It hasn't been a great morning session for Autodesk investors, who have watched their shares sink by -1.4% to a price of $219.1. Some of you might be wondering if it's time to buy the dip. If you are considering this, make sure to check the company's fundamentals first to determine if the shares are fairly valued at today's prices.
Autodesk Has Elevated P/B and P/E Ratios:
Autodesk, Inc. provides 3D design, engineering, and entertainment technology solutions worldwide. The company belongs to the Technology sector, which has an average price to earnings (P/E) ratio of 27.16 and an average price to book (P/B) ratio of 6.23. In contrast, Autodesk has a trailing 12 month P/E ratio of 54.8 and a P/B ratio of 38.88.
Autodesk's PEG ratio is 2.0, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.
A Pattern of Improving Cash Flows With a Flat Trend:
| 2018-03-22 | 2019-03-25 | 2020-03-19 | 2021-03-19 | 2022-03-14 | 2023-03-14 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $2,057 | $2,570 | $3,274 | $3,790 | $4,386 | $5,005 |
| Operating Margins | -20% | 1% | 10% | 17% | 14% | 20% |
| Net Margins | -28.0% | -3.0% | 7.0% | 32.0% | 11.0% | 16.0% |
| Net Income (MM) | -$567 | -$81 | $214 | $1,208 | $497 | $823 |
| Net Interest Expense (MM) | -$48 | -$18 | -$48 | -$82 | -$53 | -$43 |
| Depreciation & Amort. (MM) | -$108 | -$95 | -$127 | -$124 | -$148 | -$150 |
| Earnings Per Share | -$2.58 | -$0.37 | $0.96 | $5.44 | $2.23 | $3.78 |
| EPS Growth | n/a | 85.66% | 359.46% | 466.67% | -59.01% | 69.51% |
| Diluted Shares (MM) | 220 | 219 | 222 | 222 | 222 | 218 |
| Free Cash Flow (MM) | $52 | $444 | $1,468 | $1,533 | $1,598 | $2,117 |
| Capital Expenditures (MM) | -$51 | -$67 | -$53 | -$96 | -$67 | -$46 |
| Net Current Assets (MM) | -$2,492 | -$3,320 | -$3,659 | -$3,689 | -$4,994 | -$4,952 |
| Long Term Debt (MM) | $1,586 | $2,088 | $1,635 | $1,637 | $2,278 | $2,281 |
