AI

AI Investors Feel the Pain Today

C3.ai has moved -7.0% so far today on a volume of 2,293,902, compared to its average of 1,594,153. In contrast, the S&P 500 index moved -1.7%. Over the last 52 weeks, the stock moved -65.6%, with a high of $34.55 and a low of $10.65. During this time, the stock lagged the S&P 500 index by -47.6%. C3.ai, Inc. The mid-cap Technology company has 704 full time employees and is based in Redwood City, CA. C3.ai has not offered any dividends in the last year.

Snapshot of the Profitability Issues:

2019-04-30 2020-04-30 2021-04-30 2022-04-30
Revenue (MM) $92 $157 $183 $253
Revenue Growth n/a 71.0% 17.0% 38.0%
Gross Margins 66.83% 75.24% 75.7% 74.79%
Gross Margins Growth n/a 12.58% 0.61% -1.2%
Operating Margins -39.35% -45.64% -32.89% -77.59%
Operating Margins Growth n/a -15.98% 27.94% -135.91%
Free Cash Flow (MM) $-42 $-64 $-39 $-91
FCF Growth n/a -53.91% 38.93% -131.63%
Net Debt / EBITDA 2.78 0.47 2.06 1.76

Basic Valuation Metrics Show C3.ai Is Overvalued:

Compared to the Technology sector's average of 26.5, C3.ai has a trailing twelve month price to earnings (P/E) ratio of -6.0 and, based on its Eps guidance of -0.34, an expected P/E ratio of -32.2. The firm's price to earnings growth (PEG) is -0.31, which indicates that the company is undervalued in terms of its expected earnings growth. C3.ai's price to book (P/B) ratio is 1.3 compared to its sector average of 5.57.

There is Mixed market sentiment About C3.ai:

8 analysts are following C3.ai and have set target prices ranging from $11 to $19 per share. On average, they have given the company a rating of hold. At today's prices, AI is trading -19.58% away from its average analyst target price of $13.63 per share, implying an analyst consensus of some upside potential for the stock. The company has an average amount of shares sold short since 9.9% of the company's shares are tied to short positions. Institutions own 44.3% of C3.ai's shares, while the insider ownership rate stands at 13.22%. The biggest shareholder is the Vanguard Group, Inc. with a 8.47% stake in the company worth approximately $99,103,439.00.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

ON FOCUS