Adobe, Inc. (ADBE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Intuit, Inc.

Adobe, Inc.

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VMware, Inc.

Why is Adobe, Inc. ?

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 12.29% and Operating profit at 13.45%
The company is Net-Debt Free

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 10,481 MM
ROCE(HY) Highest at 62.95%
NET SALES(Q) Highest at USD 6,618 MM

With ROE of 63.05%, it has a attractive valuation with a 11.42 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 -48.29%, its profits have risen by 5.7% ; the PEG ratio of the company is 1.5

High Institutional Holdings at 97.53%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 10.28% over the previous quarter.

Real-Time Research Report

Verdict Report

How 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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Adobe, Inc.

-48.06%

-1.62

35.61%

S&P 500

22.24%

1.91

13.23%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.29%

EBIT Growth (5y)

13.45%

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)

1.15

Tax Ratio

17.40%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

87.25%

ROCE (avg)

53.28%

ROE (avg)

41.40%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

11.42

EV to EBIT

14.51

EV to EBITDA

13.36

EV to Capital Employed

11.98

EV to Sales

5.32

PEG Ratio

1.49

Dividend Yield

ROCE (Latest)

82.55%

ROE (Latest)

63.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 10,481 MM

ROCE(HY)

Highest at 62.95%

NET SALES(Q)

Highest at USD 6,618 MM

RAW MATERIAL COST(Y)

Fallen by -0.23% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 13.52 times

-2What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 12.49 %

OPERATING PROFIT MARGIN(Q)

Lowest at 38.32 %

Here's what is working for Adobe, Inc.

Operating Cash Flow

Highest at USD 10,481 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 6,618 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Debtors Turnover Ratio

Highest at 13.52 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.23% (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.

Operating Profit Margin

Lowest at 38.32 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 12.49 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio