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AVLR

AvalaraNYSE:AVLR Stock Report

Market Cap

US$12.4b

7D

-5.3%

1Y

-15.9%

Updated

27 Nov, 2021

Data

Company Financials +
AVLR fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance0/6
Financial Health5/6
Dividends0/6

AVLR Stock Overview

Avalara, Inc., together with its subsidiaries, provides cloud-based solutions for transaction tax compliance worldwide.

Avalara Competitors

Bill.com Holdings

NYSE:BILL

US$30.8b

Vertex

NasdaqGM:VERX

US$2.8b

BTRS Holdings

NasdaqGS:BTRS

US$1.2b

Oracle

NYSE:ORCL

US$252.4b

Price History & Performance

Summary of all time highs, changes and price drops for Avalara
Historical stock prices
Current Share PriceUS$142.14
52 Week HighUS$191.67
52 Week LowUS$117.33
Beta0.70
1 Month Change-20.66%
3 Month Change-21.01%
1 Year Change-15.91%
3 Year Change344.33%
5 Year Changen/a
Change since IPO216.29%

Recent News & Updates

Nov 07

Avalara: Risk/Reward Equation Is Well Balanced

Shares of Avalara have traded choppily at all-time highs, after dramatically underperforming the S&P 500 year-to-date. The company is still managing to grow substantially at a ~40% y/y pace, but a fervent pace of acquisitions is helping to keep the optics up. Avalara is taking on an increasing debt load in order to finance its purchases. The stock looks richly valued at 17x forward revenue.

Oct 19

Avalara: Let This Bloated Stock Come Down To Earth

Shares of Avalara have bucked the broader trend in the tech sector, rallying since September while most of its peers have corrected. The main driver is spillover enthusiasm from Avalara's second-quarter earnings release, when the company posted 45% y/y revenue growth - its highest growth quarter on record. Even more impressively, billings kept a 52% y/y pace, indicating that near-term deceleration is unlikely. At the same time, Avalara's huge valuation at nearly 20x next year's revenue makes further upside quite unlikely.

Shareholder Returns

AVLRUS SoftwareUS Market
7D-5.3%-4.9%-2.7%
1Y-15.9%33.7%21.3%

Return vs Industry: AVLR underperformed the US Software industry which returned 33.7% over the past year.

Return vs Market: AVLR underperformed the US Market which returned 21.3% over the past year.

Price Volatility

Is AVLR's price volatile compared to industry and market?
AVLR volatility
AVLR Average Weekly Movement5.1%
Software Industry Average Movement7.4%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: AVLR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AVLR's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19993,351Scott McFarlanehttps://www.avalara.com

Avalara, Inc., together with its subsidiaries, provides cloud-based solutions for transaction tax compliance worldwide. The company offers a suite of compliance solutions that enable businesses to address the complexity of transaction tax compliance; process transactions in real time; produce detailed records of transaction tax determinations; and reduce errors, audit exposure, and total transaction tax compliance costs. The company’s solutions include AvaTax, a solution for determining sales tax in the United States; Avalara Returns for tax return preparation, filing, and remittance; and Avalara Compliance Document Management solution, which creates, validates, stores, and manages sales tax exemption and reseller certificates.

Avalara Fundamentals Summary

How do Avalara's earnings and revenue compare to its market cap?
AVLR fundamental statistics
Market CapUS$12.35b
Earnings (TTM)-US$101.21m
Revenue (TTM)US$648.60m

19.0x

P/S Ratio

-122.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AVLR income statement (TTM)
RevenueUS$648.60m
Cost of RevenueUS$186.97m
Gross ProfitUS$461.63m
ExpensesUS$562.85m
Earnings-US$101.21m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.16
Gross Margin71.17%
Net Profit Margin-15.61%
Debt/Equity Ratio92.7%

How did AVLR perform over the long term?

See historical performance and comparison

Valuation

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

11.93x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AVLR ($142.14) is trading above our estimate of fair value ($22.22)

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


Price To Earnings Ratio

PE vs Industry: AVLR is unprofitable, so we can't compare its PE Ratio to the US Software industry average.

PE vs Market: AVLR 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 AVLR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AVLR is overvalued based on its PB Ratio (11.9x) compared to the US Software industry average (6.4x).


Future Growth

How is Avalara forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: AVLR's revenue (19.8% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: AVLR's revenue (19.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVLR's Return on Equity is forecast to be low in 3 years time (2.6%).


Past Performance

How has Avalara performed over the past 5 years?

-2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVLR is currently unprofitable.

Growing Profit Margin: AVLR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AVLR is unprofitable, and losses have increased over the past 5 years at a rate of 2.4% per year.

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

Earnings vs Industry: AVLR is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (20.5%).


Return on Equity

High ROE: AVLR has a negative Return on Equity (-9.77%), as it is currently unprofitable.


Financial Health

How is Avalara's financial position?


Financial Position Analysis

Short Term Liabilities: AVLR's short term assets ($1.8B) exceed its short term liabilities ($539.0M).

Long Term Liabilities: AVLR's short term assets ($1.8B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: AVLR has more cash than its total debt.

Reducing Debt: AVLR's debt to equity ratio has increased from 50.3% to 92.7% 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 AVLR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AVLR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 66.1% per year.


Dividend

What is Avalara current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate AVLR'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 AVLR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AVLR'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 AVLR'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?

2.3yrs

Average management tenure


CEO

Scott McFarlane (64 yo)

14.75yrs

Tenure

US$9,209,322

Compensation

Mr. Scott M. McFarlane Co-founded Avalara, Inc., in 1999 and has been its Chief Executive Officer since February 2007, Chairman since March 2014 and Director since May 2004. Mr. McFarlane served as Preside...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD9.21M) is about average for companies of similar size in the US market ($USD11.11M).

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


Leadership Team

Experienced Management: AVLR's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: AVLR's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.8%.


Top Shareholders

Company Information

Avalara, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Avalara, Inc.
  • Ticker: AVLR
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$12.354b
  • Shares outstanding: 86.92m
  • Website: https://www.avalara.com

Number of Employees


Location

  • Avalara, Inc.
  • 255 South King Street
  • Suite 1800
  • Seattle
  • Washington
  • 98104
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/27 23:03
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.