NASDAQ:ADSK is not too expensive for the growth it is showing.

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.

A Closer Look at Growth for NASDAQ:ADSK

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 12.04%, which is quite good.
• ADSK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 50.10% yearly.
• The Revenue has grown by 11.50% 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 16.42% yearly.
• Based on estimates for the next years, ADSK will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.85% on average per year.
• The Revenue is expected to grow by 11.02% on average over the next years. This is quite good.

Understanding NASDAQ:ADSK's Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:ADSK has achieved a 5 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of ADSK indicates a somewhat cheap valuation: ADSK is cheaper than 68.59% of the companies listed in the same industry.
• ADSK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADSK is cheaper than 68.23% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, ADSK is valued rather cheaply.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADSK indicates a somewhat cheap valuation: ADSK is cheaper than 69.68% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADSK indicates a somewhat cheap valuation: ADSK is cheaper than 63.54% of the companies listed in the same industry.
• ADSK has an outstanding profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as ADSK's earnings are expected to grow with 12.28% in the coming years.

Looking at the Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:ADSK, the assigned 6 for health provides valuable insights:

• An Altman-Z score of 5.92 indicates that ADSK is not in any danger for bankruptcy at the moment.
• The Altman-Z score of ADSK (5.92) is better than 68.23% of its industry peers.
• The Debt to FCF ratio of ADSK is 1.82, which is an excellent value as it means it would take ADSK, only 1.82 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 1.82, ADSK is doing good in the industry, outperforming 67.15% of the companies in the same industry.
• Even though the debt/equity ratio score it not favorable for ADSK, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
• ADSK does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Understanding NASDAQ:ADSK's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:ADSK has achieved a 9:

• The Return On Assets of ADSK (10.77%) is better than 88.45% of its industry peers.
• The Return On Equity of ADSK (41.70%) is better than 95.67% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 19.18%, ADSK belongs to the top of the industry, outperforming 93.14% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for ADSK is above the industry average of 12.13%.
• The 3 year average ROIC (14.43%) for ADSK is below the current ROIC(19.18%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 18.30%, ADSK belongs to the top of the industry, outperforming 84.84% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 21.86%, ADSK belongs to the top of the industry, outperforming 88.81% of the companies in the same industry.
• ADSK's Operating Margin has improved in the last couple of years.
• With an excellent Gross Margin value of 90.71%, ADSK belongs to the best of the industry, outperforming 97.11% of the companies in the same industry.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Check the latest full fundamental report of ADSK for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.