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 (3.7/5)
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.