Shares of (MNDY) Are on Sale - But Consider the Risk. may be overvalued with mixed growth prospects, but the 17 analysts following the company on average give it a buy rating. The analysts have set target prices ranging from $115 to $230 per share, for an average of $151.12. At today's price of $104.58, is trading -30.8% away from its average target price, suggesting there is an analyst consensus of strong upside potential. Ltd., together with its subsidiaries, develops software applications in the United States, Europe, the Middle East, Africa, and internationally. Based in Tel Aviv, Israel, the mid-cap Technology company has 1,064 full time employees. has not offered a regular dividend during the last year.

Growing Revenues With Increasing Reinvestment in the Business:

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%
Earnings Per Share -$2.36 -$3.95 -$4.53
EPS Growth n/a -67.37% -14.68%
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 does not have a meaningful trailing P/E ratio since its earnings per share are negative. Its forward EPS guidance is negative too, at -1.47. The average P/E ratio for the Technology sector is 26.5. is likely overvalued compared to the book value of its equity, since its P/B ratio of 7.3 is higher than the sector average of 5.57.

The analyst support for the stock comes from the company's strong revenue growth, coupled with significant re-investment into the business as demonstrated by the upwards capital expenditure trend. Margins too are improving, which points to strong growth potential. However, the consistent lack of profitability coupled with a crowded market in terms of competition probably means that is not going to be the next Amazon. Amazon is often cited as an example of an unprofitable company that executed on its vision and eventually provided payoffs for investors, but as Bezon himself admitted, they lacked any significant competition during the first seven years they built their business..

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.