Adobe Systems Stock Analysis (NASDAQ:ADBE)

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$149.94 $1.02 (0.68%) ADBE stock closing price Jul 20, 2017 (Closing)
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Adobe Systems
Updated on : Jul 20, 2017
previous close
ADBE 149.9 (0%)
NASDAQ 6390 (0%)
Closing Price On: Jul 20, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
27.8%
Sector Average:
6%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
-$85.6M
Net Income:
$374.4M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
ROIC
ROE
Cash Flow
FCF Margin
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ADBE PS :
11.4
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
29.3%
Return on Equity:
19.3%
Free Cash Flow Margin:
-6.2%
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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 (3.4/5)

Our Adobe Systems stock opinion is based on fundamentals of the company. This Adobe Systems stock analysis is based on latest Q2 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 26.7% in 2017 Q2.
  • The TTM operating margin was good at 27.8% for Adobe Systems.
  • Net margins stood at a healthy 22.1% (average) for Adobe Systems in the Trailing Twelve Months.
  • Adobe Systems's return on invested capital of 29.3% is good.
  • The LTM ROE of 19.3% for Adobe Systems is attractive.

Should you sell ADBE stock?

  • ADBE stock is trading at a PE ratio of 49.6, which is worse than the industry average multiple of 26.6.
  • The company is trading at a price to sales multiple of 11.4, which is higher in comparison to the Computer-Software industry average of 2.8, making ADBE stock expensive.
  • The company has a negative free cash flow margin of -6.2%.

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