2026-06-18 10:10 UTC
Open a short position on ADBE due to strong bearish technical signals and neutral macro evidence.
Open a short position on ADBE due to strong bearish technical signals and neutral macro evidence.
The technical analysis indicates a strong bearish breakdown with high volume, suggesting further downside potential. Although the macro evidence is neutral, it does not contradict the bearish technical setup, allowing for a short position.
Adobe Inc. shows strong profitability and adequate liquidity, with a balanced leverage profile.
Not applicable for stock analysis.
Monitor Adobe's revenue growth and cost management strategies in upcoming quarters.
Macro analysis 9 claims Open analysis Close analysis
Adobe's financial health is characterized by strong profitability and adequate liquidity, supporting its operational stability. The company's balanced leverage and strong interest coverage ratio further enhance its financial resilience, making it well-positioned to capitalize on growth opportunities.
- High gross margin indicating efficient cost management.
- Strong operating margin reflecting robust revenue generation.
- Adequate liquidity ratios suggesting moderate financial flexibility.
- Balanced leverage ratios indicating a stable capital structure.
- Potential volatility in technology sector impacting revenue.
- Macroeconomic factors affecting software demand.
- Interest rate changes influencing debt servicing costs.
Evidence report 9 claims Open evidence
Adobe's gross margin is 89.12%, indicating efficient cost management.
- Formula
- gross_profit_on_sales / sales_revenues * 100
- Input
- gross_profit_on_sales=5900000000.0, sales_revenues=6620000000.0
- Calculation
- 5900000000.0 / 6620000000.0 * 100
- Value
- 89.12%
Adobe's operating margin is 33.84%, reflecting robust revenue generation.
- Formula
- operating_profit / sales_revenues * 100
- Input
- operating_profit=2240000000.0, sales_revenues=6620000000.0
- Calculation
- 2240000000.0 / 6620000000.0 * 100
- Value
- 33.84%
Adobe's net margin is 25.83%, indicating strong profitability.
- Formula
- net_income / sales_revenues * 100
- Input
- net_income=1710000000.0, sales_revenues=6620000000.0
- Calculation
- 1710000000.0 / 6620000000.0 * 100
- Value
- 25.83%
Adobe's EBITDA margin is 46.68%, showing strong earnings before interest, taxes, depreciation, and amortization.
- Formula
- ebitda / sales_revenues * 100
- Input
- ebitda=3090000000.0, sales_revenues=6620000000.0
- Calculation
- 3090000000.0 / 6620000000.0 * 100
- Value
- 46.68%
Adobe's current ratio is 0.75, indicating moderate liquidity.
- Formula
- current_assets / current_liabilities
- Input
- current_assets=9070000000.0, current_liabilities=12080000000.0
- Calculation
- 9070000000.0 / 12080000000.0
- Value
- 0.75
Adobe's cash-to-debt ratio is 0.74, reflecting its ability to cover debt with cash reserves.
- Formula
- cash_and_equivalent / debt
- Input
- cash_and_equivalent=4920000000.0, debt=6660000000.0
- Calculation
- 4920000000.0 / 6660000000.0
- Value
- 0.74
Adobe's debt-to-equity ratio is 0.58, indicating a balanced capital structure.
- Formula
- debt / equity_capital_and_reserves
- Input
- debt=6660000000.0, equity_capital_and_reserves=11520000000.0
- Calculation
- 6660000000.0 / 11520000000.0
- Value
- 0.58
Adobe's debt-to-assets ratio is 22.25%, showing a conservative leverage position.
- Formula
- debt / assets * 100
- Input
- debt=6660000000.0, assets=29930000000.0
- Calculation
- 6660000000.0 / 29930000000.0 * 100
- Value
- 22.25%
Adobe's interest coverage ratio is 34.46, indicating strong ability to meet interest obligations.
- Formula
- ebit / interest_expense_on_debt
- Input
- ebit=2240000000.0, interest_expense_on_debt=65000000.0
- Calculation
- 2240000000.0 / 65000000.0
- Value
- 34.46
Data gaps 1 Open gaps
PE does not align with stock price divided by EPS.
If EPS is directly comparable with stock price, price/EPS should be close to PE. A large mismatch may mean period mismatch, TTM vs quarterly data, or extraction inconsistency. IMPORTANT WARNINGAdobe Inc. exhibits strong financial health with high profitability margins and adequate liquidity, supported by a balanced leverage profile. This positions the company well for future growth and operational stability.
Stock supportive evidence 4 Open evidence
Adobe's gross margin is 89.12%, indicating efficient cost management.
A high gross margin indicates that Adobe is effectively managing its production costs relative to its sales.Adobe's operating margin is 33.84%, reflecting robust revenue generation.
A strong operating margin suggests Adobe's ability to convert sales into operating profit efficiently.Adobe's net margin is 25.83%, indicating strong profitability.
A high net margin reflects Adobe's effective cost control and profitability.Adobe's EBITDA margin is 46.68%, showing strong earnings before interest, taxes, depreciation, and amortization.
A high EBITDA margin indicates strong operational performance before accounting for financial and tax obligations.Stock caution evidence 5 Open caution
Adobe's current ratio is 0.75, indicating moderate liquidity.
A current ratio below 1 suggests Adobe may need to manage its short-term liabilities carefully.Adobe's cash-to-debt ratio is 0.74, reflecting its ability to cover debt with cash reserves.
A cash-to-debt ratio below 1 indicates Adobe's cash reserves are less than its total debt, requiring careful debt management.Adobe's debt-to-equity ratio is 0.58, indicating a balanced capital structure.
A debt-to-equity ratio below 1 suggests Adobe uses more equity than debt to finance its assets, indicating lower financial risk.Adobe's debt-to-assets ratio is 22.25%, showing a conservative leverage position.
A low debt-to-assets ratio indicates Adobe's conservative use of debt relative to its total assets.Adobe's interest coverage ratio is 34.46, indicating strong ability to meet interest obligations.
A high interest coverage ratio indicates Adobe's strong ability to cover interest expenses with its earnings.