Is Adobe Systems Stock a Good Investment?
Adobe Systems Investment Advice | ADBE |
- Examine Adobe Systems' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Adobe Systems' leadership team and their track record. Good management can help Adobe Systems navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact Adobe Systems' business and its evolving consumer preferences.
- Compare Adobe Systems' performance and market position to its competitors. Analyze how Adobe Systems is positioned in terms of product offerings, innovation, and market share.
- Check if Adobe Systems pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Adobe Systems' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Adobe Systems Incorporated stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Adobe Systems Incorporated is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Adobe Systems Stock
Researching Adobe Systems' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 86.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.7. Adobe Systems recorded earning per share (EPS) of 11.82. The entity last dividend was issued on the 24th of March 2005. The firm had 2:1 split on the 24th of May 2005.
To determine if Adobe Systems is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Adobe Systems' research are outlined below:
| Adobe Systems generated a negative expected return over the last 90 days | |
| Over 86.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from finance.yahoo.com: Autodesk Tops Q3 Earnings and Revenue Estimates |
Adobe Systems Quarterly Liabilities And Stockholders Equity |
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Adobe Systems uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Adobe Systems Incorporated. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Adobe Systems' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 20th of March 2024 Upcoming Quarterly Report | View | |
| 20th of June 2024 Next Financial Report | View | |
| 29th of February 2024 Next Fiscal Quarter End | View | |
| 11th of December 2024 Next Fiscal Year End | View | |
| 30th of November 2023 Last Quarter Report | View | |
| 30th of November 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Adobe Systems' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Adobe Systems' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2002-09-12 | 2002-08-31 | 0.1 | 0.11 | 0.01 | 10 | ||
2002-03-14 | 2002-02-28 | 0.1 | 0.11 | 0.01 | 10 | ||
1999-09-16 | 1999-08-31 | 0.09 | 0.1 | 0.01 | 11 | ||
1999-06-17 | 1999-05-31 | 0.08 | 0.09 | 0.01 | 12 | ||
1998-09-10 | 1998-08-31 | 0.04 | 0.05 | 0.01 | 25 | ||
1997-09-19 | 1997-08-31 | 0.06 | 0.07 | 0.01 | 16 | ||
2003-09-10 | 2003-08-31 | 0.12 | 0.14 | 0.02 | 16 | ||
2003-03-13 | 2003-02-28 | 0.11 | 0.13 | 0.02 | 18 |
Know Adobe Systems' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Adobe Systems is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Adobe Systems Incorporated backward and forwards among themselves. Adobe Systems' institutional investor refers to the entity that pools money to purchase Adobe Systems' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 4.7 M | Northern Trust Corp | 2024-09-30 | 4.6 M | Bank Of America Corp | 2024-06-30 | 4.6 M | Amundi | 2024-06-30 | 4.3 M | Amvescap Plc. | 2024-06-30 | 4.2 M | Alliancebernstein L.p. | 2024-06-30 | 4.1 M | Legal & General Group Plc | 2024-06-30 | 4.1 M | Goldman Sachs Group Inc | 2024-06-30 | 3.4 M | Edgewood Management Llc | 2024-09-30 | 3.4 M | Vanguard Group Inc | 2024-09-30 | 41 M | Blackrock Inc | 2024-06-30 | 38.6 M |
Adobe Systems' market capitalization trends
The company currently falls under 'Mega-Cap' category with a current market capitalization of 231.24 B.Market Cap |
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Adobe Systems' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.42 | 0.44 | |
| Return On Capital Employed | 0.20 | 0.34 | |
| Return On Assets | 0.14 | 0.18 | |
| Return On Equity | 0.28 | 0.28 |
Determining Adobe Systems' profitability involves analyzing its financial statements and using various financial metrics to determine if Adobe Systems is a good buy. For example, gross profit margin measures Adobe Systems' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Adobe Systems' profitability and make more informed investment decisions.
Adobe Systems' Earnings Breakdown by Geography
Please note, the presentation of Adobe Systems' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Adobe Systems' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Adobe Systems' management manipulating its earnings.
Evaluate Adobe Systems' management efficiency
Adobe Systems has return on total asset (ROA) of 0.1597 % which means that it generated a profit of $0.1597 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.3536 %, meaning that it created $0.3536 on every $100 dollars invested by stockholders. Adobe Systems' management efficiency ratios could be used to measure how well Adobe Systems manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.44. The current year's Return On Capital Employed is expected to grow to 0.34. At present, Adobe Systems' Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Non Currrent Assets Other is expected to grow to about 1.5 B, whereas Intangible Assets are forecasted to decline to about 667.4 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 19.08 | 20.04 | |
| Tangible Book Value Per Share | (6.70) | (6.37) | |
| Enterprise Value Over EBITDA | 38.88 | 40.82 | |
| Price Book Value Ratio | 13.15 | 6.71 | |
| Enterprise Value Multiple | 38.88 | 40.82 | |
| Price Fair Value | 13.15 | 6.71 | |
| Enterprise Value | 6.7 B | 7 B |
Adobe Systems' management has consistently demonstrated strong leadership, driving both financial growth and operational excellence. By analyzing current market trends and future growth opportunities, we assess the stock's true value and potential for investors.
Beta 1.299 |
Basic technical analysis of Adobe Stock
As of the 28th of November, Adobe Systems shows the Standard Deviation of 1.94, mean deviation of 1.35, and Risk Adjusted Performance of (0.02). Adobe Systems technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Adobe Systems treynor ratio, as well as the relationship between the value at risk and skewness to decide if Adobe Systems is priced correctly, providing market reflects its regular price of 513.68 per share. Given that Adobe Systems has information ratio of (0.11), we suggest you to validate Adobe Systems Incorporated's prevailing market performance to make sure the company can sustain itself at a future point.Adobe Systems' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Adobe Systems insiders, such as employees or executives, is commonly permitted as long as it does not rely on Adobe Systems' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Adobe Systems insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Daniel Durn over three months ago Disposition of 3837 shares by Daniel Durn of Adobe Systems subject to Rule 16b-3 | ||
John Warnock over a year ago Adobe Systems exotic insider transaction detected |
Adobe Systems' Outstanding Corporate Bonds
Adobe Systems issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Adobe Systems uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Adobe bonds can be classified according to their maturity, which is the date when Adobe Systems Incorporated has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| ADOBE SYS INC Corp BondUS00724FAC59 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Adobe 19 percent Corp BondUS00724PAB58 | View | |
| Adobe 23 percent Corp BondUS00724PAD15 | View | |
| Adobe 215 percent Corp BondUS00724PAC32 | View |
Understand Adobe Systems' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Adobe Systems' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.02) | |||
| Market Risk Adjusted Performance | (0.09) | |||
| Mean Deviation | 1.35 | |||
| Coefficient Of Variation | (2,529) | |||
| Standard Deviation | 1.94 | |||
| Variance | 3.75 | |||
| Information Ratio | (0.11) | |||
| Jensen Alpha | (0.19) | |||
| Total Risk Alpha | (0.39) | |||
| Treynor Ratio | (0.10) | |||
| Maximum Drawdown | 10.09 | |||
| Value At Risk | (2.89) | |||
| Potential Upside | 2.87 | |||
| Skewness | (1.23) | |||
| Kurtosis | 5.12 |
| Risk Adjusted Performance | (0.02) | |||
| Market Risk Adjusted Performance | (0.09) | |||
| Mean Deviation | 1.35 | |||
| Coefficient Of Variation | (2,529) | |||
| Standard Deviation | 1.94 | |||
| Variance | 3.75 | |||
| Information Ratio | (0.11) | |||
| Jensen Alpha | (0.19) | |||
| Total Risk Alpha | (0.39) | |||
| Treynor Ratio | (0.10) | |||
| Maximum Drawdown | 10.09 | |||
| Value At Risk | (2.89) | |||
| Potential Upside | 2.87 | |||
| Skewness | (1.23) | |||
| Kurtosis | 5.12 |
Consider Adobe Systems' intraday indicators
Adobe Systems intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Adobe Systems stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 0.023 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 519.72 | |||
| Day Typical Price | 517.71 | |||
| Market Facilitation Index | 12.08 | |||
| Price Action Indicator | (6.04) | |||
| Relative Strength Index | 64.86 |
Adobe Systems Corporate Filings
F4 | 19th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 25th of September 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 12th of September 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F3 | 12th of August 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
Adobe Stock media impact
Far too much social signal, news, headlines, and media speculation about Adobe Systems that are available to investors today. That information is available publicly through Adobe media outlets and privately through word of mouth or via Adobe internal channels. However, regardless of the origin, that massive amount of Adobe data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Adobe Systems news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Adobe Systems relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Adobe Systems' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Adobe Systems alpha.
Adobe Systems Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Adobe Systems can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Adobe Systems Historical Investor Sentiment
Investor biases related to Adobe Systems' public news can be used to forecast risks associated with an investment in Adobe. The trend in average sentiment can be used to explain how an investor holding Adobe can time the market purely based on public headlines and social activities around Adobe Systems Incorporated. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Adobe Systems' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Adobe Systems and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Adobe Systems news discussions. The higher the estimate score, the more favorable the investor's outlook on Adobe Systems.
Adobe Systems Corporate Management
| Dana JD | General VP | Profile | |
| Simon Dale | VP Korea | Profile | |
| Shanmugh Natarajan | MD Products | Profile | |
| Tony Ng | Adobe China | Profile |
Already Invested in Adobe Systems Incorporated?
The danger of trading Adobe Systems Incorporated is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Adobe Systems is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Adobe Systems. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Adobe Systems is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Adobe Systems is a strong investment it is important to analyze Adobe Systems' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Adobe Systems' future performance. For an informed investment choice regarding Adobe Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Adobe Systems Incorporated. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Adobe Systems. If investors know Adobe will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Adobe Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.233 | Earnings Share 11.82 | Revenue Per Share 46.482 | Quarterly Revenue Growth 0.106 | Return On Assets 0.1597 |
The market value of Adobe Systems is measured differently than its book value, which is the value of Adobe that is recorded on the company's balance sheet. Investors also form their own opinion of Adobe Systems' value that differs from its market value or its book value, called intrinsic value, which is Adobe Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Adobe Systems' market value can be influenced by many factors that don't directly affect Adobe Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Adobe Systems' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Adobe Systems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Adobe Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.