Analysts estimate Adobe Inc. (ADBE) To Grow by 43.15%: Here is Why

Adobe Inc. (ADBE) is owned by a number of high-value investors. Its largest direct holder is Shantanu Narayen Chairman of the Board, President and Chief Executive Officer with 230,797 shares. The second-largest direct holder is Bryan S. Lamkin Executive Vice President and General Manager, Digital Media, with 63,087 shares of the company’s stock. In third place with 51,919 shares of ADBE is Matthew Thompson Executive Vice President, Worldwide Field Operations.

Now turning to institutional ownership of Adobe Inc. (ADBE), The Vanguard Group, Inc. is the top holder with 37.0 million shares. The next largest fund holder of this company’s stock is Fidelity Management & Research Co. with 35.0 million shares. In the third-place spot with 22.0 million shares is BlackRock Fund Advisors.

This company’s stock price was $270.98 at the previous market close, with its latest volume reaching 1756206. Compare that to its average daily volume of 2.76M. Given the fact that this stock has 484.08M shares outstanding, its current market value is sitting at $131.18B. This publicly-traded stock’s 60-month Beta is 1.08. Its Price to Sales ratio is 12.32, its Price to Cash Flow ratio is 35.93, and its Price to Book ratio is 12.85.

ADBE stock has achieved a 5-day range of $259.57 to $271.61, with a total performance of +2.06% during that period. Meanwhile, in the past month of trading, this stock has traded in the range of $259.57 to $285.90, generating a -2.32% change during the period. In the past three months, this stock’s price has changed by -12.23%, trading in the range of $259.57 to $312.50.

In the past 5 days, shares of ADBE have made a new high 4 times. In the last month, it has made a new high 1 time, and in the past 3 months, it has made a new high 1 time.

Now let’s turn to this public company’s earnings. For the quarter ending 8/30/2019, the earnings per share (EPS) was reported at 2.05. This is a 0.08 difference compared to the consensus estimate of 1.97, amounting to an earnings surprise of 4.10%. In the previous quarter, which ended in 8/30/2019, the consensus estimate was 1.78, making for an earnings surprise of 2.80%. For the quarter ending 2/27/2019, EPS was reported at 1.71, generating a 5.60% earnings surprise.

The Net Income for the most recent full fiscal year, which ended in 11-2018, was $2.0 billion. This is compared to the prior year, where Net Income was $1.0 billion. Meanwhile, this company’s Operating Cash Flow was $4.0 billion for the year, compared to $2.0 billion in 2017. Capital Expenditures for the year were reportedly -$266.0 million, compared to -$178.0 million, and Free Cash flow was $3.0 billion compared to the prior year’s $2.0 billion.

Adobe Inc. (ADBE) stock currently has a Financial Strength score of 7/10. This is due to a combination of factors, including a Cash to Debt ratio of 0.88, an Equity to Asset ratio of 0.51, a Debt to Equity ratio of 0.4 and a Debt to EBITDA of 1.14. The Interest Coverage of this stock is 20.32, its Piotroski F-Score is 7, its Altman Z-Score is 9.91 and its Beneish M-Score is -2.52.

This publicly-traded company’s Profitability and Growth score is 9/10, thanks to a combination of things: an Operating Margin of 28.36, a Net Margin of 26.1, a ROE of 28.77, and a ROC of 274.05.

Shifting focus now to Valuation and Return for ADBE, this company’s Price to Median PS Value is 1.56. Price to Peter Lynch Fair Value for ADBE is now 1.92. Meanwhile, its Forward Rate of Return (Yactman) is 21.84.

Certain ratios provide helpful insights into how a stock is performing. The Quick Ratio for ADBE is sitting at 0.74, while its Current Ratio is 0.74 and its PEG Ratio is 1.22. This stock’s PB Ratio is 12.99, its PS Ratio is 12.56, its Forward PE Ratio is 27.78, and its PE Ratio without NRI is 48.13. Similarly, its Shiller PE Ratio is 115.31, its Price to Owner Earnings is 40.95, its Price to Free Cash Flow is 35.27 and its Price to Operating Cash Flow is 32.18.