AUTODESK INC (NASDAQ:ADSK) - A Strong Growth Stock with Reasonable Valuation

AUTODESK INC (NASDAQ:ADSK) stands out as an affordable growth stock based on our screening criteria. The company demonstrates solid growth potential while maintaining reasonable valuation levels, along with strong profitability and acceptable financial health.

Growth Prospects

• Revenue Growth: ADSK’s revenue increased by 12.44% over the past year, with an average annual growth rate of 13.37% in recent years.
• Earnings Expansion: Earnings per share (EPS) grew by 12.09% in the last year, with a strong long-term annualized growth rate of 24.81%.
• Future Expectations: Analysts project continued growth, with EPS expected to rise by 13.92% annually and revenue by 11.11%.

Valuation Assessment

• P/E Ratio: At 32.83, ADSK’s P/E ratio is slightly above the S&P 500 average (27.48) but remains cheaper than 69.50% of its industry peers.
• Forward P/E: The forward P/E of 25.89 suggests a more reasonable valuation compared to both the industry and broader market.
• Enterprise Value/EBITDA: The ratio indicates a somewhat cheap valuation relative to competitors, with ADSK priced lower than 69.86% of its peers.

Profitability & Financial Health

• High Margins: ADSK maintains strong profitability, with a 15.94% net profit margin and a 22.18% operating margin, outperforming most industry peers.
• ROIC & ROE: The company generates a 19.89% return on invested capital and a 38.67% return on equity, reflecting efficient capital use.
• Debt Management: While the debt-to-equity ratio (0.76) is neutral, ADSK’s free cash flow comfortably covers its debt obligations.

For a deeper look, review the full fundamental analysis report for ADSK.

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

Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.