ADSK - Embedded Expectations Analysis - 2021 07 19
Autodesk, Inc. (ADSK:USA) currently trades well above corporate averages relative to UAFRS-based (Uniform) earnings, with a 63.7x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about their acquisition integration, construction industry digitization, and value creation for customers.Specifically, management may lack confidence in their ability to integrate the Upchain and Innovyze acquisitions, capitalize on the digitization of the construction industry, and meet long-term growth guidance. In addition, they may be exaggerating the potential of their new products for construction teams, the capabilities of new Inventor 2022 features, and the quality of the outcomes for customers using their products. Furthermore, management may lack confidence in their ability to sustain license compliance billings growth, emerge from the pandemic stronger, and generate more value for customers through their platforms and systems. Finally, they may be overstating the connectivity of their app ecosystem, the potential of Vault's new mobile app and web extensions, and the extent of the recovery in the construction 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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