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TEAM

AtlassianNasdaqGS:TEAM Stock Report

Market Cap

US$108.4b

7D

3.4%

1Y

107.1%

Updated

25 Oct, 2021

Data

Company Financials +
TEAM fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance0/6
Financial Health3/6
Dividends0/6

TEAM Overview

Atlassian Corporation Plc, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide.

Rewards

Trading at 0.7% below our estimate of its fair value

Earnings are forecast to grow 137.72% per year

Risk Analysis

No risks detected for TEAM from our risk checks.

Atlassian Competitors

salesforce.com

NYSE:CRM

US$287.7b

Splunk

NasdaqGS:SPLK

US$27.2b

Asana

NYSE:ASAN

US$25.1b

Zendesk

NYSE:ZEN

US$15.9b

Price History & Performance

Summary of all time highs, changes and price drops for Atlassian
Historical stock prices
Current Share PriceUS$429.01
52 Week HighUS$176.42
52 Week LowUS$431.44
Beta0.80
1 Month Change3.64%
3 Month Change61.91%
1 Year Change107.05%
3 Year Change522.39%
5 Year Change1,497.21%
Change since IPO1,444.31%

Recent News & Updates

Oct 18
Atlassian (NASDAQ:TEAM) Seems To Use Debt Rather Sparingly

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...

Oct 12

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.

Sep 26

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.

Sep 21
When Should You Buy Atlassian Corporation Plc (NASDAQ:TEAM)?

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...

Sep 09

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

TEAMUS SoftwareUS Market
7D3.4%1.7%1.9%
1Y107.1%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

Is TEAM's price volatile compared to industry and market?
TEAM volatility
TEAM Beta0.80
Industry Beta0.97
Market Beta1

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

FoundedEmployeesCEOWebsite
20026,433Mike Cannon-Brookeshttps://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

How do Atlassian's earnings and revenue compare to its market cap?
TEAM fundamental statistics
Market CapUS$108.43b
Earnings (TTM)-US$696.31m
Revenue (TTM)US$2.09b

51.9x

P/S Ratio

-155.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TEAM income statement (TTM)
RevenueUS$2.09b
Cost of RevenueUS$334.31m
Gross ProfitUS$1.75b
ExpensesUS$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 Margin84.00%
Net Profit Margin-33.33%
Debt/Equity Ratio118.3%

How did TEAM perform over the long term?

See historical performance and comparison

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 23:23
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.