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Adobe Inc ADBE

Morningstar Rating
$570.93 +10.65 (1.90%)
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Company Report

Adobe Dominates the Creative Landscape and Enjoys a Wide Moat

Adobe has come to dominate in content creation software with its iconic Photoshop and Illustrator solutions, both now part of the broader Creative Cloud. The company has added new products and features to the suite through organic development and bolt-on acquisitions to drive the most comprehensive portfolio of tools used in print, digital, and video content creation. The December 2021 launch of Adobe Express helps further broaden the company’s funnel, as it incorporates popular features of the full Creative Cloud but comes in lower cost and free versions. The 2023 introduction of Firefly marks an important artificial intelligence solution that should also attract new users. We think Adobe is properly focusing on bringing new users under its umbrella and believe that converting these users will become more important over time.

Price vs Fair Value

ADBE is trading at a 6% discount.
Price
$570.93
Fair Value
$122.00
Uncertainty
High
1-Star Price
$375.10
5-Star Price
$844.00
Economic Moat
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Capital Allocation
Hklnykmr

Bulls Say, Bears Say

Bulls

Adobe is the de facto standard in content creation software and PDF file editing, categories the company created and still dominates.

Bears

Momentum is slowing in Creative Cloud after elevated growth driven largely by the model transition to SaaS.

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News

Trading Information

Previous Close Price
$560.28
Day Range
$560.67572.89
52-Week Range
$321.56634.59
Bid/Ask
$570.60 / $571.00
Market Cap
$258.06 Bil
Volume/Avg
3.0 Mil / 3.3 Mil

Key Statistics

Price/Earnings (Normalized)
35.53
Price/Sales
13.50
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
1.58%

Company Profile

Adobe provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuring, optimizing and engaging with compelling content multiple operating systems, devices and media. The company operates with three segments: digital media content creation, digital experience for marketing solutions, and publishing for legacy products (less than 5% of revenue).
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Large Growth
Total Number of Employees
29,945

Competitors

Valuation

Metric
ADBE
CRM
MSFT
Price/Earnings (Normalized)
35.5340.3637.57
Price/Book Value
15.745.1412.96
Price/Sales
13.508.9513.63
Price/Cash Flow
34.2223.8329.70
Price/Earnings
ADBE
CRM
MSFT

Financial Strength

Metric
ADBE
CRM
MSFT
Quick Ratio
1.220.861.02
Current Ratio
1.341.041.22
Interest Coverage
58.7913.0941.49
Quick Ratio
ADBE
CRM
MSFT

Profitability

Metric
ADBE
CRM
MSFT
Return on Assets (Normalized)
26.25%8.01%19.91%
Return on Equity (Normalized)
48.93%12.86%39.57%
Return on Invested Capital (Normalized)
37.60%10.76%29.21%
Return on Assets
ADBE
CRM
MSFT
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