10Y annualized return is
excellent
at 17.3% per year
ADSK has met or exceeded earnings expectations in
the majority of
recent quarters (8/10)
High Gross Profit Margin
Strong Return on Equity
Healthy Net Profit Margin
Moderate Debt Levels
Strong Cash Position
Strong Fourth Quarter and Fiscal Year Results
Go-to-Market Optimization
Leadership in Industry Clouds and AI
Strong Guidance for Fiscal 2026
Investment in High-Growth Areas
High P/E Ratio
High Price-to-Sales Ratio
Operating Profit Margin
Low Current and Quick Ratios
Interest Coverage Ratio
Slow New Business Growth
Uncertainty in Macro Environment
Overall, Autodesk demonstrates strong business quality through its robust financial performance and strategic positioning in the market. However, challenges in new business growth and macroeconomic uncertainties pose risks. Future prospects appear positive with strong guidance and investments in high-growth areas, although external factors may impact outcomes.
Analysis Date: February 27, 2025
Last Updated: March 11, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Autodesk, Inc. is a software company that helps people create and design in 3D. They provide tools that architects, engineers, and designers use to plan buildings, roads, and products. Some of their popular software includes AutoCAD for drafting designs and Fusion 360 for product development. Autodesk also offers tools for the entertainment industry, helping creators make movies and animations.
Streams of revenue
Geographic Distribution
Core Products
No core products data available
Business Type
Competitive Advantages
Key Business Risks
Latest News
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ADSK shows mixed signals. AI investments offer promise, but restructuring-related headwinds suggest a hold stance is prudent for now.
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$155.07
Current Market Price: $243.23
IV/P Ratio: 0.64x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-56.99999999999999%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for ADSK
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (47.47)
P/B ratio ≤ 1.5 (20.14)
Current ratio ≥ 2.0 (0.68x)
Long-term debt < Net current assets (-1.32x)
Margin of safety (-56.99999999999999%)
ADSK does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
45.06%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
90.57%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
18.14%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
ADSK has a return on equity (ROE) of 45.06%, indicating excellent management efficiency in generating profits from shareholders' equity.
A net profit margin of 18.14% suggests that ADSK effectively converts a significant portion of revenue into profit.
The operating profit margin of 22.08% is good but indicates that operational efficiency could still be optimized further.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.98x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2025
Current Ratio
Current assets divided by current liabilities
0.68x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2025
A debt-to-equity ratio of 0.98 indicates a balanced approach to leveraging, suggesting that the company is not overly reliant on debt for financing.
With cash per share at approximately $8.77, ADSK maintains a healthy liquidity position to meet short-term obligations.
Current and quick ratios at 0.68 indicate potential liquidity issues, as they are below the ideal benchmark of 1.0, raising concerns about the ability to cover short-term liabilities.
An interest coverage ratio of 0.0 is alarming, indicating that the company is unable to cover its interest expenses, which could pose significant financial risk.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Autodesk reported strong results with billings and revenue exceeding expectations, indicating strong demand and operational efficiency. The growth was broad-based across products and regions, showcasing the company's resilience.
The company is entering an optimization phase in its go-to-market model, aiming to enhance customer satisfaction and productivity through streamlined processes and increased self-service capabilities. This positions Autodesk to better meet evolving customer needs.
Autodesk is leading in the convergence of design and make in the cloud, with significant investments in AI and industry-specific solutions that enhance customer value and expand their ecosystem.
New business growth has been slow due to macroeconomic uncertainties and changes in the company's operational model, which could impact future revenue growth.
The guidance for constant currency billings growth of 17% to 19% and revenue growth of 8% to 9% indicates a robust outlook based on the company's ongoing optimization and strategic initiatives.
Autodesk is reallocating resources to focus on high-potential strategic priorities such as AI and industry clouds, which are expected to drive future growth and profitability.
Ongoing macroeconomic uncertainties could impact customer investment decisions and new business growth, posing risks to achieving growth targets in the near term.