Autodesk, Inc.ADSK
NASDAQ • Technology
$218.45
P/E
41.76
PEG
6.63
FCF Yield
5.0%
Rev Growth YoY
+19.4% YoY
Gross Margin
92.3%
Health Score
7/10
D/E Ratio
0.82
Confidence
MEDIUM
Business Snapshot
Autodesk, Inc. is a large-cap software company trading on NASDAQ with a market capitalisation of $47.73B. The company develops design, engineering, and construction software — including its flagship AutoCAD and Revit platforms — serving industries such as architecture, manufacturing, and media. Autodesk has been executing a multi-year transition to a subscription-based, cloud-first model that now underpins its revenue base.
Financial Health
**Score: 7/10** Autodesk demonstrates strong underlying financial quality, anchored by an exceptional gross margin of 92.3% and free cash flow of $2.39B (FCF yield of 5.0%), indicating the business generates substantial cash from its subscription model. Debt/equity of 0.82x is manageable and does not raise immediate structural concerns...
Risk Assessment
- **VALUATION: P/E of 41.76x is approximately 67% above the sector average of 25x, leaving limited margin of safety if growth disappoints.** - **TECHNICALS: Price is trading below both the 50-day moving average ($244.24) and the 200-day moving average ($286.66), with a confirmed death cross — a bearish structural signal.** - **EARNINGS QUALITY: Earnings growth of 6.3% substantially trails revenue growth of 19.4%, suggesting margin compression or elevated operating costs are limiting profit conversion.** - **LIQUIDITY: Current ratio of 0.85x indicates short-term liabilities exceed short-term assets, which could create pressure in tighter credit environments.** - **PRICE DRAWDOWN: The stock is trading near its 52-week low of $214.10, down approximately 34% from its 52-week high of $329.09, reflecting sustained selling pressure.** ---...