For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Autodesk (
ADSK Quick Quote ADSK - Free Report) ten years ago? It may not have been easy to hold on to ADSK for all that time, but if you did, how much would your investment be worth today? Autodesk's Business In-Depth
With that in mind, let's take a look at Autodesk's main business drivers.
San Rafael, CA-based Autodesk develops model-based design, engineering and documentation software. The company serves customers in architecture, engineering and construction; product design and manufacturing; and digital media and entertainment industries.
Autodesk recognizes revenue from the sale of product subscriptions, cloud service offerings, and Enterprise Business Agreements (EBAs), renewal fees for existing maintenance plan agreements that were initially purchased with a perpetual software license, and consulting, training and other goods and services. Autodesk reported revenues of $5.01 billion in fiscal 2023. Total maintenance and subscription revenues accounted for 94.2% of revenues, while the rest came from License and other. Autodesk has four product families: Architecture, Engineering and Construction (AEC) that, Manufacturing (MFG), AutoCAD and AutoCAD LT (ACAD) and Media and Entertainment (M&E). AEC solutions include AutoCAD Civil 3D, BIM 360, Industry Collections and PlanGrid to improve the way building, infrastructure, and industrial projects are designed, built, and operated. The product segment contributed 48.3% to revenues in fiscal 2023. MFG, which includes CAM solutions, Fusion 360, Vault and Industry Collections,provides manufacturers in automotive, transportation, industrial machinery, consumer products and building product industries with comprehensive digital design, engineering, manufacturing and production solutions. The product line contributed 20.7% to revenues in fiscal 2023. ACAD comprises AutoCAD and AutoCAD LT. AutoCAD software is a customizable and extensible CAD application for professional design, drafting, detailing, and visualization. AutoCAD LT software is purpose built for professional drafting and detailing. The product line contributed 29.4% to revenues in fiscal 2023. Media and entertainment products includes Maya, Shotgun, 3ds Max and Industry Collections that provide tools for digital sculpting, modeling, animation, effects, rendering, and compositing for design visualization, visual effects and games production. The product segment contributed 6% to revenues. Geographically, Americas contributed 41.8% to revenues in fiscal 2023. Europe, Middle East, and Africa (EMEA), and Asia Pacific contributed 38.1% and 20.1% to revenues, respectively. Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Autodesk ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in September 2013 would be worth $5,588, or a 458.80% gain, as of September 18, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 163.65% and the price of gold went up 35.10% over the same time frame.
Looking ahead, analysts are expecting more upside for ADSK.
Autodesk’s performance is gaining from higher new product subscriptions revenues and an increase in renewal rates. We believe that higher demand for Autodesk’s cloud-based products, mobile solutions and design suites will drive the revenues over the long haul. The rapid adoption of BIM 360 products and the success of the maintenance to subscription program bodes well. Top-line growth is expected to remain strong thanks to strong demand for its AEC, AutoCAD and manufacturing product families. Nonetheless, ongoing supply chain troubles are likely to continue impacting its financial performance in the near-term. Muted growth in Maintenance revenues due to continued migration of maintenance plans to subscriptions is affecting the top line. High debt levels and unfavorable forex movements are persistent overhangs.
The stock is up 6.85% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2023. The consensus estimate has moved up as well.