ADSK - Embedded Expectations Analysis - 2021 10 29
Autodesk, Inc. (ADSK:USA) currently trades well above corporate averages relative to UAFRS-based (Uniform) earnings, with a 61.4x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about Fusion 360 subscriber growth, the execution of their SaaS transition, and their EBA business.Specifically, management may lack confidence in their ability to sustain Fusion 360 subscriber growth, successfully execute their transition to a SaaS and subscription-based model, and offset declining demand for AutoCAD LT with newer products. Similarly, they may be overstating the potential of Flex, Autodesk Build, and Fusion 360. Furthermore, they may have concerns about the performance of their Enterprise Business Agreement (EBA) business, specifically with international customers. Moreover, they may lack confidence in their ability to change the nature of their relationships with customers from software vendor to strategic partner.
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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