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MNDY

monday.com NasdaqGS:MNDY Stock Report

Last Price

US$141.22

Market Cap

US$6.4b

7D

17.6%

1Y

-41.4%

Updated

10 Aug, 2022

Data

Company Financials +
MNDY fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance0/6
Financial Health5/6
Dividends0/6

MNDY Stock Overview

monday.com Ltd., together with its subsidiaries, develops software applications in the United States, Europe, the Middle East, Africa, and internationally.

monday.com Competitors

Price History & Performance

Summary of all time highs, changes and price drops for monday.com
Historical stock prices
Current Share PriceUS$141.22
52 Week HighUS$450.00
52 Week LowUS$85.75
Beta0
1 Month Change31.14%
3 Month Change41.57%
1 Year Change-41.42%
3 Year Changen/a
5 Year Changen/a
Change since IPO-21.05%

Recent News & Updates

Aug 08

monday.com Non-GAAP EPS of -$0.33 beats by $0.42, revenue of $123.7M beats by $5.48M, updates FY guidance

monday.com press release (NASDAQ:MNDY): Q2 Non-GAAP EPS of -$0.33 beats by $0.42. Revenue of $123.7M (+75.2% Y/Y) beats by $5.48M. Number of Customers with more than $50k ARR grew 147% year over year Number of paying accounts from new monday Work OS products surpassed 1,000 Outlook For the third quarter of the fiscal year 2022, monday.com currently expects: Total revenue of $130 million to $131 million vs consensus of $125.74M, representing year-over-year growth of 57% to 58%. Non-GAAP operating loss of $25 million to $24 million and negative operating margin of 19% to 18%. For the full year 2022, monday.com now expects: FY Total revenue from prior $488 million - $492 million to $498M-$502M vs consensus of $491.30M,  Non-GAAP operating loss of $112 million to $108 million and negative operating margin of 22% to 21%. Shares +3.18% PM.

Jul 22

monday.com Invests In Growth As Global Slowdown Looms

monday.com Ltd. went public in June 2021, raising approximately $574 million in a U.S. IPO. The firm provides low- or no-code software solutions to businesses of all sizes worldwide. monday.com has produced growth but faces a potential global slowdown while the firm is generating increasing operating losses. The stock appears richly valued compared to its peers, so I'm on Hold for monday.com at this time. A Quick Take On monday.com monday.com Ltd. (MNDY) went public in June 2021, raising approximately $574 million in gross proceeds from an IPO that was priced at $155.00 per share. The firm provides low/no-code software as a service ("SaaS") software solutions to organizations worldwide. MNDY faces uncertainties, as it appears the U.S. economy is nearing or already in a recession, which may have the effect of slowing its sales cycles. Given macroeconomic risks and a stock that appears more richly valued than its peers despite increasing operating losses, I'm on Hold for MNDY for the near term. monday.com Overview Tel Aviv-Yafo, Israel-based monday.com was founded to develop what it calls its Work OS platform to enable organizations to more easily create software solutions from the firm's low/no-code software building blocks. Management is headed by co-founder and co-CEO Roy Mann, who was previously senior technology leader at Wix.com. Co-founder and Co-CEO Eran Zinman was previously the R&D Manager at the founding team of Conduit Mobile. The company's primary offerings include: Boards Integrations Forms Workspaces Automations Views Dashboards Projects, Dev, Marketer, Sales CRM The firm acquires most new customers via its self-serve online portal and through direct sale efforts. For larger firms, it uses customer support service personnel as needed to provide additional customer service capabilities. MNDY's Market & Competition According to a market research report by MarketsandMarkets, the global market for low-code software was an estimated $13.2 billion in 2020 and is expected to reach $45.5 billion in 2025. This represents a forecasted very strong CAGR of 28.1% from 2021 to 2025. The main drivers for this expected growth are a growing demand by companies of all sizes for digitizing operations and a continued maturation of agile DevOps practices. Also, the North American region is expected to account for the largest market share through 2025 and will likely continue to retain the largest companies serving the industry. Major competitive or other industry participants include: Asana Wrike SmartSheet Notion Citrix Systems Zendesk Freshworks SugarCRM Pipedrive Zoho Atlassian Procore Technologies Workday BambooHR Hootsuite Media Adobe Experience Cloud MNDY's Recent Financial Performance Total revenue by quarter has steadily over the past 5 quarters: 5 Quarter Total Revenue (Seeking Alpha) Gross profit by quarter has followed a similar trajectory as that of total revenue: 5 Quarter Gross Profit (Seeking Alpha) Selling, G&A expenses as a percentage of total revenue by quarter have risen markedly in Q1 2022: 5 Quarter Selling, G&A % Of Revenue (Seeking Alpha) Operating losses by quarter have remained material and worsened in Q1 2022: 5 Quarter Operating Income (Seeking Alpha) Earnings per share (Diluted) have followed roughly the same trajectory as operating losses: 5 Quarter Earnings Per Share (Seeking Alpha) (All data in above charts is GAAP) In the past 12 months, MNDY's stock price has dropped 51.1 percent vs. the U.S. S&P 500 index's fall of around 9.1 percent, as the chart below indicates: 52 Week Stock Price (Seeking Alpha) Valuation And Other Metrics For MNDY Below is a table of relevant capitalization and valuation figures for the company: Measure Amount Enterprise Value $4,140,000,000 Market Capitalization $4,930,000,000 Enterprise Value/Sales ((TTM)) 11.58 Price/Sales ((TTM)) 11.77 Revenue Growth Rate ((TTM)) 90.08% Operating Cash Flow ((TTM)) $4,040,000 CapEx Ratio (Op C.F./CapEx) -0.41 Earnings Per Share (Fully Diluted) -$4.53 (Source - Seeking Alpha) As a reference, a relevant partial public comparable would be Atlassian (TEAM); shown below is a comparison of their primary valuation metrics: Metric Atlassian monday.com Variance Enterprise Value/Sales ((TTM)) 20.98 11.58 -44.8% Price/Sales ((TTM)) 20.78 11.77 -43.4% Operating Cash Flow ((TTM)) $837,470,000 $4,040,000 -99.5% Revenue Growth Rate 32.8% 90.1% 174.8% (Source - Seeking Alpha) The Rule of 40 is a software industry rule of thumb that says that as long as the combined revenue growth rate and EBITDA percentage rate equal or exceed 40%, the firm is on an acceptable growth/EBITDA trajectory. MNDY's most recent GAAP Rule of 40 calculation was 47% as of Q1 2022, so the firm has performed well in this regard, per the table below: GAAP Rule of 40 Calculation Recent Rev. Growth % 90% GAAP EBITDA % -43% Total 47% (Source - Seeking Alpha) Commentary On monday.com In its last earnings call (Source - Seeking Alpha), covering Q1 2022's results, management highlighted its investments in security, governance and compliance offerings to enterprises.

Shareholder Returns

MNDYUS SoftwareUS Market
7D17.6%-3.6%0.3%
1Y-41.4%-17.4%-13.5%

Return vs Industry: MNDY underperformed the US Software industry which returned -17.4% over the past year.

Return vs Market: MNDY underperformed the US Market which returned -13.5% over the past year.

Price Volatility

Is MNDY's price volatile compared to industry and market?
MNDY volatility
MNDY Average Weekly Movement14.8%
Software Industry Average Movement10.7%
Market Average Movement7.9%
10% most volatile stocks in US Market17.2%
10% least volatile stocks in US Market3.2%

Stable Share Price: MNDY is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: MNDY's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
20121,064Eran Zinmanhttps://www.monday.com

monday.com Ltd., together with its subsidiaries, develops software applications in the United States, Europe, the Middle East, Africa, and internationally. It provides Work OS, a cloud-based visual work operating system that consists of modular building blocks used and assembled to create software applications and work management tools. The company also offers product solutions for marketing, CRM, project management, software development, and other fields; and business development, presale, and customer success services.

monday.com Fundamentals Summary

How do monday.com's earnings and revenue compare to its market cap?
MNDY fundamental statistics
Market CapUS$6.37b
Earnings (TTM)-US$173.80m
Revenue (TTM)US$410.78m

15.5x

P/S Ratio

-36.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MNDY income statement (TTM)
RevenueUS$410.78m
Cost of RevenueUS$53.32m
Gross ProfitUS$357.46m
Other ExpensesUS$531.26m
Earnings-US$173.80m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-3.85
Gross Margin87.02%
Net Profit Margin-42.31%
Debt/Equity Ratio0%

How did MNDY perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is MNDY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MNDY?

Other financial metrics that can be useful for relative valuation.

MNDY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue13.6x
Enterprise Value/EBITDA-32.8x
PEG Ration/a

Price to Sales Ratio vs Peers

How does MNDY's PS Ratio compare to its peers?

MNDY PS Ratio vs Peers
The above table shows the PS ratio for MNDY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average11.8x
CYBR CyberArk Software
11.8x20.3%US$6.1b
SAIL SailPoint Technologies Holdings
12.3x19.9%US$6.1b
MNDT Mandiant
10.3x19.4%US$5.4b
QLYS Qualys
12.8x13.9%US$5.7b
MNDY monday.com
15.5x30.4%US$6.4b

Price-To-Sales vs Peers: MNDY is expensive based on its Price-To-Sales Ratio (15.5x) compared to the peer average (11.8x).


Price to Earnings Ratio vs Industry

How does MNDY's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Sales vs Industry: MNDY is expensive based on its Price-To-Sales Ratio (15.5x) compared to the US Software industry average (5.2x)


Price to Sales Ratio vs Fair Ratio

What is MNDY's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MNDY PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio15.5x
Fair PS Ratio17.5x

Price-To-Sales vs Fair Ratio: MNDY is good value based on its Price-To-Sales Ratio (15.5x) compared to the estimated Fair Price-To-Sales Ratio (17.5x).


Share Price vs Fair Value

What is the Fair Price of MNDY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MNDY ($141.22) is trading above our estimate of fair value ($60.52)

Significantly Below Fair Value: MNDY is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is monday.com forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-4.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: MNDY's revenue (30.4% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: MNDY's revenue (30.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


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Past Performance

How has monday.com performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


8.2%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: MNDY is currently unprofitable.

Growing Profit Margin: MNDY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if MNDY's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: MNDY is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.5%).


Return on Equity

High ROE: MNDY has a negative Return on Equity (-27.07%), as it is currently unprofitable.


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Financial Health

How is monday.com's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: MNDY's short term assets ($868.4M) exceed its short term liabilities ($267.9M).

Long Term Liabilities: MNDY's short term assets ($868.4M) exceed its long term liabilities ($49.7M).


Debt to Equity History and Analysis

Debt Level: MNDY is debt free.

Reducing Debt: MNDY had no debt 5 years ago.


Balance Sheet


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: MNDY has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MNDY has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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Dividend

What is monday.com current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MNDY has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Eran Zinman (39 yo)

1.75yrs

Tenure

Mr. Eran Zinman is Co-Founder of monday.com Ltd. and has been its Co-Chief Executive Officer since November 2020 and Director since March 2018 and was its Chief Technology Officer between 2012 and 2020. He...


Leadership Team

Experienced Management: MNDY's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: MNDY's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

monday.com Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: monday.com Ltd.
  • Ticker: MNDY
  • Exchange: NasdaqGS
  • Founded: 2012
  • Industry: Systems Software
  • Sector: Software
  • Implied Market Cap: US$6.367b
  • Shares outstanding: 45.09m
  • Website: https://www.monday.com

Number of Employees


Location

  • monday.com Ltd.
  • 6 Yitzhak Sadeh Street
  • Tel Aviv
  • 6777506
  • Israel

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.