monday.com 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 $108.56, monday.com is trading -28.16% away from its average target price, suggesting there is an analyst consensus of strong upside potential.
monday.com 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. monday.com has not offered a regular dividend during the last year.
monday.com 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. monday.com is likely overvalued compared to the book value of its equity, since its P/B ratio of 7.6 is higher than the sector average of 5.57.
So why are analysts giving MNDY a good rating? We believe analysts could be encouraged by the company's impressive 47.5% rate of cash flow growth over the last 3% years. They might also believe monday.com's positive margin growth trend will continue.
| 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 |
