Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In the fast-paced and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Adobe (NASDAQ:ADBE) in comparison to its major competitors within the Software industry. By analyzing crucial financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in the industry.
Adobe Background Adobe provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuring, optimizing and engaging with compelling content multiple operating systems, devices and media. The company operates with three segments: digital media content creation, digital experience for marketing solutions, and publishing for legacy products (less than 5% of revenue).
| Adobe Inc | 47.91 | 15.37 | 12.99 | 9.17% | $1.99 | $4.31 | 10.31% |
| Salesforce Inc | 129.30 | 3.47 | 6.19 | 2.19% | $2.42 | $6.49 | 11.44% |
| SAP SE | 82.77 | 3.46 | 4.58 | 8.41% | $1.8 | $5.41 | 4.84% |
| Intuit Inc | 64.15 | 8.77 | 10.64 | 0.51% | $0.26 | $2.0 | 12.34% |
| Synopsys Inc | 73.59 | 12.51 | 13.78 | 5.7% | $0.38 | $1.18 | 19.2% |
| Cadence Design Systems Inc | 76.61 | 23.34 | 17.97 | 7.56% | $0.34 | $0.88 | 13.88% |
| Roper Technologies Inc | 45.49 | 3.17 | 9.20 | 2.21% | $0.68 | $1.07 | 16.81% |
| Autodesk Inc | 52.72 | 37.66 | 8.85 | 21.11% | $0.29 | $1.22 | 8.73% |
| Ansys Inc | 50.55 | 5.36 | 12.20 | 1.43% | $0.13 | $0.43 | 4.8% |
| Zoom Video Communications Inc | 143.15 | 2.89 | 4.57 | 2.69% | $0.2 | $0.87 | 3.57% |
| PTC Inc | 55.17 | 6.51 | 8.23 | 2.4% | $0.15 | $0.43 | 17.27% |
| Tyler Technologies Inc | 101.55 | 5.96 | 8.77 | 1.8% | $0.1 | $0.22 | 7.59% |
| Bentley Systems Inc | 107.94 | 24.26 | 15.03 | 7.75% | $0.07 | $0.23 | 10.61% |
| Dynatrace Inc | 99.29 | 8.37 | 11.65 | 2.31% | $0.05 | $0.27 | 24.55% |
| AppLovin Corp | 810.60 | 9.29 | 5.23 | 4.69% | $0.27 | $0.49 | -3.36% |
| Manhattan Associates Inc | 90.77 | 75.82 | 15.55 | 22.54% | $0.05 | $0.12 | 20.37% |
| Average | 132.24 | 15.39 | 10.16 | 6.22% | $0.48 | $1.42 | 11.51% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } After examining Adobe, the following trends can be inferred:
- The Price to Earnings ratio of 47.91 is 0.36x lower than the industry average, indicating potential undervaluation for the stock.
- The current Price to Book ratio of 15.37, which is 1.0x the industry average, is substantially lower than the industry average, indicating potential undervaluation.
- With a relatively high Price to Sales ratio of 12.99, which is 1.28x the industry average, the stock might be considered overvalued based on sales performance.
- With a Return on Equity (ROE) of 9.17% that is 2.95% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
- Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $1.99 Billion, which is 4.15x above the industry average, indicating stronger profitability and robust cash flow generation.
- The gross profit of $4.31 Billion is 3.04x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
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With a revenue growth of 10.31%, which is much lower than the industry average of 11.51%, the company is experiencing a notable slowdown in sales expansion.
The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When comparing Adobe with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:
- When comparing the debt-to-equity ratio, Adobe is in a stronger financial position compared to its top 4 peers.
- The company has a lower level of debt relative to its equity, indicating a more favorable balance between the two with a lower debt-to-equity ratio of 0.26.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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