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Adobe Systems Incorporated (NASDAQ: ADBE) – Is this large market cap stock undervalued?

Adobe Systems Incorporated (NASDAQ: ADBE), is firmly in the large market cap category with market cap of 54557.77. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Adobe Systems Incorporated is 109.49 (with a change from open of 0.01%), this in conjunction with a target price of 118.46. Volume today has so far reached 2739800, with an average volume of about 2216.49. The GAP for this stock, is -0.20%.

The P/E ratio is 55.78, bringing the forward P/E to a value of 28.38. The current EPS for Adobe Systems Incorporated, is 1.96, with a EPS growth for this year coming to a value of 135.20%. Performance has been interesting with performance year to date coming to 16.55%.

Looking further into the growth statistics for Adobe Systems Incorporated, EPS is looking like it will grow 30.07% in the next year. Looking even further it is projected to be 30.60%. Quarter over quarter is 55.90% for EPS growth and for sales growth quarter over quarter it is 20.20%. Looking at past EPS growth statistics we see that for the past five years it has been -3.40%. Sales growth for the past five years has in fact been 4.80%.

Looking at the ownership, we see that the insider ownership is at 0.10% and institutional ownership is 89.30%. Shares outstanding is 498.29, while shares float is at a value of 495.81. Float short for Adobe Systems Incorporated is 0.95% and the short ratio is 2.13.

In terms of debt, long term debt/equity is 0.26, while the total debt/equity comes to 0. The ability to meet these debts, means that the current ratio is 2.2, and the quick ratio is 2.2. The most recent gross margin is 85.50% and their operating margin is 23.60%. The profit margin is 17.90%.

Adobe Systems Incorporated has seen returns on assets of 8.20%, and on investment, 7.40%. Return on equity is 13.90%. Price/Earnings to growth ratio is 1.82. Price/Sales ratio is at a value of 9.83, with Price/book ratio coming to 7.5 and Price/cash is 12.27, and finally Price/Free cash Flow is 64.

The simple moving averages are 8.76% and 16.21% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -0.25% and the 52 week low is 53.63%.

Adobe Systems Incorporated has a dividend yield of *TBA, with a current price of 109.49. The ability to pay this means the payout ratio is 0.00%. This is in an industry, Application Software, with equally high dividends from other companies in this sector, which it is Technology. Adobe Systems Incorporated is based in USA.

Performance in the Application Software industry means that Adobe Systems Incorporated has seen performance for the past week of 1.59%, with performance for the month coming to 7.03%. Looking at the data for the quarter it is at a value of 16.00%, and for the half year the performance is 37.15%. Volatility for this week is 1.43% and for the month this is 1.36%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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