Adobe Systems Stock Analysis (NASDAQ:ADBE)
Adobe Systems Analysis Video
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%.