Autodesk (ADSK) Likely Oversold on Friday

Autodesk logged a -12.95% change Friday, and is now trading at a price of $192.53 per share. The S&P 500 index moved -1.06% and the Nasdaq posted a -1.6% change.

Autodesk shares moved -12.33% over the last 52 weeks, with a high of $235.01 and a low of $163.2. During this time, the stock lagged the S&P 500 index by -3.1%. As of January 2022, the company's 50-day average price is $204.5. Autodesk, Inc. is an American multinational software corporation that makes software products and services for the architecture, engineering, construction, manufacturing, media, education, and entertainment industries. The large-cap Technology company is based in San Rafael, CA.

Exceptional EPS Growth with Reasonable Leverage Levels:

2019-01-31 2020-01-31 2021-01-31 2022-01-31
Revenue (MM) $2,570 $3,274 $3,790 $4,386
Revenue Growth n/a 27.41% 15.76% 15.72%
Operating Margins -0.97% 10.48% 16.6% 14.08%
Operating Margins Growth n/a 1180.41% 58.4% -15.18%
Net Margins -3.14% 6.55% 31.88% 11.33%
Net Margins Growth n/a 308.6% 386.72% -64.46%
Earnings Per Share -$0.37 $0.98 $5.5 $2.28
EPS Growth n/a 364.86% 461.22% -58.55%
Free Cash Flow (MM) $310 $1,362 $1,341 $1,465
FCF Growth n/a 339.18% -1.51% 9.21%
Capital Expenditures (MM) $67 $53 $96 $66
Net Debt / EBITDA n/a 1.75 -0.07 2.04

Autodesk Is Overpriced:

Compared to the Technology sector's average of 27.16, Autodesk has a trailing twelve month P/E ratio of 78.26.

Autodesk's P/B ratio is 47.65 compared to its sector average of 6.23. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 1537.16% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 5-year average EPS * book value per share) = √(22.5 * 1.16 * 5.3) = $11.76

Autodesk Is the Subject of Mixed Market Indicators:

25 analysts are following Autodesk and have set target prices ranging from $180.0 to $325.0 per share. On average, they have given the company a rating of buy. At the current price of $192.53, ADSK is trading -17.95% away from its average analyst target price of $234.66 per share, implying an analyst consensus of some upside potential for the stock.

The company has a very low short interest since 0.0113% of the company's shares are tied to short positions. Institutions own 94% of Autodesk's shares, while the insider ownership rate stands at 0%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.