NasdaqGS:TEAM

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 9.9% below its fair value

Revenue is forecast to grow 23.94% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year



Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TEAM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.2%

TEAM

0.2%

US Software

1.1%

US Market


1 Year Return

43.7%

TEAM

28.8%

US Software

17.8%

US Market

Return vs Industry: TEAM exceeded the US Software industry which returned 28.8% over the past year.

Return vs Market: TEAM exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

TEAMIndustryMarket
7 Day-2.2%0.2%1.1%
30 Day1.1%1.3%1.4%
90 Day-3.8%4.0%3.9%
1 Year43.7%43.7%30.7%28.8%20.3%17.8%
3 Year385.3%385.3%125.1%116.1%44.8%35.4%
5 Yearn/a185.0%164.8%71.3%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TEAM ($120.8) is trading below our estimate of fair value ($134.02)

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 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 (42.5x) compared to the US Software industry average (5.7x).


Next Steps

Future Growth

How is Atlassian forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

65.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: TEAM's revenue (23.9% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: TEAM's revenue (23.9% per year) is forecast to grow faster 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 (29.1%)


Next Steps

Past Performance

How has Atlassian performed over the past 5 years?

-85.3%

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 -85.3% 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 (15.8%).


Return on Equity

High ROE: TEAM has a negative Return on Equity (-46.94%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Atlassian's financial position?


Financial Position Analysis

Short Term Liabilities: TEAM's short term assets ($2.1B) do not cover its short term liabilities ($2.3B).

Long Term Liabilities: TEAM's short term assets ($2.1B) exceed its long term liabilities ($299.2M).


Debt to Equity History and Analysis

Debt Level: TEAM's debt to equity ratio (124.2%) 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

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

Debt Coverage by Assets: TEAM's debt is covered by short term assets (assets are 2.5x 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 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 40.4% per year.


Next Steps

Dividend

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

0.023%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years0.02%

Current dividend yield vs market & industry

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

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

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

3.9yrs

Average management tenure


CEO

Mike Cannon-Brookes (40yo)

17.2yrs

Tenure

US$299,986

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. Mr. Cannon-Brookes co-founded Atlassian, Inc. (a ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD299.99K) is below average for companies of similar size in the US market ($USD10.90M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.9yrs

Average Tenure

43yo

Average Age

Experienced Management: TEAM's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

49yo

Average Age

Experienced Board: TEAM's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

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 3%.


Management Team

  • James Beer (58yo)

    Chief Financial Officer

    • Tenure: 1.8yrs
  • Mike Cannon-Brookes (40yo)

    • Tenure: 17.2yrs
    • Compensation: US$299.99k
  • Sri Viswanath (43yo)

    Chief Technology Officer

    • Tenure: 3.9yrs
  • Jay Simons (47yo)

    President

    • Tenure: 8.3yrs
  • Scott Farquhar (39yo)

    Co-Founder

    • Tenure: 17.2yrs
    • Compensation: US$299.99k
  • Ian Lee

    Head of Investor Relations

    • Tenure: 0yrs
  • Gene Liu

    Principal Accounting Officer & Controller

    • Tenure: 1yrs
  • Erika Fisher

    General Counsel

    • Tenure: 0.08yrs
  • Martin Lam

    Senior Manager of Investor Relations

    • Tenure: 0yrs

Board Members

  • Enrique Salem (53yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$275.02k
  • Steve Sordello (50yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$295.02k
  • Rich Wong (49yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$285.02k
  • Shona Brown (53yo)

    Chair of the Board

    • Tenure: 1.7yrs
    • Compensation: US$325.21k
  • Mike Cannon-Brookes (40yo)

    • Tenure: 17.2yrs
    • Compensation: US$299.99k
  • Sasan Goodarzi (51yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$275.29k
  • Heather Fernandez (43yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$275.02k
  • Scott Farquhar (39yo)

    Co-Founder

    • Tenure: 17.2yrs
    • Compensation: US$299.99k
  • Jay Parikh (46yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$275.02k

Company Information

Atlassian Corporation Plc's company bio, 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$29.495b
  • Shares outstanding: 244.17m
  • Website: https://www.atlassian.com

Number of Employees


Location

  • Atlassian Corporation Plc
  • 341 George Street
  • Level 6
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TEAMNasdaqGS (Nasdaq Global Select)YesClass A Ordinary SharesUSUSDDec 2015
59ADB (Deutsche Boerse AG)YesClass A Ordinary SharesDEEURDec 2015
TEAM NBMV (Bolsa Mexicana de Valores)YesClass A Ordinary SharesMXMXNDec 2015

Biography

Atlassian Corporation Plc, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. It provides project tracking, content creation and sharing, and service  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:51
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


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.