Understanding Autodesk's Position In Software Industry Compared To Competitors

In today's fast-paced and highly competitive business world, it is crucial for investors and industry followers to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating Autodesk ADSK in relation to its major competitors in the Software industry. By closely examining key financial metrics, market standing, and growth prospects, our objective 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 57.05 34.91 9.80 17.93% $0.37 $1.29 10.47%
Adobe Inc 50.77 16.54 14.19 9.18% $2.06 $4.41 3.23%
Salesforce Inc 101.62 4.45 7.75 2.11% $2.42 $6.57 11.27%
SAP SE 75.99 3.79 5.09 3.01% $2.37 $5.64 3.57%
Intuit Inc 68.02 10.23 11.90 1.41% $0.53 $2.22 14.67%
Synopsys Inc 70.70 13.84 14.87 5.77% $0.48 $1.27 24.51%
Cadence Design Systems Inc 78.51 24.08 19.18 8.45% $0.35 $0.91 13.36%
Workday Inc 1137.08 10.83 10.25 1.76% $0.23 $1.42 16.67%
Roper Technologies Inc 46.78 3.39 9.66 2.06% $0.68 $1.1 15.78%
Palantir Technologies Inc 251.29 12 18.49 2.33% $0.09 $0.45 16.8%
Ansys Inc 54.82 5.26 12.27 1.12% $0.11 $0.39 -2.9%
Splunk Inc 220 128.64 6.33 121.15% $0.14 $0.86 14.8%
Zoom Video Communications Inc 94.61 2.95 4.88 1.96% $0.2 $0.87 3.16%
PTC Inc 83.10 7.62 9.74 1.73% $0.16 $0.43 7.62%
Tyler Technologies Inc 111.48 6.09 9.14 1.67% $0.11 $0.23 4.54%
Dynatrace Inc 95.22 9.02 12.57 2.04% $0.05 $0.29 25.91%
Bentley Systems Inc 93.38 21.98 14.15 7.94% $0.1 $0.24 14.27%
AppLovin Corp 153.57 13.18 5.23 8.25% $0.31 $0.6 21.2%
Manhattan Associates Inc 82.95 64.41 15.50 25.97% $0.05 $0.13 20.36%
Average 159.44 19.91 11.18 11.55% $0.58 $1.56 12.71%

By analyzing Autodesk, we can infer the following trends:

  • The stock's Price to Earnings ratio of 57.05 is lower than the industry average by 0.36x, suggesting potential value in the eyes of market participants.

  • It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 34.91 which exceeds the industry average by 1.75x.

  • The Price to Sales ratio is 9.8, which is 0.88x the industry average. This suggests a possible undervaluation based on sales performance.

  • With a Return on Equity (ROE) of 17.93% that is 6.38% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

  • Compared to its industry, the company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $370 Million, which is 0.64x below the industry average, potentially indicating lower profitability or financial challenges.

  • The company has lower gross profit of $1.29 Billion, which indicates 0.83x 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 10.47% compared to the industry average of 12.71%, which indicates a challenging sales environment.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is a financial metric that helps determine the level of financial risk associated with a company's capital structure.

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.

By analyzing Autodesk in relation to its top 4 peers based on the Debt-to-Equity ratio, the following insights can be derived:

  • In the context of the debt-to-equity ratio, Autodesk holds a middle position among its top 4 peers.

  • This indicates a moderate level of debt relative to its equity with a debt-to-equity ratio of 1.79, which implies a relatively balanced financial structure with a reasonable debt-equity mix.

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 at a significant rate.

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

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