ScoreWhy is Adobe, Inc. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 41.40%
- Healthy long term growth as Net Sales has grown by an annual rate of 13.48% and Operating profit at 17.27%
- Company has a low Debt to Equity ratio (avg) at times
2
Flat results in Aug 25
- INTEREST(HY) At USD 135 MM has Grown at 46.74%
- DEBT-EQUITY RATIO (HY) Highest at 5.91 %
3
With ROE of 52.06%, it has a attractive valuation with a 18.41 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -21.11%, its profits have risen by 25.3% ; the PEG ratio of the company is 1.2
4
Below par performance in long term as well as near term
- Along with generating -21.11% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Adobe, Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Adobe, Inc. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Adobe, Inc.
-100.0%
-0.75
31.03%
S&P 500
18.55%
0.81
19.85%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.48%
EBIT Growth (5y)
17.27%
EBIT to Interest (avg)
49.50
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0.05
Sales to Capital Employed (avg)
1.05
Tax Ratio
17.40%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
85.00%
ROCE (avg)
53.28%
ROE (avg)
41.40%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
35
Industry P/E
Price to Book Value
18.41
EV to EBIT
29.70
EV to EBITDA
26.66
EV to Capital Employed
20.17
EV to Sales
10.88
PEG Ratio
1.18
Dividend Yield
NA
ROCE (Latest)
67.92%
ROE (Latest)
52.06%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
ROCE(HY)
Highest at 52.87%
NET SALES(Q)
Highest at USD 5,988 MM
RAW MATERIAL COST(Y)
Fallen by 0.36% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 11.9 times
OPERATING PROFIT(Q)
Highest at USD 2,381 MM
PRE-TAX PROFIT(Q)
Highest at USD 2,187 MM
EPS(Q)
Highest at USD 4.18
-7What is not working for the Company
INTEREST(HY)
At USD 135 MM has Grown at 46.74%
DEBT-EQUITY RATIO
(HY)
Highest at 5.91 %
Here's what is working for Adobe, Inc.
Net Sales
Highest at USD 5,988 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Operating Profit
Highest at USD 2,381 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 2,187 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
EPS
Highest at USD 4.18
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Highest at 11.9 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by 0.36% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Adobe, Inc.
Interest
At USD 135 MM has Grown at 46.74%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 5.91 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
