AUTODESK INC (NASDAQ:ADSK) Presents an Affordable Growth Opportunity

Investors looking for expansion possibilities at fair prices often use filtering methods that find firms with good development prospects that are not too costly. The "Affordable Growth" method focuses on stocks showing good growth paths while keeping fair prices, good earnings, and acceptable financial condition. This system tries to mix the search for development with careful price evaluation, possibly lowering danger while still finding firms with significant upward possibility.

Growth Profile

AUTODESK INC (NASDAQ:ADSK) shows interesting growth features that match well with affordable growth standards. The firm's past results display steady enlargement, and future estimates point to continued speed. For investors focused on development, these measurements indicate the company is keeping its forward path without displaying signals of standing still.

• Earnings Per Share has increased by 14.55% over the past year
• Average yearly EPS increase of 24.81% over recent years
• Revenue grew by 13.78% in the last year
• Estimated EPS increase of 16.72% per year going forward
• Anticipated revenue growth of 11.95% in future years

The steadiness between past results and future estimates is especially significant, as it indicates the firm's development plan is lasting instead of temporary. This even development outline lessens the danger of putting money into firms that might have reached their top development phase.

Valuation Assessment

While AUTODESK's price measurements show the stock is not inexpensive in simple terms, the situation presents a more detailed view. The company trades at levels that, when thinking about its development possibilities and field placement, could represent fair price for investors searching for good quality development firms.

• P/E ratio of 33.23, a bit higher than S&P 500 average of 27.91
• Forward P/E of 26.93, nearer to market averages
• Enterprise Value to EBITDA ratio lower priced than 68% of field competitors
• Price/Free Cash Flow ratio more appealing than 67% of software firms
• PEG ratio shows suitable price when development is considered

The price evaluation becomes more interesting when including AUTODESK's outstanding earnings and the higher price usually given to software companies with good market positions. The firm's price scores mirror this mix between simple cost and relative value inside its competitive environment.

Profitability and Financial Health

Beyond development and price, AUTODESK displays force in earnings measurements that back its affordable growth idea. The firm's capability to change income into profits at field-topping rates gives basic support for its price multiples.

Earnings highlights contain Return On Assets of 9.61%, doing better than 85% of field competitors, and Return On Equity of 38.42%, beating 93% of software companies. The company keeps notable edges with Profit Margin at 15.79%, Operating Margin at 22.94%, and Gross Margin getting to 90.61%. These effectiveness measurements display AUTODESK's ability to make money from its software products successfully.

Financial condition presents a varied but workable image. The company displays solid payment ability with an Altman-Z score of 5.65 showing low failure danger and a debt-to-FCF ratio of 1.34 indicating good debt clearing ability. However, cash measurements display current and quick ratios of 0.76, under field averages, though this worry is lessened by good cash flow production and earnings.

Investment Considerations

AUTODESK's mix of good development, fair price relative to its quality, and outstanding earnings makes it an option worth thinking about for affordable growth plans. The company's place in the software field, with products like AutoCAD, Revit, and Maya, gives lasting competitive benefits through high change costs and repeating income models.

The mix between these basic parts is vital for the affordable growth method. Firms displaying good development but trading at very high prices often carry increased danger, while those with fair prices but weak development might lack enough upward potential. AUTODESK seems to sit in the middle area where development possibilities are large but not valued as ideal.

For investors wanting to do their own basic study, a full fundamental report gives deeper looks into AUTODESK's financial position.

Those searching for similar investment chances can review more options through our Affordable Growth Stock Screen, which finds firms meeting similar standards for development at fair prices.

Disclaimer: This study is based on basic information and scores given by ChartMill.com and should not be taken as investment guidance. Investors should do their own study and think about their personal financial situation before making investment choices. Past results do not ensure future outcomes, and all investments carry danger including possible loss of original funds.