AUTODESK INC (ADSK) Stock Fundamental Analysis
NASDAQ:ADSK - Nasdaq - US0527691069 - Common Stock - Currency: USD
ADSK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. ADSK has an excellent profitability rating, but there are some minor concerns on its financial health. ADSK is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes ADSK very considerable for growth investing!
1. Profitability
1.1 Basic Checks
ADSK had positive earnings in the past year.
ADSK had a positive operating cash flow in the past year.
Each year in the past 5 years ADSK has been profitable.
In the past 5 years ADSK always reported a positive cash flow from operatings.
1.2 Ratios
ADSK has a better Return On Assets (10.77%) than 87.63% of its industry peers.
ADSK's Return On Equity of 41.70% is amongst the best of the industry. ADSK outperforms 94.35% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.41%, ADSK belongs to the top of the industry, outperforming 94.35% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ADSK is significantly above the industry average of 10.81%.
The 3 year average ROIC (16.69%) for ADSK is below the current ROIC(18.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.77% | ||
| ROE | 41.7% | ||
| ROIC | 18.41% |
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
With an excellent Profit Margin value of 18.30%, ADSK belongs to the best of the industry, outperforming 84.81% of the companies in the same industry.
In the last couple of years the Profit Margin of ADSK has grown nicely.
With an excellent Operating Margin value of 21.86%, ADSK belongs to the best of the industry, outperforming 89.75% of the companies in the same industry.
ADSK's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 90.71%, ADSK belongs to the top of the industry, outperforming 97.17% of the companies in the same industry.
ADSK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.86% | ||
| PM (TTM) | 18.3% | ||
| GM | 90.71% |
OM growth 3Y16.62%
OM growth 5Y16.31%
PM growth 3Y16.98%
PM growth 5Y22.59%
GM growth 3Y0.04%
GM growth 5Y0.11%
2. Health
2.1 Basic Checks
ADSK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ADSK has more shares outstanding
The number of shares outstanding for ADSK has been reduced compared to 5 years ago.
Compared to 1 year ago, ADSK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.12 indicates that ADSK is not in any danger for bankruptcy at the moment.
ADSK has a Altman-Z score of 5.12. This is in the better half of the industry: ADSK outperforms 69.61% 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.
The Debt to FCF ratio of ADSK (1.82) is better than 66.43% of its industry peers.
ADSK has a Debt/Equity ratio of 0.76. This is a neutral value indicating ADSK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.76, ADSK is doing worse than 71.38% of the companies in the same industry.
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 | 0.76 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.12 |
ROIC/WACC1.33
WACC13.86%
2.3 Liquidity
A Current Ratio of 0.65 indicates that ADSK may have some problems paying its short term obligations.
ADSK's Current ratio of 0.65 is on the low side compared to the rest of the industry. ADSK is outperformed by 87.28% of its industry peers.
A Quick Ratio of 0.65 indicates that ADSK may have some problems paying its short term obligations.
With a Quick ratio value of 0.65, ADSK is not doing good in the industry: 86.57% of the companies in the same industry are doing better.
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 | 0.65 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
ADSK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.29%, which is quite good.
ADSK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.81% yearly.
The Revenue has grown by 11.53% 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 13.37% yearly.
EPS 1Y (TTM)11.29%
EPS 3Y18.7%
EPS 5Y24.81%
EPS Q2Q%9.57%
Revenue 1Y (TTM)11.53%
Revenue growth 3Y11.81%
Revenue growth 5Y13.37%
Sales Q2Q%11.57%
3.2 Future
ADSK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.93% yearly.
ADSK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.00% yearly.
EPS Next Y11.17%
EPS Next 2Y12.93%
EPS Next 3Y12.23%
EPS Next 5Y13.93%
Revenue Next Year13.06%
Revenue Next 2Y11.97%
Revenue Next 3Y11.24%
Revenue Next 5Y10%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 30.63, ADSK can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ADSK is valued a bit cheaper than the industry average as 68.20% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.35. ADSK is around the same levels.
With a Price/Forward Earnings ratio of 27.55, ADSK can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADSK indicates a somewhat cheap valuation: ADSK is cheaper than 69.26% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. ADSK is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.63 | ||
| Fwd PE | 27.55 |
4.2 Price Multiples
72.08% of the companies in the same industry are more expensive than ADSK, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ADSK is valued a bit cheaper than the industry average as 61.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.53 | ||
| EV/EBITDA | 38.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ADSK does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ADSK may justify a higher PE ratio.
ADSK's earnings are expected to grow with 12.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.74
PEG (5Y)1.23
EPS Next 2Y12.93%
EPS Next 3Y12.23%
5. Dividend
5.1 Amount
ADSK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
259.75
-0.64 (-0.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners93.96%
Inst Owner Change1.4%
Ins Owners0.16%
Ins Owner Change2.6%
Market Cap55.85B
Analysts78.29
Price Target343.5 (32.24%)
Short Float %1.17%
Short Ratio1.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.89%
Min EPS beat(2)0.48%
Max EPS beat(2)5.3%
EPS beat(4)4
Avg EPS beat(4)3.63%
Min EPS beat(4)0.48%
Max EPS beat(4)5.3%
EPS beat(8)7
Avg EPS beat(8)2.94%
EPS beat(12)10
Avg EPS beat(12)2.59%
EPS beat(16)14
Avg EPS beat(16)3.46%
Revenue beat(2)0
Avg Revenue beat(2)-0.98%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)-0.46%
Revenue beat(4)1
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-1.51%
Max Revenue beat(4)0.62%
Revenue beat(8)1
Avg Revenue beat(8)-0.71%
Revenue beat(12)2
Avg Revenue beat(12)-0.76%
Revenue beat(16)4
Avg Revenue beat(16)-0.66%
PT rev (1m)1.84%
PT rev (3m)4.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.65%
EPS NY rev (1m)0.28%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.63 | ||
| Fwd PE | 27.55 | ||
| P/S | 9.37 | ||
| P/FCF | 44.53 | ||
| P/OCF | 41.31 | ||
| P/B | 21.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 38.09 |
EPS(TTM)8.48
EY3.26%
EPS(NY)9.43
Fwd EY3.63%
FCF(TTM)5.83
FCFY2.25%
OCF(TTM)6.29
OCFY2.42%
SpS27.73
BVpS12.17
TBVpS-10.39
PEG (NY)2.74
PEG (5Y)1.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.77% | ||
| ROE | 41.7% | ||
| ROCE | 23% | ||
| ROIC | 18.41% | ||
| ROICexc | 26.39% | ||
| ROICexgc | N/A | ||
| OM | 21.86% | ||
| PM (TTM) | 18.3% | ||
| GM | 90.71% | ||
| FCFM | 21.04% |
ROA(3y)9.38%
ROA(5y)10.1%
ROE(3y)54.38%
ROE(5y)69.36%
ROIC(3y)16.69%
ROIC(5y)14.67%
ROICexc(3y)26.54%
ROICexc(5y)24.06%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)20.85%
ROCE(5y)18.33%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y18.27%
ROICexc growth 5Y3.23%
OM growth 3Y16.62%
OM growth 5Y16.31%
PM growth 3Y16.98%
PM growth 5Y22.59%
GM growth 3Y0.04%
GM growth 5Y0.11%
F-Score8
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 1.82 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 57.31% | ||
| Cap/Sales | 1.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.72% | ||
| Profit Quality | 114.94% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 5.12 |
F-Score8
WACC13.86%
ROIC/WACC1.33
Cap/Depr(3y)43.74%
Cap/Depr(5y)50.72%
Cap/Sales(3y)1.23%
Cap/Sales(5y)1.55%
Profit Quality(3y)173.19%
Profit Quality(5y)185.07%
High Growth Momentum
Growth
EPS 1Y (TTM)11.29%
EPS 3Y18.7%
EPS 5Y24.81%
EPS Q2Q%9.57%
EPS Next Y11.17%
EPS Next 2Y12.93%
EPS Next 3Y12.23%
EPS Next 5Y13.93%
Revenue 1Y (TTM)11.53%
Revenue growth 3Y11.81%
Revenue growth 5Y13.37%
Sales Q2Q%11.57%
Revenue Next Year13.06%
Revenue Next 2Y11.97%
Revenue Next 3Y11.24%
Revenue Next 5Y10%
EBIT growth 1Y19.54%
EBIT growth 3Y30.39%
EBIT growth 5Y31.85%
EBIT Next Year18.78%
EBIT Next 3Y15.11%
EBIT Next 5Y12.43%
FCF growth 1Y-27.64%
FCF growth 3Y0.91%
FCF growth 5Y2.02%
OCF growth 1Y-24.34%
OCF growth 3Y1.62%
OCF growth 5Y2.58%