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Fundamental analysis: Adobe Inc. (ADBE)

Awarener score: 7.1

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 8.5

• Business has been growing at a good pace. It's been encouraging in relation to peer companies.
• Adobe Inc. business trend is extremely stable, which is best. It looks well ranked against rivals.

Margins score: 9.5

• ADBE profit margins -on goods and services sold- are usually huge. They stand top-notch against rival companies.
• Business profit on sales tends to be huge. It's top tier when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain impressive in relation to peers.
• Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still top-notch against similar companies.
• Profits -before income taxes- are usually excellent considering total sales, and remain top tier when measured against rivals.
• Total net profit tends to be huge when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 6.3

• Adobe Inc. profit -on goods and services sold- has been growing at a normal pace. It's been a slight improvement compared to competitors.
• In recent years, earnings -on operations- have been growing at a normal step, which has been slightly better than comparable firms.
• Profits -available to repay debt and purchase properties- have been growing at a good pace, which compares encouraging in relation to peer enterprises.
• Earnings -before income taxes and interests on loans taken- have been growing at a good tempo. It turns to be close to average when compared to similar stocks.
• In past years, profits -before income taxes- grew at a normal speed. It was slightly better than rivals.
• In the previous years, growth on total net profit has been average, and encouraging in relation to peer companies.
• Earnings per share have grown at a normal rhythm in past years. It's been in good shape compared to industry peers.

Miscellaneous score: 7.0

• ADBE managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been well ranked against peers.
• Research and development expenses consume a moderate portion of revenues. It's encouraging in relation to competitors.
• The company grows modestly in relation to research and development efforts. It stands a slight improvement compared to rival companies.

Profitability score: 10.0

• Adobe Inc. usually gets huge returns on the resources it controls. It proves top tier when measured against peer firms.
• The company normally gets huge proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
• Profitability -in relation to owned resources- is usually paramount. It ranks top tier when measured against competitors.
• In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 5.7

• ADBE usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands top tier when measured against rival firms.
• The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is almost average when measured against industry peers.
• In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
• The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
• As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
• The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains excellent in relation to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in good shape compared to rivals.
• The company uses a significant portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks almost average when measured against competitors.

Balance Sheet score: 6.4

• Adobe Inc. intangible assets (like brands and goodwill) represent a significant portion of resources controlled, according to accounting books. There could be significant difficulties in liquidating them if the company ever gets in financial distress. It happens to be weak when measured against peer companies.
• The company has somewhat more short-term resources than short-term obligations. Liquidity concerns might not be that important. It turns to be in a weak position compared to similar firms.
• Roughly a tenth of resources controlled were provided for with financial debt. Creditors have minor claims on the company, and financial position is safe. It remains somewhat better than rival firms.
• Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks weak when measured against rivals.
• For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's lacking compared to peer firms.
• For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is slightly worse than similar enterprises.
• Usually, sales are on a month credit. It still ranks more than average in relation to peers.
• Normally has no inventories. It comes up as impressive in relation to competitors.
• On average, it takes approximately two months from the purchase to charging customers. It happens to be well ranked against peers.
• On average pays suppliers two months after the purchase. It ranks encouraging in relation to industry peers.
• The company charges its customers before it must pay its suppliers, so the more it sales, the more free funds it gets. It's in good shape compared to similar companies.
• Net interest expenses consume a non-significant portion of usual business earnings, and are therefore extremely easily to bear. It stands well ranked against rival firms.
• Business earnings have usually been excellent when measured against loans taken. It could take less than two years to repay the obligations with current profitability. It ranks more than average in relation to comparable enterprises.
• Revenues are quite good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks close to average when compared to similar firms.
• Resource exploitation is quite good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 4.8

• Adobe Inc. looks very expensive in relation to profits and financial position. It happens to be almost average when measured against competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a very weak position compared to peers.
• In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands well ranked against similar companies.
• The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still more than average in relation to industry firms.
• In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up in good shape compared to peer ventures.
• The company has more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks slightly better than similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks almost average when measured against peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a very large relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks in a very weak position compared to rival firms.
• The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
• In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be more than average in relation to industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still in good shape compared to peer companies.

Total score: 7.3

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Awarener score: 7.1

Conclusion

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