About Adobe Inc.
Adobe Inc. operates as a technology company worldwide. The Digital Media segment offers products and services that enable individuals, teams, and enterprises to create, publish, and promote content. This segment serves photographers, video editors, graphic and experience designers, game developers, content creators, students, marketers, business owners, knowledge workers, and consumers. The Digital Experience segment provides an integrated platform; and products, services, and solutions that enable brands and businesses to create, manage, execute, measure, monetize, and optimize customer experiences from analytics to commerce. This segment serves marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, and executives across the C-suite. The Publishing and Advertising segment offers e-learning, technical document publishing, web conferencing, document and forms platform, web application development, printing, and Adobe Advertising solutions. It also provides consulting, training, customer management, technical support, and learning services. The company offers its solutions to enterprise customers, and businesses and consumers; and licenses its products to end-user customers through app stores and website at adobe.com. It markets and distributes its products through distributors, retailers, software developers, mobile app stores, systems integrators, independent software vendors, value-added resellers, and original equipment and hardware manufacturers. The company also provides an online visibility management and content marketing software-as-a-service platform. The company has a strategic alliance with HUMAIN for the development of generative AI models and AI-powered applications. The company was formerly known as Adobe Systems Incorporated and changed its name to Adobe Inc. in October 2018. Adobe Inc. was founded in 1982 and is headquartered in San Jose, California.
Adobe Inc. (ADBE) is a Technology company in the Software - Application industry with a market capitalisation of $100.3B. The stock trades at 14.08x trailing earnings.
- Sector
- Technology
- Industry
- Software - Application
- Market cap
- $100.3B
- P/E ratio
- 14.08
- Forward P/E
- 9.12
- EPS (TTM)
- $17.91
- Revenue (TTM)
- $25.2B
- Free cash flow
- $9.2B
- Profit margin
- 28.7%
- Beta
- 1.42
- Shares outstanding
- 397.5M
Financial health: Strong8/10
7 strengths, 1 concern. Weakest points: current ratio.
- Debt to equity: 0.53 (Watch, benchmark < 0.5) — Debt of 0.53x equity is moderate against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 0.0y (Strong, benchmark < 4 years) — Holds more cash than debt ($385.0M net cash).
- Current ratio: 1.00 (Concern, benchmark > 1.5) — Short-term assets cover only 1.00x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has been broadly flat over the last 4 years.
- Return on equity: 62.9% (Strong, benchmark > 15%) — Earns 62.9% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 89.4% (Strong, benchmark > 40%) — Keeps 89.4% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 28.7% (Strong, benchmark > 10%) — Turns 28.7% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $9.9B (Strong, benchmark positive) — Generated $9.9B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 12.7% (Strong, benchmark > 10%) — Revenue changed 12.7% year on year, comfortably past the > 10% mark.
- Earnings growth: 7.9% (Watch, benchmark > 10%) — Earnings changed 7.9% year on year, short of the > 10% mark.
- PEG ratio: 0.61 (Strong, benchmark < 1) — At 0.61, the price looks cheap relative to expected growth — Lynch treated 1.0 as fair value.