What monday.com (MNDY) Investors Need to Know Today

monday.com declined by -1.6% Friday, and is now trading at a price of $121.92 per share.

monday.com returned losses of -8.5% last year, with its stock price reaching a high of $171.89 and a low of $73.58. Over the same period, the stock underperformed the S&P 500 index by -9.0%. As of April 2023, the company's 50-day average price was $138.56. 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 1,549 full time employees. monday.com has not offered a regular dividend during the last year.

A Strong Balance Sheet Despite Its Lack of Profitability:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (k) $78,089 $161,123 $308,150 $519,029
Operating Margins -118.5% -93.4% -40.9% -29.3%
Net Income (k) -$91,611 -$152,203 -$129,294 -$136,867
Interest Cost $1,475 $34 -$838 $22,554
Depreciation & Amort. -$579 -$1,888 -$2,746 -$8,567
Earnings Per Share -$2.36 -$3.92 -$4.53 -$2.92
EPS Growth n/a -66.1% -15.56% 35.54%
Diluted Shares (k) 38,833 38,833 30,332 47,738
Free Cash Flow (k) -$38,417 -$42,656 $2,597 $8,137
Net Current Assets (k) -$134,460 -$227,354 $683,696 $564,542
Current Ratio 2.25 1.05 4.0 3.1

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 $-0.09. The average P/E ratio for the Technology sector is 27.16. Furthermore, monday.com is likely overvalued compared to the book value of its equity, since its P/B ratio of 8.56 is higher than the sector average of 6.23.

monday.com Has an Analyst Consensus of Strong Upside Potential:

The 15 analysts following monday.com have set target prices ranging from $140.0 to $210.0 per share, for an average of $174.93 with a buy rating. As of April 2023, the company is trading -20.8% away from its average target price, indicating that there is an analyst consensus of strong upside potential.

monday.com has an above average percentage of its shares sold short because 11.4% of the company's shares are sold short. Institutions own 72.5% of the company's shares, and the insider ownership rate stands at 22.28%, suggesting a large amount of insider shareholders. The largest shareholder is Insight Holdings Group, LLC, whose 29% stake in the company is worth $1,672,899,285.

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.

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