monday.com Ltd. (MNDY) - Overvalued With Moderate Growth Factors
monday.com shares moved -63.5% over the last 52 weeks, with a high of $314.28 and a low of $73.58. During this time, the stock lagged the S&P 500 index by -42.9%. monday.com Ltd., together with its subsidiaries, develops software applications in the United States, Europe, the Middle East, Africa, and internationally. The mid-cap Technology company has 1,064 full time employees and is based in Tel Aviv, Israel. monday.com has not offered any dividends in the last year.
The Business is Unprofitable and Its BalanceSheet is Highly Leveraged:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|
| Revenue (k) | $78,089 | $161,123 | $308,150 |
| Revenue Growth | n/a | 106.33% | 91.25% |
| Operating Margins | -118.5% | -93.4% | -40.9% |
| Operating Margins Growth | n/a | 21.18% | 56.21% |
| Net Margins | -117.32% | -94.46% | -41.96% |
| Net Margins Growth | n/a | 19.49% | 55.58% |
| Free Cash Flow (k) | -$38,417 | -$42,656 | $2,597 |
| FCF Growth | n/a | -11.03% | 106.09% |
| Capital Expenditures (k) | -$1,767 | -$5,481 | -$13,758 |
| Net Debt / EBITDA | 1.76 | 0.73 | 7.21 |
monday.com Has Elevated P/B and P/E Ratios:
Compared to the Technology sector's average of 26.5, monday.com has a trailing twelve month price to earnings (P/E) ratio of -29.0 and, based on its EPS guidance of -1.5, an expected P/E ratio of -80.6.
monday.com's price to book (P/B) ratio is 8.4 compared to its sector average of 5.57. The company is likley overvalued in terms of its net tangible assets.
monday.com Has an Average Rating of Buy and an Analyst Consensus of Strong Upside Potential:
17 analysts are following monday.com and have set target prices ranging from $115 to $230 per share. On average, they have given the company a rating of buy. At the current price of $120.94, MNDY is trading -20.34% away from its average analyst target price of $151.82 per share, implying an analyst consensus of strong upside potential for the stock.
The company has an above average percentage of its shares sold short since 13.3% of the company's shares are tied to short positions. Institutions own 62.2% of monday.com's shares, while the insider ownership rate stands at 32.18%. The biggest shareholder is Insight Holdings Group, Llc with a 29% stake in the company worth approximately $1,566,032,378.
