In the world of growth stocks, NASDAQ:ADSK shines as a value proposition.

Last update: Oct 19, 2023

Our stock screening tool has pinpointed AUTODESK INC (NASDAQ:ADSK) as a growth stock that isn't overvalued. NASDAQ:ADSK is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Exploring NASDAQ:ADSK's Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:ADSK boasts a 7 out of 10:

ADSK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.76%, which is quite good.
ADSK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.35% yearly.
The Revenue has grown by 9.86% in the past year. This is quite good.
ADSK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.47% yearly.
The Earnings Per Share is expected to grow by 11.79% on average over the next years. This is quite good.
Based on estimates for the next years, ADSK will show a quite strong growth in Revenue. The Revenue will grow by 10.52% on average per year.

Assessing Valuation for NASDAQ:ADSK

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:ADSK has received a 5 out of 10:

Based on the Price/Earnings ratio, ADSK is valued a bit cheaper than the industry average as 79.14% of the companies are valued more expensively.
ADSK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADSK is cheaper than 76.62% of the companies in the same industry.
Based on the Enterprise Value to EBITDA ratio, ADSK is valued a bit cheaper than 75.90% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADSK indicates a rather cheap valuation: ADSK is cheaper than 84.89% of the companies listed in the same industry.
ADSK has an outstanding profitability rating, which may justify a higher PE ratio.
ADSK's earnings are expected to grow with 14.86% in the coming years. This may justify a more expensive valuation.

Health Insights: NASDAQ:ADSK

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:ADSK scores a 5 out of 10:

An Altman-Z score of 3.88 indicates that ADSK is not in any danger for bankruptcy at the moment.
ADSK's Altman-Z score of 3.88 is fine compared to the rest of the industry. ADSK outperforms 66.91% of its industry peers.
The Debt to FCF ratio of ADSK is 1.04, which is an excellent value as it means it would take ADSK, only 1.04 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ADSK (1.04) is better than 78.42% of its industry peers.
Although ADSK does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

Profitability Insights: NASDAQ:ADSK

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:ADSK scores a 9 out of 10:

Looking at the Return On Assets, with a value of 9.60%, ADSK belongs to the top of the industry, outperforming 93.17% of the companies in the same industry.
Looking at the Return On Equity, with a value of 72.47%, ADSK belongs to the top of the industry, outperforming 98.56% of the companies in the same industry.
ADSK has a better Return On Invested Capital (16.93%) than 94.96% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ADSK is above the industry average of 10.82%.
The last Return On Invested Capital (16.93%) for ADSK is above the 3 year average (13.78%), which is a sign of increasing profitability.
ADSK has a Profit Margin of 16.77%. This is amongst the best in the industry. ADSK outperforms 91.01% of its industry peers.
ADSK's Profit Margin has improved in the last couple of years.
ADSK has a Operating Margin of 19.42%. This is amongst the best in the industry. ADSK outperforms 90.29% of its industry peers.
In the last couple of years the Operating Margin of ADSK has grown nicely.
With an excellent Gross Margin value of 90.45%, ADSK belongs to the best of the industry, outperforming 97.84% of the companies in the same industry.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Our latest full fundamental report of ADSK contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.