20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine." A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
In today's rapidly changing and highly competitive business world, it is imperative for investors and industry observers to carefully assess companies before making investment choices. In this article, we will undertake a comprehensive industry comparison, evaluating Autodesk (NASDAQ:ADSK) vis-à-vis its key competitors in the Software industry. Through a detailed analysis of important financial indicators, market standing, and growth potential, our goal is to provide valuable insights and highlight company's performance in the industry.
Autodesk Background
Founded in 1982, Autodesk is an application software company that serves industries in architecture, engineering, and construction; product design and manufacturing; and media and entertainment. Autodesk software enables design, modeling, and rendering needs of these industries. The company has over 4 million paid subscribers across 180 countries.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Autodesk Inc | 53.96 | 38.55 | 9.05 | 21.11% | $0.29 | $1.22 | 8.73% |
| Adobe Inc | 54.95 | 17.63 | 14.90 | 9.17% | $1.99 | $4.31 | 10.31% |
| Salesforce Inc | 140.20 | 3.76 | 6.72 | 2.19% | $2.42 | $6.49 | 11.44% |
| SAP SE | 76.14 | 3.79 | 5.10 | 3.01% | $2.37 | $5.64 | 3.57% |
| Intuit Inc | 66.77 | 9.12 | 11.07 | 0.51% | $0.26 | $2.0 | 12.34% |
| Synopsys Inc | 81.14 | 13.79 | 15.19 | 5.7% | $0.38 | $1.18 | 19.2% |
| Cadence Design Systems Inc | 77.04 | 23.63 | 18.82 | 8.45% | $0.35 | $0.91 | 13.36% |
| Roper Technologies Inc | 45.64 | 3.30 | 9.42 | 2.06% | $0.68 | $1.1 | 15.78% |
| Palantir Technologies Inc | 282.86 | 13.51 | 20.81 | 2.33% | $0.09 | $0.45 | 16.8% |
| Ansys Inc | 54.17 | 5.20 | 12.12 | 1.12% | $0.11 | $0.39 | -2.9% |
| Zoom Video Communications Inc | 140.30 | 2.83 | 4.48 | 2.69% | $0.2 | $0.87 | 3.57% |
| PTC Inc | 75.75 | 6.95 | 8.88 | 1.73% | $0.16 | $0.43 | 7.62% |
| Tyler Technologies Inc | 111.09 | 6.07 | 9.11 | 1.67% | $0.11 | $0.23 | 4.54% |
| Bentley Systems Inc | 95.71 | 22.53 | 14.50 | 7.94% | $0.1 | $0.24 | 14.27% |
| Dynatrace Inc | 90.10 | 8.54 | 11.90 | 2.04% | $0.05 | $0.29 | 25.91% |
| Manhattan Associates Inc | 84.25 | 65.42 | 15.75 | 25.97% | $0.05 | $0.13 | 20.36% |
| AppLovin Corp | 138.57 | 11.89 | 4.72 | 8.25% | $0.31 | $0.6 | 21.2% |
| NICE Ltd | 39.42 | 3.82 | 5.55 | 2.89% | $0.16 | $0.41 | 8.4% |
| Average | 97.3 | 13.05 | 11.12 | 5.16% | $0.58 | $1.51 | 12.1% |
After a detailed analysis of Autodesk, the following trends become apparent:
A Price to Earnings ratio of 53.96 significantly below the industry average by 0.55x suggests undervaluation. This can make the stock appealing for those seeking growth.
With a Price to Book ratio of 38.55, which is 2.95x the industry average, Autodesk might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.
With a relatively low Price to Sales ratio of 9.05, which is 0.81x the industry average, the stock might be considered undervalued based on sales performance.
The company has a higher Return on Equity (ROE) of 21.11%, which is 15.95% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $290 Million is 0.5x below the industry average, suggesting potential lower profitability or financial challenges.
The company has lower gross profit of $1.22 Billion, which indicates 0.81x below the industry average. This potentially indicates lower revenue after accounting for production costs.
The company is witnessing a substantial decline in revenue growth, with a rate of 8.73% compared to the industry average of 12.1%, which indicates a challenging sales environment.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When evaluating Autodesk alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:
Autodesk holds a middle position in terms of the debt-to-equity ratio compared to its top 4 peers.
This indicates a balanced financial structure with a moderate level of debt and an appropriate reliance on equity financing with a debt-to-equity ratio of 2.21.
Key Takeaways
Autodesk's low PE ratio suggests that the company's stock is undervalued compared to its peers in the software industry. The high PB ratio indicates that investors are willing to pay a premium for Autodesk's assets. The low PS ratio suggests that the company's sales are relatively low compared to its market capitalization. On the other hand, Autodesk's high ROE, low EBITDA, low gross profit, and low revenue growth indicate that the company may be facing challenges in generating profits and expanding its business compared to its industry peers.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine." A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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