Adobe Systems Stock Analysis, Valuation (NASDAQ:ADBE)

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$202.09 $0.89 (0.44%) ADBE stock closing price Feb 21, 2018 (Closing)
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Adobe Systems
Updated on : Feb 21, 2018
previous close
ADBE 202.1 (0%)
NASDAQ 7218.2 (0%)
Closing Price On: Feb 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
29.7%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$833.2M
Net Income:
$501.6M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ADBE PS :
13.6
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
34.7%
Return on Equity:
21.5%
Free Cash Flow Margin:
39.6%
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Adobe Systems Stock Analysis

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Investors can watch the Amigobulls Adobe Systems stock analysis video here. Our ADBE analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Adobe Systems Incorporated Stock Rating 3.7/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for ADBE stock analysis. We also use relative valuation metrics like PE ratio and price to sales ratio for Adobe Systems valuation analysis. Adobe Systems stock rating is our opinion about the business fundamentals of the company.

Should you buy ADBE stock?

  • Adobe Systems's revenue growth came in at 24.8% in 2017 Q4.
  • Adobe Systems had a healthy average operating margin of 29.7% over the last 4 quarters.
  • LTM Net margins were good at 23.2% for Adobe Systems.
  • The company has an operating cash flow which is 1.7 times the net income.
  • Adobe Systems's return on invested capital of 34.7% is good.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Adobe Systems at 21.5%.
  • The company has a healthy free cash flow margin of 39.6%.

Should you sell ADBE stock?

  • Trading at a PE ratio of 57.1, ADBE stock is overvalued in comparison to industry average multiple of 25.3.
  • The company is trading at a price to sales multiple of 13.6, which is overvalued in comparison to the Computer-Software industry average multiple of 2.8.

Comments on this video and Adobe Systems stock

Investors can use Amigobulls Adobe Systems stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

Adobe Systems revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Adobe Systems stock.