ADSK - Autodesk: Great Economics For A Long-Term Investment

2024-03-12 13:38:54 ET

Summary

• Autodesk has sustained high and expanding margins, indicating their strong pricing power and competitive advantage.
• Free cash flow is set to rebound after declining due to a business model transition.
• Autodesk is trading at a discount to its historical averages, presenting an opportunity for long-term investors.

Thesis

If you asked me to name some fundamentals of a great company, I'd highlight a few key factors. First, a product that can be sold for many times what it costs to produce. Second, a product so good that customers not only remain loyal, but actually increase their spending each year. Third, a product that makes it expensive or difficult for customers to switch to an alternative. And finally, a company that doesn't cost a lot of money to run or maintain....

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