Overall ADSK gets a fundamental rating of 7 out of 10. We evaluated ADSK against 278 industry peers in the Software industry. ADSK has an excellent profitability rating, but there are some minor concerns on its financial health. ADSK is growing strongly while it is still valued neutral. This is a good combination! These ratings would make ADSK suitable for growth investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ADSK was profitable.
In the past year ADSK had a positive cash flow from operations.
Each year in the past 5 years ADSK has been profitable.
ADSK had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 9.92%, ADSK belongs to the best of the industry, outperforming 82.37% of the companies in the same industry.
Looking at the Return On Equity, with a value of 38.40%, ADSK belongs to the top of the industry, outperforming 94.24% of the companies in the same industry.
With an excellent Return On Invested Capital value of 20.36%, ADSK belongs to the best of the industry, outperforming 94.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ADSK is significantly above the industry average of 10.73%.
The 3 year average ROIC (16.69%) for ADSK is below the current ROIC(20.36%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	9.92%
ROE	38.4%
ROIC	20.36%

ROA(3y)9.38%

ROA(5y)10.1%

ROE(3y)54.38%

ROE(5y)69.36%

ROIC(3y)16.69%

ROIC(5y)14.67%

1.3 Margins

ADSK's Profit Margin of 16.13% is fine compared to the rest of the industry. ADSK outperforms 79.14% of its industry peers.
ADSK's Profit Margin has improved in the last couple of years.
The Operating Margin of ADSK (23.87%) is better than 89.21% of its industry peers.
ADSK's Operating Margin has improved in the last couple of years.
ADSK has a better Gross Margin (90.74%) than 98.20% of its industry peers.
ADSK's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	23.87%
PM (TTM)	16.13%
GM	90.74%

OM growth 3Y16.62%

OM growth 5Y16.31%

PM growth 3Y16.98%

PM growth 5Y22.59%

GM growth 3Y0.04%

GM growth 5Y0.11%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

ADSK has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ADSK has about the same amout of shares outstanding than it did 1 year ago.
ADSK has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ADSK has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 4.70 indicates that ADSK is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.70, ADSK is in the better half of the industry, outperforming 75.18% of the companies in the same industry.
ADSK has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.19, ADSK is in the better half of the industry, outperforming 73.02% of the companies in the same industry.
A Debt/Equity ratio of 0.86 indicates that ADSK is somewhat dependend on debt financing.
The Debt to Equity ratio of ADSK (0.86) is worse than 73.74% 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.

		Industry Rank	Sector Rank
Debt/Equity	0.86
Debt/FCF	1.19
Altman-Z	4.7

ROIC/WACC1.85

WACC11%

2.3 Liquidity

ADSK has a Current Ratio of 0.82. This is a bad value and indicates that ADSK is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.82, ADSK is doing worse than 83.81% of the companies in the same industry.
A Quick Ratio of 0.82 indicates that ADSK may have some problems paying its short term obligations.
ADSK has a worse Quick ratio (0.82) than 83.09% of its industry peers.
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.

		Industry Rank	Sector Rank
Current Ratio	0.82
Quick Ratio	0.82

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

ADSK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.20%, which is quite good.
The Earnings Per Share has been growing by 24.81% on average over the past years. This is a very strong growth
ADSK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.55%.
Measured over the past years, ADSK shows a quite strong growth in Revenue. The Revenue has been growing by 13.37% on average per year.

EPS 1Y (TTM)19.2%

EPS 3Y18.7%

EPS 5Y24.81%

EPS Q2Q%23.04%

Revenue 1Y (TTM)15.55%

Revenue growth 3Y11.81%

Revenue growth 5Y13.37%

Sales Q2Q%18.03%

3.2 Future

Based on estimates for the next years, ADSK will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.57% on average per year.
The Revenue is expected to grow by 13.10% on average over the next years. This is quite good.

EPS Next Y22.93%

EPS Next 2Y18.03%

EPS Next 3Y17.12%

EPS Next 5Y18.57%

Revenue Next Year16.9%

Revenue Next 2Y14%

Revenue Next 3Y12.71%

Revenue Next 5Y13.1%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 25.62 indicates a quite expensive valuation of ADSK.
ADSK's Price/Earnings ratio is a bit cheaper when compared to the industry. ADSK is cheaper than 64.39% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.32. ADSK is around the same levels.
With a Price/Forward Earnings ratio of 21.41, ADSK is valued on the expensive side.
66.91% of the companies in the same industry are more expensive than ADSK, based on the Price/Forward Earnings ratio.
ADSK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	25.62
Fwd PE	21.41

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ADSK is valued a bit cheaper than the industry average as 67.99% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ADSK is valued a bit cheaper than 69.78% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	25.74
EV/EBITDA	29.16

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ADSK may justify a higher PE ratio.
ADSK's earnings are expected to grow with 17.12% in the coming years. This may justify a more expensive valuation.