Adobe Systems Stock Analysis (NASDAQ:ADBE)

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$131.52 $0.1 (0.08%) ADBE stock closing price Apr 21, 2017 (Closing)
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Adobe Systems
Updated on : Apr 21, 2017
previous close
ADBE 131.5 (0%)
NASDAQ 5910.5 (0%)
Closing Price On: Apr 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q1
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
26.9%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$730.4M
Net Income:
$398.5M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ADBE PS :
10.6
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
26.5%
Return on Equity:
17.9%
Free Cash Flow Margin:
41.6%
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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 Q1 earnings for 2017. 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 21.6% in 2017 Q1.
  • The TTM operating margin was good at 26.9% for Adobe Systems.
  • Net margins stood at a healthy 21.3% (average) for Adobe Systems in the Trailing Twelve Months.
  • The operating cash flow looks good at 1.8 times the net income.
  • Adobe Systems has an attractive ROIC (Return on Invested Capital) of 26.5%
  • Adobe Systems has a good Return On Equity (ROE) of 17.9%.
  • The company has a healthy free cash flow margin of 41.6%.

Should you sell ADBE stock?

  • ADBE stock is trading at a PE ratio of 47.7, which is worse than the industry average multiple of 25.6.
  • ADBE stock is trading at a PS multiple of 10.6, which is a negative when compared to the Computer-Software industry average multiple of 2.6.

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