Autodesk (ADSK) AI Stock Analysis

• Market Cap: $59.64B
• Dividend Yield: N/A
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): 54.6
• Beta (1Y): 1.25
• Revenue Growth: 12.35%
• EPS Growth: 22.28%
• Country: US
• Employees: 15,300
• Sector: Technology
• Sector Strength: 68
• Industry: Software - Application
• EPS (TTM): 5.12
• Shares Outstanding: 213,000,000
• 10 Day Avg. Volume: 1,156,012
• 30 Day Avg. Volume: 1,516,129
• PEG Ratio: 2.45
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 12.29
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $323.47
• Price Target Upside: 15.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

Autodesk's overall score reflects its robust financial performance and strategic board appointments, offset by technical weaknesses and high valuation concerns. The company's strong profitability and cash flow are significant strengths, while macroeconomic uncertainties and valuation present notable risks.

Positive Factors

Board Strengthening

The appointments of Jeff Epstein and Christie Simons to Autodesk's board of directors are part of the cooperation agreement, which is expected to strengthen the board.

Collaboration and Governance

The cooperation letter agreement between Autodesk and Starboard has the potential for collaboration and ability to execute towards targets, which should help alleviate a few overhangs on the stock.

Negative Factors

Macroeconomic Conditions

Ongoing macroeconomic uncertainty currently overshadows company-specific drivers, creating a transition year with greater weight on catalysts.

Trade War Risk

ADSK has over 50% international revenue exposure, which suggests higher risk in a hypothetical trade war escalation scenario.

Autodesk Business Overview & Revenue Model

Company Description

Autodesk, Inc. is a global leader in 3D design, engineering, and entertainment software. It serves a diverse range of industries including architecture, engineering, construction, manufacturing, and media and entertainment. Autodesk's core products include AutoCAD, Revit, Maya, and Fusion 360, among others, which are essential tools for professionals in designing, visualizing, and simulating ideas and projects.

How the Company Makes Money

Autodesk primarily makes money through the sale of software subscriptions and licenses. The company has transitioned from a traditional perpetual license model to a subscription-based business model, which provides recurring revenue streams. Customers pay for monthly, annual, or multi-year subscriptions to access Autodesk's suite of software products. Additionally, Autodesk generates revenue from cloud-based services, consulting, and support services. The company also benefits from partnerships with educational institutions, which help promote its software among future professionals. Key revenue streams include the Architecture, Engineering, and Construction (AEC) segment, the Manufacturing segment, and the Media and Entertainment segment. Autodesk's strategic acquisitions and investments in emerging technologies further enhance its earnings potential.

Autodesk Financial Statement Overview

Summary

Autodesk exhibits strong financial health with high profitability and effective cash flow generation. The company maintains a good balance between growth and stability, though it could benefit from improving its equity position.

Income Statement

Autodesk shows strong profitability with a gross profit margin of 90.6% and a net profit margin of 18.1% in the latest annual report. The revenue growth rate is 12.7%, indicating a positive growth trajectory. Both EBIT and EBITDA margins are solid at 22.1% and 25.0% respectively, reflecting effective cost management and operational efficiency.

Balance Sheet

The company's balance sheet is stable, with a moderate debt-to-equity ratio of 0.98, indicating manageable leverage. The return on equity (ROE) is high at 42.4%, showcasing strong shareholder returns. However, the equity ratio is relatively low at 24.2%, which may suggest higher reliance on liabilities.

Cash Flow

Cash flow generation is robust, with a free cash flow growth rate of 22.2%, demonstrating strong operational cash flow conversion. The operating cash flow to net income ratio is 1.45, indicating effective cash management. The free cash flow to net income ratio is 1.41, reflecting strong cash flow relative to earnings.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
6.13B	5.44B	5.00B	4.39B	3.79B
	Gross Profit
5.55B	4.98B	4.53B	3.97B	3.45B
	EBIT
1.35B	1.13B	989.00M	617.60M	629.10M
	EBITDA
1.53B	1.22B	1.10B	765.70M	720.80M
	Net Income Common Stockholders
1.11B	906.00M	823.00M	497.00M	1.21B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.89B	2.25B	2.07B	1.76B	1.86B
	Total Assets
10.83B	9.91B	9.44B	8.61B	7.28B
	Total Debt
2.56B	2.63B	2.67B	3.06B	2.10B
	Net Debt
960.00M	734.00M	719.00M	1.53B	332.40M
	Total Liabilities
8.21B	8.06B	8.29B	7.76B	6.31B
	Stockholders Equity
2.62B	1.85B	1.15B	849.10M	965.50M
Cash Flow		Free Cash Flow
1.57B	1.28B	2.02B	1.46B	1.34B
	Operating Cash Flow
1.61B	1.31B	2.07B	1.53B	1.44B
	Investing Cash Flow
-903.00M	-502.00M	-143.00M	-1.59B	-403.90M
	Financing Cash Flow
-987.00M	-852.00M	-1.49B	-168.60M	-1.05B

Autodesk Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 279.99
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADSK, the sentiment is Positive. The current price of 279.99 is above the 20-day moving average (MA) of 262.31, above the 50-day MA of 264.84, and above the 200-day MA of 276.91, indicating a bullish trend. The MACD of 3.04 indicates Negative momentum. The RSI at 62.36 is Neutral, neither overbought nor oversold. The STOCH value of 91.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADSK.

Autodesk Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CDNS	80 Outperform	$84.14B	78.04	25.92%	―	19.55%	2.35%
BSY	79 Outperform	$13.22B	60.32	24.39%	0.57%	10.15%	-28.62%
ANSS	78 Outperform	$28.90B	48.81	10.23%	―	15.98%	35.52%
ADSK	73 Outperform	$59.64B	54.64	49.69%	―	12.35%	22.28%
MANH	71 Outperform	$11.14B	52.28	89.60%	―	9.18%	14.35%
Sector *	60 Neutral	$10.94B	10.58	-7.08%	2.98%	7.52%	-12.04%

Autodesk Corporate Events

Autodesk Announces New Board Members After Agreement

On April 23, 2025, Autodesk entered into a cooperation agreement with Starboard Value, leading to the appointment of Jeff Epstein and Christie Simons to its Board of Directors following the 2025 Annual Meeting. This agreement, which includes Starboard withdrawing its director nominees and agreeing to certain standstill provisions, aims to enhance Autodesk’s board capabilities and drive long-term shareholder value. The new directors bring significant expertise in technology, finance, and audit, which is expected to support Autodesk’s strategic initiatives in industry cloud, platform, and AI strategies.

Spark’s Take on ADSK Stock

According to Spark, TipRanks’ AI Analyst, ADSK is a Outperform.

Autodesk demonstrates robust financial performance with strong profitability and cash flow generation, contributing positively to its overall score. However, the high P/E ratio indicates potential overvaluation, and technical indicators suggest downward momentum. The earnings call reflected optimism with some caution due to macroeconomic uncertainties and challenges in new business growth. These factors combined result in a moderate overall stock score.

To see Spark’s full report on ADSK stock, click here.

Autodesk’s Betsy Rafael to Leave Board in 2025

On April 1, 2025, Elizabeth ‘Betsy’ Rafael announced her decision not to seek re-election to Autodesk’s Board of Directors at the 2025 Annual Meeting of Stockholders, marking the end of her advisory role on April 30, 2025. Rafael, who joined the Board in 2013 and served as Interim CFO in 2024, was praised for her leadership during a period of significant growth, positioning Autodesk for future success.

Autodesk Announces Major Workforce Restructuring Plan

On February 27, 2025, Autodesk announced a global restructuring plan, resulting in a 9% workforce reduction, impacting approximately 1,350 employees. This move is part of Autodesk’s strategy to optimize its go-to-market organization and reallocate resources towards strategic priorities like cloud and AI investments. The restructuring is expected to incur pre-tax charges between $135 million and $150 million, with completion anticipated by the end of fiscal 2026. Additionally, Autodesk reported a 12% revenue growth in the fourth quarter of fiscal 2025, reaching $1.64 billion, and has initiated the optimization phase of its sales and marketing plan to enhance shareholder value.