Autodesk Inc (ADSK, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $294.50, Autodesk Inc has witnessed a daily gain of 0.8%, marked against a three-month change of 13.5%. A thorough analysis, underlined by the GF Score, suggests that Autodesk Inc is well-positioned for substantial growth in the near future.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 7/10
- Profitability rank: 7/10
- Growth rank: 10/10
- GF Value rank: 7/10
- Momentum rank: 10/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. Autodesk Inc has been assigned a GF Score of 92 out of 100, which signals the highest outperformance potential.
Company Overview: Autodesk Inc
Founded in 1982, Autodesk Inc 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. With a market capitalization of $63.01 billion and sales amounting to $6.35 billion, Autodesk Inc boasts an operating margin of 22.18%, reflecting its efficient operational management.
Financial Strength Breakdown
According to the Financial Strength rating, Autodesk Inc's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. The Interest Coverage ratio for Autodesk Inc stands impressively at 704, underscoring its strong capability to cover its interest obligations. This robust financial position resonates with the wisdom of legendary investor Benjamin Graham, who favored companies with an interest coverage ratio of at least 5. With an Altman Z-Score of 5.33, Autodesk Inc exhibits a strong defense against financial distress, highlighting its robust financial stability. With a favorable Debt-to-Revenue ratio of 0.4, Autodesk Inc's strategic handling of debt solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank shows Autodesk Inc's impressive standing among its peers in generating profit. Autodesk Inc's Operating Margin has increased by 112.84% over the past five years, as shown by the following data: 2021: 16.60; 2022: 14.09; 2023: 19.76; 2024: 20.52; 2025: 22.33. This upward trend in operating margin underscores the company's ability to enhance its profitability through effective cost management and revenue growth.
Growth Rank Breakdown
Ranked highly in Growth, Autodesk Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 12.7%, which outperforms better than 63.89% of 2,517 companies in the Software industry. Moreover, Autodesk Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 27.4, and the rate over the past five years is 26.5. This trend accentuates the company's continued capability to drive growth.
Conclusion: Autodesk Inc's Path to Outperformance
Autodesk Inc's financial strength, profitability, and growth metrics, as highlighted by its impressive GF Score, underscore the firm's unparalleled position for potential outperformance. The company's strategic initiatives, robust financial health, and commitment to innovation position it well for future growth. For investors seeking companies with strong financial metrics and growth potential, Autodesk Inc presents a compelling case. GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen.
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.
