| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 5/6 |
| Past Performance | 0/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
TEAM Overview
Atlassian Corporation Plc, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide.
Rewards
Risk Analysis
No risks detected for TEAM from our risk checks.
Atlassian Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$429.01 |
| 52 Week High | US$176.42 |
| 52 Week Low | US$431.44 |
| Beta | 0.80 |
| 1 Month Change | 3.64% |
| 3 Month Change | 61.91% |
| 1 Year Change | 107.05% |
| 3 Year Change | 522.39% |
| 5 Year Change | 1,497.21% |
| Change since IPO | 1,444.31% |
Recent News & Updates
Atlassian (NASDAQ:TEAM) Seems To Use Debt Rather Sparingly
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Atlassian: Why Investors Are Not Put Off By Its High Valuation
Atlassian continues to steadily grow at more than 30% CAGR. Atlassian's ability to generate strong free cash flows is where the bullish thesis lies. The stock isn't cheap at 34x forward sales. But Atlassian has never been a cheap stock either.
Atlassian: A Great Investment In Bull Markets, And A Poor One In Corrections
Shares of Atlassian have soared to previously unsurmounted heights as the company continues to achieve impressive results. Revenue growth has sustained above 30% y/y, a true feat for a company at a $2 billion annual run rate, while subscription growth exceeds 50% y/y. At the same time, Atlassian also remains a rich margin company, owing to its minimal use of expensive direct sales forces. At the same time, there is a cost to this excellence, and Atlassian is one of the most expensive stocks in the software sector at ~40x revenue.
When Should You Buy Atlassian Corporation Plc (NASDAQ:TEAM)?
Let's talk about the popular Atlassian Corporation Plc ( NASDAQ:TEAM ). The company's shares saw a significant share...
Why You Shouldn't Buy Atlassian
TEAM is a high quality tech stock with a highly regarded product offering. The company has paired robust growth with solid free cash flow, a promising recipe for gaining Wall Street's affection. After the stock's recent 50% run higher, TEAM has jumped to dangerous valuations. I examine the stock using aggressive, long-term estimates to show deep overvaluation.
Shareholder Returns
| TEAM | US Software | US Market | |
|---|---|---|---|
| 7D | 3.4% | 1.7% | 1.9% |
| 1Y | 107.1% | 40.7% | 33.4% |
Return vs Industry: TEAM exceeded the US Software industry which returned 37% over the past year.
Return vs Market: TEAM exceeded the US Market which returned 30.3% over the past year.
Price Volatility
| TEAM volatility | |
|---|---|
| TEAM Beta | 0.80 |
| Industry Beta | 0.97 |
| Market Beta | 1 |
Stable Share Price: TEAM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: TEAM's weekly volatility (7%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2002 | 6,433 | Mike Cannon-Brookes | https://www.atlassian.com |
Atlassian Corporation Plc, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. Its products include JIRA, a workflow management system for teams to plan, track, collaborate, and manage work, and projects; Jira Service Management, a service desk product for creating and managing service experiences for various service team providers, including IT, legal, and HR teams; Jira Align for enterprise agile planning; Opsgenie, an incident management tool that centralizes alerts and notifies right people at right time; and Statuspage for incident communication. The company also provides Confluence, a remote-friendly team workspace used to build, organize, and collaborate on work virtually for team content creation and sharing; and Trello, a collaboration product, that manages projects, organizes tasks, and builds team spirit for capturing and adding structure to fluid, fast-forming work for teams.
Atlassian Fundamentals Summary
| TEAM fundamental statistics | |
|---|---|
| Market Cap | US$108.43b |
| Earnings (TTM) | -US$696.31m |
| Revenue (TTM) | US$2.09b |
51.9x
P/S Ratio-155.7x
P/E RatioIs TEAM overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| TEAM income statement (TTM) | |
|---|---|
| Revenue | US$2.09b |
| Cost of Revenue | US$334.31m |
| Gross Profit | US$1.75b |
| Expenses | US$2.45b |
| Earnings | -US$696.31m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Oct 28, 2021
| Earnings per share (EPS) | -2.75 |
| Gross Margin | 84.00% |
| Net Profit Margin | -33.33% |
| Debt/Equity Ratio | 118.3% |
How did TEAM perform over the long term?
See historical performance and comparisonValuation
Is Atlassian undervalued compared to its fair value and its price relative to the market?
0.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TEAM ($429.01) is trading below our estimate of fair value ($431.97)
Significantly Below Fair Value: TEAM is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: TEAM is unprofitable, so we can't compare its PE Ratio to the US Software industry average.
PE vs Market: TEAM is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate TEAM's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: TEAM is overvalued based on its PB Ratio (367.7x) compared to the US Software industry average (7.1x).
Future Growth
How is Atlassian forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
137.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TEAM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: TEAM is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: TEAM's is expected to become profitable in the next 3 years.
Revenue vs Market: TEAM's revenue (18% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: TEAM's revenue (18% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TEAM's Return on Equity is forecast to be high in 3 years time (37.1%)
Past Performance
How has Atlassian performed over the past 5 years?
-54.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TEAM is currently unprofitable.
Growing Profit Margin: TEAM is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: TEAM is unprofitable, and losses have increased over the past 5 years at a rate of 54.4% per year.
Accelerating Growth: Unable to compare TEAM's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: TEAM is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (24.1%).
Return on Equity
High ROE: TEAM has a negative Return on Equity (-236.11%), as it is currently unprofitable.
Financial Health
How is Atlassian's financial position?
Financial Position Analysis
Short Term Liabilities: TEAM's short term assets ($1.6B) do not cover its short term liabilities ($2.3B).
Long Term Liabilities: TEAM's short term assets ($1.6B) exceed its long term liabilities ($340.4M).
Debt to Equity History and Analysis
Debt Level: TEAM's debt to equity ratio (118.3%) is considered high.
Reducing Debt: Insufficient data to determine if TEAM's debt to equity ratio has reduced over the past 5 years.
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: Whilst unprofitable TEAM has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: TEAM is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 35.1% per year.
Dividend
What is Atlassian current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate TEAM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate TEAM'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 TEAM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if TEAM'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 TEAM's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Mike Cannon-Brookes (42 yo)
19yrs
Tenure
US$61,462
Compensation
Mr. Michael Cannon-Brookes, also known as Mike, is a Co-Founder of Atlassian Corporation Plc and has been its Co-Chief Executive Officer since October 2002. He serves on the board of directors of Zoox Inc....
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD61.46K) is below average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Mike's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: TEAM's management team is considered experienced (2.8 years average tenure).
Board Members
Experienced Board: TEAM's board of directors are considered experienced (7 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 not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Atlassian Corporation Plc's employee growth, exchange listings and data sources
Key Information
- Name: Atlassian Corporation Plc
- Ticker: TEAM
- Exchange: NasdaqGS
- Founded: 2002
- Industry: Application Software
- Sector: Software
- Market Cap: US$108.433b
- Shares outstanding: 252.75m
- Website: https://www.atlassian.com
Number of Employees
Location
- Atlassian Corporation Plc
- 341 George Street
- Level 6
- Sydney
- New South Wales
- 2000
- Australia
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/25 23:23 |
| End of Day Share Price | 2021/10/25 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
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.