Autodesk, Inc. (ADSK) Stock Guide

June 12, 2020
63

Before we start: if you're looking for ADSK stock price, you can quickly find it out by visiting Finny and typing "ADSK quote". If you're looking for a quick scoop on ADSK stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "ADSK". You'll get all this info in one place. Or you can just type "ADSK news" to get the latest stock news.

Looking to buy or sell Autodesk, Inc. (ADSK)? Interested in getting the full scoop on ADSK, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this ADSK stock guide, we'll address key questions about ADSK, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are ADSK earnings?
2. When is ADSK earnings date?
3. What is ADSK stock forecast (i.e., prediction)?
4. ADSK buy or sell? What is ADSK Finny Score?
5. What are the reasons to buy ADSK? Why should I buy ADSK stock?
6. What are the reasons to sell ADSK? Why should I sell ADSK stock?
7. What are ADSK key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are ADSK earnings?

ADSK trailing 12-month earnings per share (EPS) is $0.96.

2. When is ADSK earnings date?

ADSK earnings date is August 25, 2020.

Analyst Predictions

3. What is ADSK stock forecast (i.e., prediction)?

Based on ADSK analyst price targets, ADSK stock forecast is $204.76 (for a year from now). That means the average analyst price target for ADSK stock is $204.76. The prediction is based on 23 analyst estimates.

The low price target for ADSK is $120.00, while the high price target is $326.00.

ADSK analyst rating is Buy.

Analysis

4. ADSK buy or sell? What is ADSK Finny Score?

Our quantitative analysis shows 5 reasons to buy and 3 reasons to sell ADSK, resulting in Finny Score of 63.

5. What are the reasons to buy ADSK? Why should I buy ADSK stock?

Here are the reasons to buy ADSK stock:

  • High switching costs and network effects support Autodesk's wide moat. Engineers and designers are trained on Autodesk products in school, and employers don't want to incur the costs to retrain them on different software.
  • Cloud software delivery is a game-changing way to combat piracy--a potential boon for Autodesk. Currently, piracy in Asia-Pacific is very high, and even in developed countries, piracy rates are around 25%-30%.
  • A growing recurring revenue base makes it easier for Autodesk to predict and adapt to market forces and customer demand.
  • Autodesk’s business transition from licenses to cloud-based services is expected to benefit it in the long run by boosting its subscriptions and deferred revenues. Cloud subscriptions continue to see solid growth driven by BIM 360 and Fusion 360 products. Also, in order to boost customers to move from maintenance subscriptions to product subscription, management is offering discount, which is increasing subscription base.
  • We remain positive on Autodesk’s long-term growth prospects as it is well positioned to capitalize on the rapid adoption of computer-aided designing and manufacturing through its comprehensive product portfolio. We expect its broad product portfolio to generate new customers in both domestic and overseas markets. Moreover, improvement in construction and manufacturing activities in the emerging markets present further growth opportunities.
  • Autodesk’s aggressive acquisition strategy has played a pivotal part in developing its business over the last couple of years. The company acquired Graitec and made fourteen business combinations and technology acquisitions during fiscal 2014 for a total consideration of $176.7 million. During fiscal 2015, Autodesk acquired fifteen businesses including Shotgun, Within Technologies and Delcam for a sum of $578.6 million.
  • ADSK quarterly revenue growth was 22.00%, higher than the industry and sector average revenue growth (1.62% and 1.51%, respectively). See ADSK revenue growth chart.
  • ADSK profitability is improving. The YoY profit margin change was 24.42 percentage points. See ADSK profitability chart.
  • ADSK PEG ratio (P/E adjusted for growth) is 0.51, which is low compared to its industry peers’ PEG ratios. See ADSK PEG chart.
  • ADSK average analyst rating is Buy. See ADSK analyst rating chart.
  • ADSK cash to debt ratio is 0.72, higher than the average industry (0.16) and sector (0.17) cash to debt ratio. See ADSK cash to debt chart.

6. What are the reasons to sell ADSK? Why should I sell ADSK stock?

Let's look at the reasons to sell ADSK stock (i.e., the bear case):

  • Distributor consolidation poses a risk to Autodesk's sales channel.
  • Open-source CAD software, while not a threat at the moment, could erode the need for full-feature professional CAD software over the long term.
  • Operational issues in Japan highlight some macroeconomic concerns outside its core U.S. and European base of business.
  • Autodesk has significant product concentration. The company derives a significant portion of its revenues from a handful of products like AUTOCAD and AUTOCAD LT. Though the company is making efforts to diversify its revenues, decline in demand for any of these products in the foreseeable future will affect the company’s growth adversely.
  • Autodesk’s business will likely be impacted because of the investments in cloud-based infrastructure and marketing initiatives especially as it is taking a number of promotional initiatives to boost demand. This is a serious concern since the company is still not profitable. Additionally, uncertain macroeconomic conditions, especially in emerging nations, add to its woes.
  • ADSK average analyst price target ($204.76) is below its current price ($219.10). See ADSK price target chart.
  • ADSK short interest (days to cover the shorts) ratio is 1.65. The stock garners more short interest than the average industry, sector or S&P 500 stock. See ADSK short interest ratio chart.
  • ADSK Enterprise Value/EBITDA multiple is 88.00, which is high compared to its industry peers’ Enterprise Value/EBITDA ratios. See ADSK Enterprise Value/EBITDA chart.

Key Stats

7. What are ADSK key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for ADSK:

Metrics ADSK
Price $240.11
Average Price Target / Upside $204.76 / -14.72%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Software - Application
Sector Technology
Number of Employees 8,800
Market Cap $38.99B
Forward P/E Ratio 30.72
Price/Book Ratio 11.91
Revenue (TTM) $3.27B
YoY Quarterly Revenue Growth 22.00%
Profit Margin 6.55%

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