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ADSK Autodesk, Inc. - Fundamental Analysis

NEUTRAL
ADSK Stock | Fundamental Analysis & Investment Insights
NASDAQ Technology Software - Application
Current Price
$286.73
Analyst Target
$366.13
+27.7% Upside
52W High
$329.09
52W Low
$232.67

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AI Analysis

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Confidence Score
72%
Analysis Accuracy
The Advanced Deterministic Scorecard shows a mixed financial health profile with a weak Piotroski F-Score of 4/9 and an exceptionally high Altman Z-Score of 86023792819.2, indicating no distress risk despite balance sheet concerns. Autodesk trades at a premium valuation (P/E 55.57, Price/Sales 8.87) well above its Graham Number of $39.8, reflecting high growth expectations. Strong profitability metrics like 92.13% gross margin and 40.33% ROE are offset by weak liquidity (Current Ratio 0.82) and insider selling activity. Analysts maintain a 'buy' recommendation with a $366.13 target, implying 27.7% upside, but recent price performance has been negative over multiple horizons.

Key Strengths

Exceptionally high Altman Z-Score indicates near-zero bankruptcy risk despite leverage
Industry-leading gross margin of 92.13% demonstrates pricing power and low cost of sales
Strong return on equity (40.33%) significantly above sector average (28.68%)
Consistent earnings beat streak with 3 out of last 4 quarters exceeding estimates
Robust year-over-year revenue (18.00%) and earnings growth (26.00%)

Key Risks

Weak Piotroski F-Score of 4/9 suggests deteriorating financial health and operational inefficiencies
Poor liquidity position with Current Ratio (0.82) and Quick Ratio (0.65) below 1.0
High valuation multiples (P/E 55.57, P/B 21.01) make stock vulnerable to multiple contraction
Insider selling activity over last 6 months totaling $11.43M signals leadership skepticism
Current price ($286.73) is 619% above Graham Number ($39.8), indicating extreme overvaluation by defensive standards
AI Fair Value Estimate
Based on comprehensive analysis
$152.22
-46.9% below current price

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