Autodesk Inc (ADSK, Financial), a prominent player in the software industry, has demonstrated a remarkable stock performance recently. With a current market capitalization of $58.13 billion and a stock price of $269.73, Autodesk has seen a significant uptick. Over the past week alone, the stock has gained 3.33%, and over the last three months, it has surged by an impressive 23.85%. Currently, Autodesk is evaluated as "Fairly Valued" according to the GF Value, which stands at $257.77, indicating a slight premium compared to its current market price.
Introduction to Autodesk Inc
Founded in 1982, Autodesk Inc specializes in software solutions for various sectors including architecture, engineering, construction, and media and entertainment. The company's software products are crucial for design, modeling, and rendering applications, serving over 4 million paid subscribers across 180 countries. This broad reach underscores Autodesk's pivotal role in its industry segments.
Assessing Autodesk's Profitability
Autodesk's financial health is robust, with a Profitability Rank of 7/10. The company boasts an Operating Margin of 21.44%, which is superior to 90.07% of its peers. Additionally, its Return on Equity (ROE) is an impressive 65.58%, and its Return on Assets (ROA) stands at 10.57%, both metrics underscoring its efficiency in utilizing shareholder equity and asset base respectively. Autodesk's Return on Invested Capital (ROIC) is also commendable at 9.75%, reflecting its adeptness at turning capital into profits.
Growth Trajectory of Autodesk
Autodesk's growth metrics are equally impressive, with a Growth Rank of 10/10. The company has maintained a 3-Year Revenue Growth Rate per Share of 14.20% and a 5-Year Rate of 16.50%. Looking ahead, Autodesk's Total Revenue Growth Rate is estimated at 11.10% for the next 3 to 5 years. In terms of earnings, the 3-Year EPS without NRI Growth Rate stands at 23.30%, and the 5-Year Rate at 44.60%, with future estimates predicting a growth rate of 11.13%.
Notable Shareholders
Autodesk's stock is held by several notable investors. Baillie Gifford (Trades, Portfolio) owns 1,208,356 shares, representing 0.56% of the company, while Steven Cohen (Trades, Portfolio) holds 843,040 shares, or 0.39%. PRIMECAP Management (Trades, Portfolio) holds a stake of 0.3% with 655,900 shares. These investments reflect confidence from significant market players in Autodesk's business model and future prospects.
Competitive Landscape
Autodesk operates in a competitive environment with key players like The Trade Desk Inc (TTD, Financial) with a market cap of $51.25 billion, Roper Technologies Inc (ROP, Financial) at $59.4 billion, and Paychex Inc (PAYX, Financial) valued at $46.95 billion. These companies, while varying in their specific offerings, represent the competitive pressures in the broader software industry in which Autodesk operates.
Conclusion
Autodesk Inc stands out as a robust entity in the software industry, backed by strong profitability, impressive growth metrics, and strategic shareholder confidence. The company's recent stock performance and its competitive positioning suggest a stable and promising investment outlook. As Autodesk continues to innovate and expand its market reach, it remains a compelling choice for investors looking for growth and stability in the technology sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
