Avalara
Market Cap
US$13.9b
Last Updated
2021/01/24 00:10 UTC
Data Sources
Company Financials +
Executive Summary
Avalara, Inc., together with its subsidiaries, provides cloud-based solutions for transaction tax compliance worldwide. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 8% per year for the next 3 years
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Flawless balance sheet with limited growth.
Similar Companies
Share Price & News
How has Avalara's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AVLR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: AVLR's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
4.3%
AVLR
4.5%
US Software
2.3%
US Market
1 Year Return
99.0%
AVLR
45.1%
US Software
23.7%
US Market
Return vs Industry: AVLR exceeded the US Software industry which returned 45.1% over the past year.
Return vs Market: AVLR exceeded the US Market which returned 23.7% over the past year.
Shareholder returns
| AVLR | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.3% | 4.5% | 2.3% |
| 30 Day | -9.2% | 0.2% | 4.7% |
| 90 Day | 6.1% | 8.1% | 14.5% |
| 1 Year | 99.0%99.0% | 46.0%45.1% | 26.5%23.7% |
| 3 Year | n/a | 126.8%119.4% | 45.0%35.4% |
| 5 Year | n/a | 273.2%252.7% | 126.2%100.9% |
Long-Term Price Volatility Vs. Market
How volatile is Avalara's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Did Avalara, Inc. (NYSE:AVLR) Insiders Sell Shares?2 months ago | Simply Wall St
Avalara, Inc. (NYSE:AVLR) Released Earnings Last Week And Analysts Lifted Their Price Target To US$1752 months ago | Simply Wall St
If You Had Bought Avalara (NYSE:AVLR) Shares A Year Ago You'd Have Earned 105% ReturnsValuation
Is Avalara undervalued compared to its fair value and its price relative to the market?
12.98x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: AVLR ($163.91) is trading above our estimate of fair value ($68.15)
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 (13x) compared to the US Software industry average (9.7x).
Next Steps
Future Growth
How is Avalara forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
-8.0%
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 (20.1% per year) is forecast to grow faster than the US market (10.6% per year).
High Growth Revenue: AVLR's revenue (20.1% per year) is forecast to grow faster 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 (2.4%).
Next Steps
Past Performance
How has Avalara performed over the past 5 years?
6.0%
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, but has reduced losses over the past 5 years at a rate of 6% 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 (14.3%).
Return on Equity
High ROE: AVLR has a negative Return on Equity (-4.73%), as it is currently unprofitable.
Next Steps
Financial Health
How is Avalara's financial position?
Financial Position Analysis
Short Term Liabilities: AVLR's short term assets ($1.2B) exceed its short term liabilities ($296.2M).
Long Term Liabilities: AVLR's short term assets ($1.2B) exceed its long term liabilities ($63.6M).
Debt to Equity History and Analysis
Debt Level: AVLR is debt free.
Reducing Debt: AVLR had no debt 5 years ago.
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 62.3% per year.
Next Steps
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?
1.5yrs
Average management tenure
CEO
Scott McFarlane (62 yo)
13.92yrs
Tenure
US$10,984,004
Compensation
Mr. Scott M. McFarlane Co-founded Avalara, Inc., in 1999 and has been its Chief Executive Officer since February 2007, Chairman since March 2014 and Director since May 2004. Mr. McFarlane served as Preside...
CEO Compensation Analysis
Compensation vs Market: Scott's total compensation ($USD10.98M) is about average for companies of similar size in the US market ($USD10.57M).
Compensation vs Earnings: Scott's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 13.92yrs | US$10.98m | 0.82% $ 113.7m | |
| President & COO | 1.83yrs | US$7.31m | 0.12% $ 16.2m | |
| Co-Founder & Member of Advisory Board | 2yrs | US$1.26m | no data | |
| Executive VP | 7.75yrs | US$1.84m | 0.040% $ 5.5m | |
| CFO & Treasurer | 0.75yr | no data | 0.082% $ 11.3m | |
| Chief Accounting Officer | no data | no data | 0.013% $ 1.7m | |
| Executive VP of Engineering & CTO | 2.67yrs | no data | no data | |
| Vice President of Investor Relations | 0.50yr | no data | no data | |
| Senior Vice President of Sales | no data | no data | no data | |
| Chief Marketing Officer | 1.17yrs | no data | no data | |
| Executive Vice President of Corporate Development | 0.42yr | no data | no data | |
| Chief People Officer | 0.50yr | no data | no data |
1.5yrs
Average Tenure
51yo
Average Age
Experienced Management: AVLR's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 13.92yrs | US$10.98m | 0.82% $ 113.7m | |
| Co-Founder & Member of Advisory Board | 2yrs | US$1.26m | no data | |
| Independent Director | 9.83yrs | US$186.31k | 0.26% $ 36.2m | |
| Member of Advisory Board | no data | no data | no data | |
| Independent Director | 6.5yrs | US$184.55k | 0.080% $ 11.0m | |
| Lead Independent Director | 1.25yrs | US$189.76k | 0.026% $ 3.6m | |
| Member of Advisory Board | no data | no data | no data | |
| Director | 1yr | US$3.87m | 0.0021% $ 284.2k | |
| Independent Director | 8.58yrs | US$189.55k | 0.076% $ 10.6m | |
| Member of Advisory Board | no data | no data | no data | |
| Independent Director | 9.67yrs | US$197.05k | 0.55% $ 76.6m | |
| Independent Director | 2yrs | US$305.21k | 0.0026% $ 357.6k |
6.5yrs
Average Tenure
60yo
Average Age
Experienced Board: AVLR's board of directors are considered experienced (6.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AVLR insiders have only sold shares 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 9.9%.
Top Shareholders
Company Information
Avalara, Inc.'s company bio, 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$13.862b
- Shares outstanding: 84.57m
- Website: https://www.avalara.com
Number of Employees
Location
- Avalara, Inc.
- 255 South King Street
- Suite 1800
- Seattle
- Washington
- 98104
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AVLR | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jun 2018 |
| 0A0S | LSE (London Stock Exchange) | Yes | Common Stock | GB | EUR | Jun 2018 |
Biography
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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/24 00:10 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.