ADBE  Adobe Systems Incorporated

Exchange

NASDAQ

Sector

Technology

Industry

Computer Software: Prepackaged Software

Market Cap.

54.47B

Shrinking Competitive Advantage over the past 10 years

ADBE has a shrinking competitive advantage. This could be due to weakening branding, the inability to keep costs low, or by new competitors entering the industry. Look at its future prospects to determine sustainability and whether the economic moat will continue to shrink or if it will rebound.

$16.58 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in November
2006200720082009201020112012201320142015
Net Income 505.81M 723.81M 871.81M 386.51M 774.68M 832.85M 832.78M 289.99M 268.40M 629.55M
divided by
Revenue 2.58B 3.16B 3.58B 2.95B 3.80B 4.22B 4.40B 4.06B 4.15B 4.80B
Net Profit Margin 19.64% 22.92% 24.35% 13.12% 20.39% 19.75% 18.91% 7.15% 6.47% 13.13%

Strong Pricing Power over the past 10 years

ADBE has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$88.02 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in November
2006200720082009201020112012201320142015
Gross Profit 2.28B 2.80B 3.22B 2.65B 3.40B 3.78B 3.92B 3.47B 3.52B 4.05B
divided by
Revenue 2.58B 3.16B 3.58B 2.95B 3.80B 4.22B 4.40B 4.06B 4.15B 4.80B
Gross Margin 88.64% 88.77% 89.87% 89.93% 89.38% 89.61% 89.01% 85.54% 85.00% 84.48%

Medium Capital Intensity over the past 10 years

ADBE has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

30.78% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in November
2006200720082009201020112012201320142015
Capital Expenditure 83.25M 132.08M 111.79M 119.59M 169.64M 210.29M 271.08M 188.36M 148.33M 184.94M
divided by
Net Income 505.81M 723.81M 871.81M 386.51M 774.68M 832.85M 832.78M 289.99M 268.40M 629.55M
Capital Expenditure Ratio 16.46% 18.25% 12.82% 30.94% 21.90% 25.25% 32.55% 64.95% 55.27% 29.38%