Autodesk, Inc. (ADSK) Stock Analysis
Autodesk, Inc. (ADSK) Stock Analysis
Analysis from 10-Q filed 2025-11-26. Data as of Q4 2025.
Overall Grade: F (Concerning)
Autodesk, Inc. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 24.0% | Strong cash generation |
| Debt/Equity | 0.9x | Moderate leverage |
Investment Thesis: Healthy free cash flow margin of 24.0% provides financial flexibility for growth and shareholder returns.
Explore Autodesk, Inc.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: Autodesk, Inc. earns N/A ROIC
Autodesk, Inc.'s trailing-twelve-month ROIC of N/A (sector median: 5.2%), driven by NOPAT margin of 24.5% combined with asset turnover of 0.0x. Source: 10-Q filed 2025-11-26. Gross margin of 90.7% with operating margin at 34.1% reflects strong pricing power.
| Metric | ADSK | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 5.2% |
| Gross Margin | 90.7% | Excellent | Strong pricing power |
| Operating Margin | 34.1% | Excellent | Efficient operations |
Cash Flow: Autodesk, Inc. generates $1.6B FCF at 24.0% margin, positive NaN/8 quarters
Autodesk, Inc. generated $1.6B in free cash flow (TTM), a 24.0% FCF margin, a margin that ranks Top 25% in Technology. Operating cash flow exceeds net income by 1.5x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-26.
| Metric | ADSK | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 24.0% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $1.6B | Good | Positive cash generation |
| OCF/Net Income | 1.5x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Autodesk, Inc. at 0.9x leverage
Autodesk, Inc.'s debt-to-equity ratio of 0.9x reflects elevated leverage. Total debt of $2.5B offset by $2.3B in cash. Source: 10-Q filed 2025-11-26.
| Metric | ADSK | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.9x | Adequate | Moderate leverage |
| Net Cash Position | $-193.0M | Adequate | Net debt position |
Valuation: Autodesk, Inc. trades at 59.5x earnings
Autodesk, Inc. trades at a P/E of 59.5x.
| Metric | ADSK | Rating | Context |
|---|---|---|---|
| P/E Ratio | 59.5x | Warning | Premium valuation |
| EV/Sales | 0.0x | Excellent | Attractive revenue multiple |
Capital Allocation: Autodesk, Inc. returns 0.0% shareholder yield
Autodesk, Inc.'s total shareholder yield is 0.0% (dividends + buybacks). Source: 10-Q filed 2025-11-26.
| Metric | ADSK | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $1.4B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 24.0% | Top 25% | 2.6x above |
| Gross Margin | 90.7% | Top 25% | 1.8x above |
| Operating Margin | 34.1% | Top 5% | 7.0x above |
| P/E Ratio | 59.5x | N/A | - |
Financial Scorecard
| Metric | ADSK | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | 24.0% | Excellent | Top 25% of sector (median: 9.1%) |
| Gross Margin | 90.7% | Excellent | Top 25% of sector (median: 51.8%) |
| Debt to Equity Ratio | 85.8% | Adequate | Elevated but manageable |
| P/E Ratio (Price-to-Earnings) | 59.5x | Warning | High expectations priced in |
Frequently Asked Questions
Q: What is Autodesk, Inc.'s Return on Invested Capital (ROIC)?
Autodesk, Inc. (ADSK) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 5.2%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is Autodesk, Inc.'s Free Cash Flow Margin?
Autodesk, Inc. (ADSK) has a free cash flow margin of 24.0%, generating $1.6 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is Autodesk, Inc. stock overvalued or undervalued?
Autodesk, Inc. (ADSK) trades at a P/E ratio of 59.5x, which is above the sector median of N/A. The EV/Sales multiple is 0.0x.
Q: How much debt does Autodesk, Inc. have?
Autodesk, Inc. (ADSK) has a debt-to-equity ratio of 0.9x with total debt of $2.5 billion. Net debt position is $193.0 million.
Q: Is Autodesk, Inc. buying back stock?
Autodesk, Inc. (ADSK) repurchased $1.4 billion of stock over the trailing twelve months.
Q: How does Autodesk, Inc. compare to competitors in Technology?
Compared to other companies in Technology, Autodesk, Inc. (ADSK) shows: ROIC of N/A is below the sector median of 5.2% (NaNx median). FCF margin of 24.0% exceeds the sector median of 9.1% (Top 20% of sector). Gross margin at 90.7% is 38.9 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with Autodesk, Inc.?
Autodesk, Inc. (ADSK) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-11-26. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.