![]() In contrast, with more adaptable assembly lines, a manufacturer could mass-produce a thousand bicycles outfitted with sensors that provide data on how cyclists use the bikes. In the context of a bicycle factory, consider the following: Modern assembly lines can crank out 100,000 bicycles per day despite receiving no input from customers. There's a pressing need to evolve beyond that approach in the modern era, and the "Design-Make Convergence Loop" does just that by emphasizing adaptable production lines and continuous feedback throughout the manufacturing process to speed up iterations and cut costs. ![]() However, industries and processes are undergoing increasing digital transformation. Designers have traditionally relied on a technique known as the "Design-Feedback Loop," in which feedback from a user is fed back into the design process as a means of finding ways to make the item better. Investments merits Plenty of market opportunity aheadĬonstruction and Manufacturing are the two primary markets that I will concentrate on as they represent the bulk of ADSK's TAM, collectively $74 billion.īoth of these fields are experiencing a convergence of the design-make process. ADSK serves customers worldwide.Īs of FY21, ADSK has 40% revenue in Americas, 39% in EMEA, and 21% in Asia. Its features help customers innovate, save time and money, make better product decisions, increase sustainability, better communicate with stakeholders, and optimize their designs. Company overviewĪDSK is a software company specializing in products for the building and construction sectors, making construction and maintenance of buildings, roads, and factories more efficient. I expect it to make $7.1 billion in revenue and $2.3 billion in earnings in FY26, which, based on a 26x forward earnings multiple, would give it an equity value of $279.75 per share, which is 40% more than it is worth now. I believe management's long-term guidance is attainable as it is supported by several growth drivers and its ability to raise prices. It serves a critical function in its customers' workflow processes, thereby giving me confidence that ADSK is not a business that can be easily replaced. The key reason I favor ADSK is the critical nature of its product. ![]() I recommend going long Autodesk ( NASDAQ: ADSK) ($199.9 as of this writing). ![]() Pcess609/iStock via Getty Images Thesis highlight ![]()
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