Autodesk, Inc. (NASDAQ: ADSK)

Sector: Technology Industry: Software - Application CIK: 0000769397
Market Cap 58.97 Bn
P/B 20.38
P/E 53.08
P/S 8.56
ROIC (Qtr) 20.02
Div Yield % 0.00
Rev 1y % (Qtr) 18.03
Total Debt (Qtr) 2.73 Bn
Debt/Equity (Qtr) 0.95

About

0

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 2.15B provides robust 0.79x coverage of total debt 2.73B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 1.99B provide 34.89x coverage of short-term debt 57M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 2.12B exceeds capital expenditure of 40M by 52.88x, indicating strong organic growth funding capability.
  • R&D investment of 1.62B represents healthy 0.42x of deferred revenue 3.85B, indicating strong future innovation pipeline.
  • Operating cash flow of 2.15B provides strong 11.78x coverage of operating expenses 183M, showing operational efficiency.

Bear case

  • Operating cash flow of 2.15B barely covers its investment activities of (168M), with a coverage ratio of -12.83, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (168M) provide weak support for R&D spending of 1.62B, which is -0.10x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 1.99B provide limited coverage of acquisition spending of (24M), which is -82.88x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 2.15B provides insufficient coverage of deferred revenue obligations of 3.85B, which is 0.56x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 2.15B shows concerning coverage of stock compensation expenses of 793M, with a 2.72 ratio indicating potential earnings quality issues.

Product and Service Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 5.33 2.65
EV to Cash from Ops. EV/CFO 27.70 13.37
EV to Debt EV to Debt 21.84 57.69
EV to EBIT EV/EBIT 39.02 19.12
EV to EBITDA EV/EBITDA 35.04 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 28.23 14.69
EV to Market Cap EV to Market Cap 1.01 -92.28
EV to Revenue EV/Rev 8.67 4.60
Price to Book Value [P/B] P/B 20.38 4.26
Price to Earnings [P/E] P/E 53.08 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) 0.00 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -11.11 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 38.41 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 1.83 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 15.60 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 13.42 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 13.42 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 2.56 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 60.71 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15.59 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.62 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.42 3.75
Current Ratio Curr Ratio (Qtr) 0.82 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.95 0.17
Interest Cover Ratio Int Coverage (Qtr) 0.00 -52.32
Times Interest Earned Times Interest Earned (Qtr) 0.00 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 25.00 -100.06
EBIT Margin % EBIT Margin % (Qtr) 22.21 -164.24
EBT Margin % EBT Margin % (Qtr) 22.21 -116.94
Gross Margin % Gross Margin % (Qtr) 90.70 58.20
Net Profit Margin % Net Margin % (Qtr) 16.10 -121.65