The share price of Adobe Inc. [NASDAQ: ADBE] inclined by $374.29, presently trading at $374.84. The company’s shares saw 50.48% gains compared to the lowest price in the period of the last 52 weeks, set at $249.10 recorded on 02/13/20. The last few days have been benevolent to the share price as ADBE jumped by +2.01% during the last week, even though the stock is still down by -0.76% compared to 7.38 of all time high it touched on 02/13/20. However, the stock had a strong performance during the past 3 months, roughly gaining 8.77%, while additionally gaining 44.04% during the last 12 months. Adobe Inc. is said to have a 12-month price target set at $352.96. That means that the stock has a strong potential to acquire -21.88% decrease from the current trading price.
Adobe Inc. [NASDAQ:ADBE]: Analyst Rating and Earnings
Its stock price has been found in the range of 249.10 to 374.48. This is compared to its latest closing price of $374.29.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Thu 12 Mar (In 28 Days).
Fundamental Analysis of Adobe Inc. [ADBE]
Now let’s turn to look at profitability: with a current Operating Margin for Adobe Inc. [ADBE] sitting at +29.00 and its Gross Margin at +83.40, this company’s Net Margin is now 26.40%. These measurements indicate that Adobe Inc. [ADBE] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 22.93, and its Return on Invested Capital has reached 20.60%. Its Return on Equity is 29.67, and its Return on Assets is 14.58. These metrics all suggest that Adobe Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Adobe Inc. [ADBE] has generated a Total Debt to Total Equity ratio of 39.30. Similarly, its Total Debt to Total Capital is 28.21, while its Total Debt to Total Assets stands at 19.51. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 20.70, and its Long-Term Debt to Total Capital is 9.39.
What about valuation? This company’s Enterprise Value to EBITDA is 43.18 and its Total Debt to EBITDA Value is 1.04. The Enterprise Value to Sales for this firm is now 15.38, and its Total Debt to Enterprise Value stands at 0.03. Adobe Inc. [ADBE] has a Price to Book Ratio of 14.18, a Price to Cash Flow Ratio of 34.41 and P/E Ratio of 62.40. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, Adobe Inc. [ADBE] earns $491,801 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 7.81 and its Total Asset Turnover is 0.55. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.77 and its Current Ratio is 0.77. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Adobe Inc. [ADBE] has 489.55M shares outstanding, amounting to a total market cap of $183.50B. Its stock price has been found in the range of 249.10 to 374.48. At its current price, it has moved up by 0.10% from its 52-week high, and it has moved up 50.48% from its 52-week low.
This stock’s Beta value is currently 1.05, which indicates that it is 1.61% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 76.03. This RSI suggests that Adobe Inc. is currently Overbought.
Conclusion: Is Adobe Inc. [ADBE] a Reliable Buy?
Shares of Adobe Inc. [ADBE], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.