AVLR Stock Overview
Avalara, Inc., together with its subsidiaries, provides cloud-based solutions for transaction tax compliance worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$142.14|
|52 Week High||US$191.67|
|52 Week Low||US$117.33|
|1 Month Change||-20.66%|
|3 Month Change||-21.01%|
|1 Year Change||-15.91%|
|3 Year Change||344.33%|
|5 Year Change||n/a|
|Change since IPO||216.29%|
Recent News & Updates
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.
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.
|AVLR||US Software||US Market|
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.
|AVLR Average Weekly Movement||5.1%|
|Software Industry Average Movement||7.4%|
|Market Average Movement||6.0%|
|10% most volatile stocks in US Market||15.0%|
|10% least volatile stocks in US Market||2.3%|
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
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
|AVLR fundamental statistics|
Is AVLR overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|AVLR income statement (TTM)|
|Cost of Revenue||US$186.97m|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||-1.16|
|Net Profit Margin||-15.61%|
How did AVLR perform over the long term?See historical performance and comparison
Is Avalara undervalued compared to its fair value and its price relative to the market?
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).
How is Avalara forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
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%).
How has Avalara performed over the past 5 years?
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.
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.
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.
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Scott McFarlane (64 yo)
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.
Experienced Management: AVLR's management team is considered experienced (2.3 years average tenure).
Experienced Board: AVLR's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.8%.
Avalara, Inc.'s employee growth, exchange listings and data sources
- 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
- Avalara, Inc.
- 255 South King Street
- Suite 1800
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/11/27 23:03|
|End of Day Share Price||2021/11/26 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.