Short Report on MongoDB Stock

MongoDB logged a -2.1% change during today's afternoon session, and is now trading at a price of $390.8 per share.

MongoDB, Inc. provides general purpose database platform worldwide. Based in New York, NY, the large-cap Technology company has 4,527 full time employees. MongoDB has not offered a dividend during the last year.

An Exceptionally Strong Balance Sheet:

2020-01-31 2021-01-31 2022-01-31 2023-01-31
Revenue (MM) $422 $590 $874 $1,284
Gross Margins 70.3% 70.0% 70.3% 72.8%
Operating Margins -35.1% -35.4% -33.1% -27.0%
Net Margins -41.62% -45.22% -35.12% -26.9%
Net Income (MM) -$176 -$267 -$307 -$345
Net Interest Expense (MM) -12 -52 -10 15
Net Interest Expense (MM) -$12 -$52 -$10 $15
Depreciation & Amort. (MM) -$20 -$25 -$24 -$29
Earnings Per Share -$3.14 -$4.53 -$4.75 -$4.67
EPS Growth n/a -44.27% -4.86% 1.68%
Diluted Shares (MM) 56 59 65 71
Free Cash Flow (MM) -$33 -$54 -$1 -$20
Capital Expenditures (MM) -$4 -$12 -$8 -$7
Net Current Assets (MM) -$133 -$271 $335 $387
Current Ratio 4.59 3.22 4.02 3.8
Long Term Debt (MM) $911 $938 $1,137 $1,140
LT Debt to Equity 11.0 -186.32 1.7 1.54

MongoDB has growing revenues and increasing reinvestment in the business, an excellent current ratio, and wider gross margins than its peer group. However, MongoDB has consistently poor operating margins with a positive growth rate, declining EPS growth, and negative and highly variable cash flows.

MongoDB does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of $2.11, the company has a forward P/E ratio of 151.2. In comparison, the average P/E ratio for the Technology sector is 27.16. Furthermore, MongoDB is likely overvalued compared to the book value of its equity, since its P/B ratio of 34.78 is higher than the sector average of 6.23.

MongoDB Has an Average Rating of Buy:

The 24 analysts following MongoDB have set target prices ranging from $210.0 to $490.0 per share, for an average of $392.54 with a buy rating. As of April 2023, the company is trading -18.7% away from its average target price, indicating that there is an analyst consensus of some upside potential.

MongoDB has an average amount of shares sold short because 6.2% of the company's shares are sold short. Institutions own 92.9% of the company's shares, and the insider ownership rate stands at 3.5%, suggesting a large amount of insider shareholders. The largest shareholder is Price (T.Rowe) Associates Inc, whose 11% stake in the company is worth $2,967,733,544.

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.