MNDY Stock Overview
monday.com Ltd., together with its subsidiaries, develops software applications in the United States, Europe, the Middle East, Africa, and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$141.22|
|52 Week High||US$450.00|
|52 Week Low||US$85.75|
|1 Month Change||31.14%|
|3 Month Change||41.57%|
|1 Year Change||-41.42%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-21.05%|
Recent News & Updates
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.
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.
|MNDY||US Software||US Market|
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.
|MNDY Average Weekly Movement||14.8%|
|Software Industry Average Movement||10.7%|
|Market Average Movement||7.9%|
|10% most volatile stocks in US Market||17.2%|
|10% least volatile stocks in US Market||3.2%|
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
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
|MNDY fundamental statistics|
Is MNDY overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|MNDY income statement (TTM)|
|Cost of Revenue||US$53.32m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-3.85|
|Net Profit Margin||-42.31%|
How did MNDY perform over the long term?See historical performance and comparison
Is MNDY undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is MNDY's n/a Ratio?|
Price to Sales Ratio vs Peers
How does MNDY's PS Ratio compare to its peers?
|MNDY PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
CYBR CyberArk Software
SAIL SailPoint Technologies Holdings
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.
|Current PS Ratio||15.5x|
|Fair PS Ratio||17.5x|
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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How is monday.com forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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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How has monday.com performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
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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How is monday.com's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
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.
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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What is monday.com current dividend yield, its reliability and sustainability?
Dividend Score 0/6
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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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Eran Zinman (39 yo)
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...
Experienced Management: MNDY's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Experienced Board: MNDY's board of directors are considered experienced (5.3 years average tenure).
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.
monday.com Ltd.'s employee growth, exchange listings and data sources
- 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
- monday.com Ltd.
- 6 Yitzhak Sadeh Street
- Tel Aviv
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/10 00:00|
|End of Day Share Price||2022/08/10 00:00|
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.