Here's How Much a $1000 Investment in Autodesk Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Autodesk (ADSK) 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 Fransisco, 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 $5.49 billion in fiscal 2024. Total maintenance and subscription revenues accounted for 93.1% 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 46.9% to revenues in fiscal 2024.
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 19.3% to revenues in fiscal 20234.
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 26.6% to revenues in fiscal 2024.
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 5.4% to revenues in fiscal 2024.
Geographically, Americas contributed 44.3% to revenues in fiscal 2024. Europe, Middle East, and Africa (EMEA), and Asia Pacific contributed 37.1% and 18.5% to revenues, respectively.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Autodesk ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in October 2014 would be worth $5,243.30, or a 424.33% gain, as of October 14, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 205.07% and the price of gold went up 106.99% over the same time frame.
Going forward, analysts are expecting more upside for ADSK.
Autodesk’s performance is gaining from new business growth, steady subscription renewal rates and strong competitive performance. Higher demand for its cloud-based products, mobile solutions and design suites is expected to drive the company’s revenues over the long haul. The rapid adoption of BIM 360 products and the success of the maintenance of the subscription program bode well for the growth of the company. Autodesk’s top-line growth is expected to remain strong, thanks to the demand for its AEC, AutoCAD and manufacturing product families. However, muted growth in Maintenance revenues due to the continued migration of maintenance plans to subscriptions is affecting the top line. High debt levels and unfavorable forex movements are persistent overhangs. Shares have underperformed the industry in the year-to-date period.
Shares have gained 6.71% over the past four weeks and there have been 9 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Autodesk, Inc. (ADSK) : Free Stock Analysis Report