NasdaqGS:CSOD

Stock Analysis Report

Executive Summary

Cornerstone OnDemand, Inc., together with its subsidiaries, provides learning and human capital management software through software-as-a-service model worldwide.

Snowflake

Fundamentals

Excellent balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has Cornerstone OnDemand's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.3%

CSOD

-0.9%

US Software

1.8%

US Market


1 Year Return

11.2%

CSOD

22.0%

US Software

7.3%

US Market

Return vs Industry: CSOD underperformed the US Software industry which returned 22% over the past year.

Return vs Market: CSOD exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

CSODIndustryMarket
7 Day-3.3%-0.9%1.8%
30 Day-1.1%-0.7%-0.7%
90 Day-9.7%-4.2%0.06%
1 Year11.2%11.2%23.7%22.0%9.7%7.3%
3 Year29.5%29.5%119.6%111.0%46.3%36.9%
5 Year61.0%61.0%171.5%151.9%64.5%46.5%

Price Volatility Vs. Market

How volatile is Cornerstone OnDemand's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cornerstone OnDemand undervalued compared to its fair value and its price relative to the market?

33.35x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: CSOD ($54.16) is trading above our estimate of fair value ($49.83)

Significantly Undervalued: CSOD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CSOD is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: CSOD is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate CSOD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CSOD is overvalued based on its PB Ratio (33.4x) compared to the US Software industry average (5.5x).


Next Steps

Future Growth

How is Cornerstone OnDemand forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

117.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSOD is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CSOD is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CSOD is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CSOD's revenue (13% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: CSOD's revenue (13% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if CSOD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Cornerstone OnDemand performed over the past 5 years?

13.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CSOD is unprofitable, but has reduced losses over the past 5 years at a rate of 13.5% per year.

Accelerating Growth: Unable to compare CSOD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CSOD is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (19.1%).


Return on Equity

High ROE: CSOD has a negative Return on Equity (-18.37%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CSOD is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CSOD is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Cornerstone OnDemand's financial position?


Financial Position Analysis

Short Term Liabilities: CSOD's short term assets ($563.5M) exceeds its short term liabilities ($376.7M)

Long Term Liabilities: CSOD's short term assets (563.5M) exceeds its long term liabilities (376.6M)


Debt to Equity History and Analysis

Debt Level: CSOD's debt to equity ratio (298.8%) is considered high

Reducing Debt: CSOD's debt to equity ratio has reduced from 503.7% to 298.8% over the past 5 years.


Balance Sheet

Inventory Level: CSOD has a low level of unsold assets or inventory.

Debt Coverage by Assets: CSOD's debt is covered by short term assets (assets are 1.936330x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable CSOD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CSOD is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 43.1% per year.


Next Steps

Dividend

What is Cornerstone OnDemand's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate CSOD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CSOD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if CSOD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CSOD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CSOD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Cornerstone OnDemand's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Adam Miller (50yo)

20.4yrs

Tenure

US$6,554,601

Compensation

Mr. Adam L. Miller Founded Cornerstone OnDemand, Inc. in 1999 and has been its Chief Executive Officer and President since May 1999. Mr. Miller is responsible for creating and driving the long-term vision  ...


CEO Compensation Analysis

Compensation vs. Market: Adam's total compensation ($USD6.55M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Adam's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.5yrs

Average Tenure

49.5yo

Average Age

Experienced Management: CSOD's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

50yo

Average Age

Experienced Board: CSOD's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: CSOD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,113,32904 Oct 19
Adam Miller
EntityIndividual
Role
Chief Executive Officer
Founder
Shares21,000
Max PriceUS$53.54
SellUS$308,76203 Jul 19
Adam Weiss
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer & General Counsel
Shares5,304
Max PriceUS$58.21
SellUS$401,78603 Jul 19
Mark Goldin
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares6,902
Max PriceUS$58.21
SellUS$355,42807 May 19
Brian Swartz
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares6,598
Max PriceUS$53.87
SellUS$111,96108 Mar 19
Adam Weiss
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer & General Counsel
Shares2,079
Max PriceUS$54.39
SellUS$143,41108 Mar 19
Mark Goldin
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares2,663
Max PriceUS$54.39
SellUS$214,49708 Mar 19
Brian Swartz
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares3,983
Max PriceUS$54.39
SellUS$242,72001 Mar 19
Adam Weiss
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer & General Counsel
Shares4,274
Max PriceUS$56.79
SellUS$448,35701 Mar 19
Brian Swartz
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares7,895
Max PriceUS$56.79
SellUS$302,29301 Mar 19
Jeffrey Lautenbach
EntityIndividual
Role
Senior Key Executive
President of Global Field Operations
Shares5,323
Max PriceUS$56.79
SellUS$282,07601 Mar 19
Mark Goldin
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares4,967
Max PriceUS$56.79
SellUS$259,62301 Mar 19
Adam Miller
EntityIndividual
Role
Chief Executive Officer
Founder
Shares4,562
Max PriceUS$56.91

Ownership Breakdown


Management Team

  • Adam Miller (50yo)

    Founder

    • Tenure: 20.4yrs
    • Compensation: US$6.55m
  • Steven Seymour (50yo)

    Co-Founder

    • Tenure: 18.8yrs
    • Compensation: US$1.35m
  • Brian Swartz (46yo)

    Chief Financial Officer

    • Tenure: 3.4yrs
    • Compensation: US$9.06m
  • Mark Goldin (58yo)

    Chief Technology Officer

    • Tenure: 9.3yrs
    • Compensation: US$6.18m
  • Vincent Belliveau (43yo)

    Chief Executive of Europe

    • Tenure: 0yrs
    • Compensation: US$6.41m
  • Jeff Lautenbach (50yo)

    President of Global Field Operations

    • Tenure: 1.8yrs
    • Compensation: US$7.87m
  • Adam Weiss (41yo)

    Chief Administrative Officer & General Counsel

    • Tenure: 3.5yrs
    • Compensation: US$5.30m
  • Jennifer Gianola

    Vice President of Investor Relations

    • Tenure: 1.6yrs
  • Trish Coughlin (49yo)

    Chief Accounting Officer

    • Tenure: 0.8yrs
  • Deaira Irons

    Senior Manager of PR

    • Tenure: 0yrs

Board Members

  • Dick Haddrill (66yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$457.60k
  • Adam Miller (50yo)

    Founder

    • Tenure: 20.4yrs
    • Compensation: US$6.55m
  • Steffan Tomlinson (48yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$289.66k
  • Joe Osnoss (41yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$288.61k
  • Kristina Salen (48yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$299.66k
  • Elisa Steele (52yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: US$484.94k
  • Marcus Ryu (45yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$457.60k
  • Rob Cavanaugh (50yo)

    Director

    • Tenure: 4.5yrs
    • Compensation: US$284.66k
  • Dean Carter (54yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$291.63k

Company Information

Cornerstone OnDemand, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cornerstone OnDemand, Inc.
  • Ticker: CSOD
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$3.286b
  • Shares outstanding: 60.68m
  • Website: https://www.cornerstoneondemand.com

Number of Employees


Location

  • Cornerstone OnDemand, Inc.
  • 1601 Cloverfield Boulevard
  • Suite 600 South
  • Santa Monica
  • California
  • 90404
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CSODNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 2011
8CODB (Deutsche Boerse AG)YesCommon StockDEEURMar 2011

Biography

Cornerstone OnDemand, Inc., together with its subsidiaries, provides learning and human capital management software through software-as-a-service model worldwide. Its enterprise human capital management pl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:13
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.