adobe Systems has a healthy FCF (Free Cash Flow) margin of 40.2%.

Should you sell ADBE stock?

  • Adobe Systems has a debt/equity ratio of  0.26, which is worse than the average in the Computer and Technology sector.
  • The ADBE stock currently trades at a PE of 47.9, which is expensive, compared to the industry average of 25.5.
  • The company is trading at a price to sales multiple of 10.1, which is overvalued in comparison to the Computer-Software industry average multiple of 2.6.

Comments on this video and Adobe Systems stock