Earnings Calendar (09Jun25)
I am interested in the earnings releases of Adobe, Oracle, and GameStop.
Let us look into Adobe Systems in detail.
Adobe has a “Strong Buy” technical analysis recommendation. The Analyst’s sentiment is “Buy”. The price target is $488.02, which represents an upside of 17.05%.
10-year performance of Adobe:
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Revenue grew from $4,796M in 2015 to $21,505M in 2024, over 4x over 10 years. Growth: Revenue grew from $4,796M to $21,505M, with a 10-year CAGR of 17.9%. Growth rates varied, peaking at 24.7% in 2017 and slowing to 10.8% in 2024, showing consistent expansion.
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Operating Margin grew from 18.8% (2015) to 36.0% (2024). Trend: Operating margin improved significantly from 18.8% to 36.0%, with a notable rise from 25.5% in 2016 to a peak of 34.6% in 2022, reflecting enhanced profitability over time.
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Earnings Per Share (EPS) grew from $1.24 (2015) to $12.36 (2024). EPS increased steadily from $1.24 to $12.36, with a 10-year CAGR of 37.0%. Growth was strong (e.g., 55.8% in 2018), with a minor dip of -7.5% in 2021, indicating robust earnings growth.
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The EV/FCF ratio is 19.2, and FCF growth is 21.3% (10-year CAGR). This suggests solid cash flow generation, supporting operational and investment needs.
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Direct net assets aren’t listed, but Assets growth is 10.9% (10-year CAGR), and Debt/Assets is low at 0.2, with Assets/Equity at 1.8 and Debt/Equity at 0.3. This indicates a strong balance sheet with manageable debt and growing assets.
Adobe demonstrated strong revenue growth (17.9% compound annual growth rate, or CAGR) and excellent earnings per share (EPS) growth (37.0% CAGR), with operating margins improving from 18.8% to 36.0%. FCF grew steadily at 21.3% CAGR, and the balance sheet remained healthy with low debt relative to assets. Overall, Adobe shows consistent financial improvement over the decade.
With the above, Adobe should be a good addition to our portfolio. Let us research before investing. Let us factor in an adequate margin of safety (MOS) before we invest.
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