Autodesk, Inc. shares show a positive technical situation which suggests a continuation of the upward dynamic over the medium term.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company has a good ESG score relative to its sector, according to Refinitiv.
Strengths
● Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 49.79 times its estimated earnings per share for the ongoing year.
● Based on current prices, the company has particularly high valuation levels.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● The company is highly valued given the cash flows generated by its activity.
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Autodesk, Inc. is one of the world's leading producers of digital design and layout software for PC and the Internet. Net sales break down by family of products and services primarily as follows:
- design software programmes (92.9%): construction and civil engineering software (50.5% of net sales; software for modeling architectural plans, optimizing cartographic data, compiling digital drawings, topographic reliefs, etc.), platform technologies (28.6%; for automating design, management and sharing of documents, etc.), 2D and 3D mechanical design software (20.9%). Moreover, the group offers consulting, assistance, and training services;
- visualization and animation software programmes (5.4%): primarily intended for the media sector;
- other (1.8%).
Net sales break down by activity into subscription sales (93.1%), maintenance services (1%) and other (5.9%).
Net sales are distributed geographically as follows: the United States (36%), Americas (8.4%), Europe/Middle East/Africa (37.1%) and Asia/Pacific (18.5%).