Adobe Systems Stock Analysis (NASDAQ:ADBE)

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$110.97 $0.26 (0.23%) ADBE stock closing price Jan 23, 2017 (Closing)
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Adobe Systems
Updated on : Jan 23, 2017
previous close
ADBE 111 (0%)
NASDAQ 5552.9 (0%)
Closing Price On: Jan 23, 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:
4.8%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
PROS      CONS
Recent Growth
Operating Margins
Net Margins
ROIC
ROE
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ADBE PS :
9.4
Industry PS :
2.4
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
23.6%
Return on Equity:
16.2%
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Adobe Systems Analysis Video

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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.
  • The TTM operating margin was good at 25.5% for Adobe Systems.
  • Net margins stood at a healthy 20% (average) for Adobe Systems in the Trailing Twelve Months.
  • Adobe Systems's return on invested capital of 23.6% is good.
  • The LTM ROE of 16.2% for Adobe Systems is attractive.

Should you sell ADBE stock?

  • The ADBE stock currently trades at a PE of 44.4, which is expensive, compared to the industry average of 25.3.
  • The company is trading at a price to sales multiple of 9.4, which is overvalued in comparison to the Computer-Software industry average multiple of 2.4.

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