Adobe ADBE
Adobe is a software company selling subscriptions to creative tools (Photoshop, Illustrator), digital experience (Experience Cloud) and documents (Acrobat), with a recurring cloud-based revenue model. Adobe presents solid financial health (net debt/EBITDA of 0.12) and exceptional quality (ROE of 61.90%, gross margin of 89.25%), with an attractive valuation (P/E of 13.14, FCF yield of 9.98%) that is not discounting its 12.90% revenue growth.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Adobe is a software company selling subscriptions to creative tools (Photoshop, Illustrator), digital experience (Experience Cloud) and documents (Acrobat), with a recurring cloud-based revenue model. Adobe presents solid financial health (net debt/EBITDA of 0.12) and exceptional quality (ROE of 61.90%, gross margin of 89.25%), with an attractive valuation (P/E of 13.14, FCF yield of 9.98%) that is not discounting its 12.90% revenue growth.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.9 |
| Quality / Moat | 9.6 |
| Valuation | 8.8 |
| Growth | 6.8 |
| Dividend | 1.5 |
| Momentum | 3.3 |
| Risk & Context | 4.3 |
OVERALL SCORE: 7.0/10
Context and risks
The macro context (rising rates, geopolitical tensions) does not materially affect Adobe: its subscription software business has no direct exposure to commodities or shipping routes, and its balance sheet is solid with net debt/EBITDA of 0.12. The interest rate risk is already captured by the quantitative engine.
News considered in the analysis
- AI Is Powering A Profit Boom — But Is It An 'Earnings Bubble'? Wall Street Analyst Weighs In — Opinión de analista sobre el ciclo de IA en general, sin información específica nueva sobre Adobe.
- Nvidia, Micron, Alphabet, Oracle and Adobe are part of Zacks Earnings Preview — Listado genérico de empresas que publicarán resultados, sin datos concretos.
- Adobe Stock And 2 Other AI Stocks To Own — Artículo promocional o listículo sin información nueva que afecte a la valoración.
- Investors Heavily Search Adobe Inc. (ADBE): Here is What You Need to Know — Contenido de relleno sin información sustancial.
- Prediction: Adobe Stock Trades Back Above $350 Before 2030 — Predicción especulativa a largo plazo sin base en hechos actuales.
Verdict: Hold or buy on dips: Adobe's fundamentals are solid and valuation is reasonable, although negative momentum (-19.11%) suggests waiting for a reversal signal.
Main risk: The main risk is the deceleration of earnings growth (10.50%) in a highly competitive generative AI environment, which could compress its competitive advantage and pricing power.
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