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AVLR

Avalara NYSE:AVLR Stock Report

Last Price

US$80.41

Market Cap

US$7.1b

7D

2.5%

1Y

-34.6%

Updated

14 May, 2022

Data

Company Financials +
AVLR fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
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

Price History & Performance

Summary of all time highs, changes and price drops for Avalara
Historical stock prices
Current Share PriceUS$80.41
52 Week HighUS$191.67
52 Week LowUS$67.59
Beta0.93
1 Month Change-12.12%
3 Month Change-20.65%
1 Year Change-34.59%
3 Year Change12.86%
5 Year Changen/a
Change since IPO78.93%

Recent News & Updates

May 07

Avalara: Best Time To Buy This SaaS Leader

Shares of Avalara skyrocketed nearly 10% after posting a fantastic beat-and-raise in Q1, hopefully igniting a rebound trend. The company still enjoys a greenfield market environment for tax automation. With positive pro forma operating margins, Avalara is also a rare SaaS stock that balances strong growth with bottom-line progress. Trading at ~7x forward revenue, Avalara is very favorably valued for a long-term investor.

Shareholder Returns

AVLRUS SoftwareUS Market
7D2.5%-3.8%-2.5%
1Y-34.6%-10.3%-10.4%

Return vs Industry: AVLR underperformed the US Software industry which returned -10.3% over the past year.

Return vs Market: AVLR underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is AVLR's price volatile compared to industry and market?
AVLR volatility
AVLR Average Weekly Movement10.6%
Software Industry Average Movement11.4%
Market Average Movement7.8%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: AVLR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: AVLR's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19994,465Scott 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 Compliance Cloud Returns for tax return preparation, filing, and remittance; which creates, validates, stores, and manages sales tax exemption.

Avalara Fundamentals Summary

How do Avalara's earnings and revenue compare to its market cap?
AVLR fundamental statistics
Market CapUS$7.06b
Earnings (TTM)-US$138.11m
Revenue (TTM)US$749.91m

9.4x

P/S Ratio

-51.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AVLR income statement (TTM)
RevenueUS$749.91m
Cost of RevenueUS$221.97m
Gross ProfitUS$527.93m
Other ExpensesUS$666.04m
Earnings-US$138.11m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-1.57
Gross Margin70.40%
Net Profit Margin-18.42%
Debt/Equity Ratio92.9%

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?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


11.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AVLR ($80.41) is trading below our estimate of fair value ($90.35)

Significantly Below Fair Value: AVLR is trading below fair value, but not by a significant amount.


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 (6.8x) compared to the US Software industry average (3.6x).


Future Growth

How is Avalara forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


42.6%

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 (20% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: AVLR's revenue (20% 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 (4.3%).


Past Performance

How has Avalara performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-13.5%

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 13.5% 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 (29.6%).


Return on Equity

High ROE: AVLR has a negative Return on Equity (-13.33%), as it is currently unprofitable.


Financial Health

How is Avalara's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: AVLR's short term assets ($1.8B) exceed its short term liabilities ($558.1M).

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 57.2% to 92.9% 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 63.8% per year.


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AVLR has not reported any payouts.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Scott McFarlane (64 yo)

23.33yrs

Tenure

US$11,208,434

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 ($USD11.21M) is above average for companies of similar size in the US market ($USD8.22M).

Compensation vs Earnings: Scott's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: AVLR's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: AVLR's board of directors are considered experienced (5.2 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 2.2%.


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
  • Implied Market Cap: US$7.065b
  • Shares outstanding: 87.86m
  • 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 Analysis2022/05/14 00:00
End of Day Share Price2022/05/13 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.