Adobe Inc. (ADBE) on Decifer

Decifer ranks ADBE number 260 of 277 tracked names on durable business quality.

Why it ranks here

• It earns strong returns on the money it puts to work, around 37% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is growing about 11% a year and profits grew 34% over the past year.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• It is not watering down its owners with new shares and it returns cash to shareholders and its own insiders have been buying.
• Our durability check found pressure on this name, which costs it a few points.
• Strong returns around 37% cannot offset price momentum of just 1 out of 35, durability pressure, and no growth role in our worldview.

The current read

The evidence on ADBE lines up on the supportive side: the intelligence feed flags this name as connected to what is moving markets now. One signal disagrees: the longer-term story is intact, but price is not rewarding it: semiconductor stocks are down 7.5% this week. The drop is large enough to signal near-term caution, worth watching but not the weight of the evidence.

Themes

• Software, Cloud & AI Platforms: Adobe Inc. operates in software - application. That places it inside the Software, Cloud & AI Platforms story.

Read the full ADBE research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.