Adobe Inc.

Technology
Computer Software: Prepackaged Software
www.adobe.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $195.95B
PE 35
Debt $7.15B
Cash $7.61B
EV $195.48B
FCF $7.87B

Earnings

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Sales & Net Margins

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Earnings	$5.56B
EBIT	$6.93B
ROE	39%
ROA	23%
FCF	$7.87B
Equity	$14.11B
Growth Stability	100%
PE	35.24
PEG	6.7
PB	13.89
P/FCF	24.89
P/S	9.11
Price/Cash	0.04
Debt/Equity	0.51
Debt/FCF	0.91
Net Margins	26%
Gross Margins	89%
Op. Margins	32%
Earnings CAGR	23%
Sales Growth YoY	11%
Sales Growth QoQ	4%
Sales CAGR	18%
FCF CAGR	20%
Equity CAGR	11%
Earnings Stability	0.84
Earnings Growth YoY	13%
Earnings Growth QoQ	-0%

Earnings CAGR 5Y	5%
Sales CAGR 5Y	14%
FCF CAGR 5Y	9%
Equity CAGR 5Y	6%
Earnings CAGR 3Y	11%
Sales CAGR 3Y	11%
FCF CAGR 3Y	-1%
Equity CAGR 3Y	3%
Market Cap	$195.95B
Revenue	$21.51B
Assets	$30.23B
Total Debt	$7.15B
Cash	$7.61B
Shares Outstanding	441M
EV	195.48B
Earnings Score	94%
Moat Score	97%
Safety Score	95%
Final Score	96%
Working Capital	711M
Current Ratio	1.07
Gross Profit	$19.15B
Shares Growth 3y	-2%
Equity Growth QoQ	-3%
Equity Growth YoY	-15%

Assets & ROA

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Stockholders Equity & ROE

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Adobe Inc., together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform. Its flagship product is Creative Cloud, a subscription service that allows members to access its creative products. This segment serves content creators, students, workers, marketers, educators, enthusiasts, communicators, and consumers. The Digital Experience segment provides an integrated platform and set of applications and services that enable brands and businesses to create, manage, execute, measure, monetize, and optimize customer experiences from analytics to commerce.

SEC Filings

Direct access to Adobe Inc. (ADBE) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Nov 29
- 10-Q Aug 30
- 10-Q May 31
- 10-Q Mar 01
2023
- 10-K Dec 01
- 10-Q Sep 01
- 10-Q Jun 02
- 10-Q Mar 03
2022
- 10-K Dec 02
- 10-Q Sep 02
- 10-Q Jun 03
- 10-Q Mar 04

Sector Comparison

How does Adobe Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Adobe Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 23%

Stability 84%

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Adobe Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Adobe Inc..

Years

Calculation mode

= $310B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$7.9B	$9.4B	$11B	$13B	$16B	$19B	$23B	$28B	$33B	$39B	$47B	$471B
DCF		$8.6B	$9.3B	$10B	$11B	$12B	$13B	$14B	$15B	$17B	$18B	$182B
Value	$310B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	11/2015	12/2016	11/2017	11/2018	11/2019	11/2020	12/2021	12/2022	11/2023	11/2024	TTM
Net Margins	13%	20%	23%	29%	26%	41%	31%	27%	28%	26%	26%
ROA	-	12%	15%	15%	16%	18%	21%	22%	23%	23%	23%
ROE	-	16%	20%	28%	28%	40%	33%	34%	33%	39%	39%

Good Net Margins (25.85%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	11/2015	12/2016	11/2017	11/2018	11/2019	11/2020	12/2021	12/2022	11/2023	11/2024	TTM
Debt over FCF	-	0.95	0.69	1.1	1.81	0.78	0.6	0.63	0.53	0.91	0.91
Debt over Equity	0.27	0.26	0.22	0.44	0.69	0.31	0.28	0.33	0.22	0.51	0.51
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Good Debt/FCF ratio (0.91)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.51)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	11/2015	12/2016	11/2017	11/2018	11/2019	11/2020	12/2021	12/2022	11/2023	11/2024	CAGR 5Y
Revenue YoY growth	-	22%	25%	24%	24%	15%	23%	12%	10%	11%	14%
Earnings YoY growth	-	86%	45%	53%	14%	78%	-8%	-1%	14%	2%	5%
Equity YoY growth	-	6%	14%	11%	12%	26%	12%	-5%	18%	-15%	6%
FCF YoY growth	-	55%	37%	38%	7%	32%	30%	7%	-6%	13%	9%