Short Report on Cardlytics Stock

Cardlytics shares moved -84.9% over the last 52 weeks, with a high of $49.7 and a low of $2.57. During this time, the stock lagged the S&P 500 index by -78.0%. As of January 2022, the company's 50-day average price is $5.09. Cardlytics, Inc. operates an advertising platform in the United States and the United Kingdom. The small-cap Consumer Discretionary company has 501 full time employees and is based in Atlanta, GA. Cardlytics has not offered any dividends in the last year.

Snapshot of the Company's Negative and Irregular Margins:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (k) $210,430 $186,892 $267,116 $298,542
Revenue Growth n/a -11.19% 42.93% 11.76%
Gross Margins 37.8% 33.9% 38.7% 37.7%
Gross Margins Growth n/a -10.32% 14.16% -2.58%
Operating Margins -8.2% -28.8% -36.3% -45.4%
Operating Margins Growth n/a -251.22% -26.04% -25.07%
Net Margins -8.15% -29.65% -48.13% -155.85%
Net Margins Growth n/a -263.8% -62.33% -223.81%
Earnings Per Share -$0.72 -$2.04 -$3.99 -$14.82
EPS Growth n/a -183.33% -95.59% -271.43%
Diluted Shares (MM) 24 27 32 34
Free Cash Flow (k) $437 -$17,715 -$51,087 -$67,390
FCF Growth n/a -4153.78% -188.38% -31.91%
Capital Expenditures (k) -$11,020 -$10,117 -$12,564 -$13,486
LT Debt to Equity 0.0 1.11 0.27 1.07

Cardlytics has negative earnings for the current period, so its trailing twelve month P/E ratio is not meaningful. Its forward P/E isn't meaningful either because its guidance EPS is -1.36.

On the other hand, Cardlytics is possibly undervalued in terms of its net assets because its P/B ratio is 1.1 compared to its sector average of 3.12.

Most of the Market Indicators on Cardlytics Are Negative:

4 analysts are following Cardlytics and have set target prices ranging from $3.5 to $8.0 per share. On average, they have given the company a rating of hold. At the current price of $7.01, CDLX is trading 19.22% away from its average analyst target price of $5.88 per share, implying an analyst belief that shares are overpriced for the stock.

The company has an unusually large proportion of its shares sold short since 16.8% of the company's shares are tied to short positions. Institutions own 89.5% of Cardlytics's shares, while the insider ownership rate stands at 2.96%. The biggest shareholder is CAS Investment Partners, LLC with a 16% stake in the company worth approximately $37,966,974.

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.