ADSK - Embedded Expectations Analysis - 2020 10 16
Autodesk, Inc. (ADSK:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 47.3x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about their subscription net additions, BIM 360 Design, and Fusion modelSpecifically, management may have concerns about the sustainability of subscription net additions, the potential of their transition to a named user model, and the lack of incremental investment in Revit. In addition, they may be overstating the strength of their pipeline entering H2 2020, the potential of their Architecture, Engineering & Construction (AEC) products, and the capabilities of their BIM 360 Design. Furthermore, they may be concerned about the capabilities of their Fusion model, expected constraints of AutoCad, and the potential for continued weakness in multi-year subscriptions. Additionally, management may have concerns about the potential of their Pype acquisition, and they may lack confidence in their ability to sustain new Fusion users at the low end of the market
Autodesk is a design software and services company. The company is engaged in 3D design, engineering and entertainment software and services. The company's product offerings include: AutoCAD, which is a customizable and extensible CAD application for design, drafting, detailing, and visualization; AutoCAD Civil 3D, which provides surveying, design, analysis, and documentation solution for civil engineering; CAM Solutions, which is a computer-aided manufacturing software that provides solutions for computer numeric control machining, inspection, and modeling for manufacturing; and Inventor, which provides tools for 3D mechanical design, simulation, analysis, tooling, visualization, and documentation.
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