In-Depth Analysis: Autodesk Versus Competitors In Software Industry

In the ever-changing and fiercely competitive business landscape, conducting thorough company analysis is crucial for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Autodesk ADSK and its primary competitors in the Software industry. By closely examining key financial metrics, market position, and growth prospects, our aim is to provide valuable insights for investors and shed light on company's performance within 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 52.90 37.79 8.88 21.11% $0.29 $1.22 8.73%
Adobe Inc 49.45 15.87 13.41 9.17% $1.99 $4.31 10.31%
Salesforce Inc 129.28 3.47 6.19 2.19% $2.42 $6.49 11.44%
SAP SE 83.45 3.49 4.62 8.41% $1.8 $5.41 4.84%
Intuit Inc 64.32 8.79 10.67 0.51% $0.26 $2.0 12.34%
Synopsys Inc 74.32 12.63 13.92 5.7% $0.38 $1.18 19.2%
Cadence Design Systems Inc 77.60 23.64 18.20 7.56% $0.34 $0.88 13.88%
Roper Technologies Inc 45.93 3.20 9.29 2.21% $0.68 $1.07 16.81%
Ansys Inc 50.81 5.38 12.26 1.43% $0.13 $0.43 4.8%
Zoom Video Communications Inc 137.91 2.79 4.40 2.69% $0.2 $0.87 3.57%
PTC Inc 55.63 6.56 8.29 2.4% $0.15 $0.43 17.27%
Tyler Technologies Inc 101.66 5.96 8.78 1.8% $0.1 $0.22 7.59%
Bentley Systems Inc 109.61 24.64 15.27 7.75% $0.07 $0.23 10.61%
Dynatrace Inc 98.33 8.29 11.54 2.31% $0.05 $0.27 24.55%
AppLovin Corp 805.60 9.23 5.20 4.69% $0.27 $0.49 -3.36%
Manhattan Associates Inc 90.69 75.75 15.53 22.54% $0.05 $0.12 20.37%
Average 131.64 13.98 10.5 5.42% $0.59 $1.63 11.61%

Through a meticulous analysis of Autodesk, we can observe the following trends:

  • A Price to Earnings ratio of 52.9 significantly below the industry average by 0.4x suggests undervaluation. This can make the stock appealing for those seeking growth.

  • The elevated Price to Book ratio of 37.79 relative to the industry average by 2.7x suggests company might be overvalued based on its book value.

  • With a relatively low Price to Sales ratio of 8.88, which is 0.85x the industry average, the stock might be considered undervalued based on sales performance.

  • The Return on Equity (ROE) of 21.11% is 15.69% above the industry average, highlighting efficient use of equity to generate profits.

  • The company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $290 Million, which is 0.49x below the industry average. This potentially indicates lower profitability or financial challenges.

  • The gross profit of $1.22 Billion is 0.75x below that of its industry, suggesting potential lower revenue after accounting for production costs.

  • With a revenue growth of 8.73%, which is much lower than the industry average of 11.61%, the company is experiencing a notable slowdown in sales expansion.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage of a company.

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 assessing Autodesk against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:

  • In terms of the debt-to-equity ratio, Autodesk is positioned in the middle among its top 4 peers.

  • This suggests a relatively balanced financial structure, where the company maintains a moderate level of debt while also utilizing equity financing with a debt-to-equity ratio of 2.21.

Key Takeaways

Autodesk has a low PE ratio compared to its peers in the software industry, indicating that it may be undervalued. The high PB ratio suggests that investors are willing to pay a premium for the company's assets. The low PS ratio indicates that Autodesk's sales are relatively low compared to its market capitalization. The high ROE suggests that the company is generating strong returns on shareholder equity. The low EBITDA and gross profit indicate that Autodesk may have lower profitability compared to its peers. The low revenue growth suggests that the company's sales are not growing as quickly as its industry peers.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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