ADSK - Embedded Expectations Analysis - 2021 05 07
Autodesk, Inc. (ADSK:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 68.5x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about direct business revenue growth, product subscription renewal rates, and new bookingsSpecifically, management may lack confidence in their ability to sustain direct business revenue growth, maintain healthy product subscription renewal rates, and expand the Innovyze water business. Also, they may have concerns about the progress of the transition of remaining multi-user subscribers to named users, digitization demand in the media and entertainment business, and declines in new bookings. Furthermore, they may be overstating the resiliency of their subscription business model, the progress on their vertical-specific strategic priorities, and the potential of their Autodesk Build product. Finally, management may lack confidence in their ability to capitalize on the backlog of construction and infrastructure projects and acquire companies to support vertical specialization
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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