NYSE:AVLR

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Executive Summary

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


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

0.2%

AVLR

1.7%

US Software

2.1%

US Market


1 Year Return

116.0%

AVLR

45.4%

US Software

19.8%

US Market

Return vs Industry: AVLR exceeded the US Software industry which returned 45.2% over the past year.

Return vs Market: AVLR exceeded the US Market which returned 19.7% over the past year.


Shareholder returns

AVLRIndustryMarket
7 Day0.2%1.7%2.1%
30 Day12.5%2.7%8.1%
90 Day28.8%-0.6%6.0%
1 Year116.0%116.0%46.3%45.4%22.5%19.8%
3 Yearn/a138.9%131.3%46.5%36.8%
5 Yearn/a226.2%208.9%96.9%75.3%

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

Valuation

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

13.35x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AVLR ($166.45) is trading above our estimate of fair value ($56.23)

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 (13.2x) compared to the US Software industry average (8x).


Next Steps

Future Growth

How is Avalara forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-4.3%

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 (20.2% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: AVLR's revenue (20.2% 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 (8.9%).


Return on Equity

High ROE: AVLR has a negative Return on Equity (-4.73%), as it is currently unprofitable.


Next Steps

  • Explore strong past performing companies in the Software industry.

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?

1.3yrs

Average management tenure


CEO

Scott McFarlane (62 yo)

13.75yrs

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 ($USD10.98M) is about average for companies of similar size in the US market ($USD10.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Scott McFarlane
Co-Founder13.75yrsUS$10.98m0.91%
$ 129.4m
Amit Mathradas
President & COO1.67yrsUS$7.31m0.12%
$ 16.7m
Jared Vogt
Co-Founder & Member of Advisory Board1.83yrsUS$1.26mno data
Alesia Pinney
Executive VP7.58yrsUS$1.84m0.041%
$ 5.9m
Ross Tennenbaum
CFO & Treasurer0.58yrno data0.082%
$ 11.6m
Daniel Manning
Chief Accounting Officerno datano data0.013%
$ 1.9m
Daniel Fields
Executive VP of Engineering & CTO2.5yrsno datano data
Jennifer Gianola
Vice President of Investor Relations0.33yrno datano data
Greg Stivers
Senior Vice President of Salesno datano datano data
Jay Lee
Chief Marketing Officer1yrno datano data
Jayme Fishman
Executive Vice President of Corporate Development0.25yrno datano data
Kathleen Weslock
Chief People Officer0.33yrno datano data

1.3yrs

Average Tenure

51yo

Average Age

Experienced Management: AVLR's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Scott McFarlane
Co-Founder13.75yrsUS$10.98m0.91%
$ 129.4m
Jared Vogt
Co-Founder & Member of Advisory Board1.83yrsUS$1.26mno data
Edward Gilhuly
Independent Director9.67yrsUS$186.31k0.26%
$ 37.2m
Stephen Arnold
Member of Advisory Boardno datano datano data
Tami Reller
Independent Director6.33yrsUS$184.55k0.080%
$ 11.3m
Rajeev Singh
Lead Independent Director1.08yrsUS$189.76k0.026%
$ 3.7m
William Harris
Member of Advisory Boardno datano datano data
William Ingram
Director0.83yrUS$3.87m0.0021%
$ 292.2k
Chelsea Stoner
Independent Director8.42yrsUS$189.55k0.076%
$ 10.9m
Bill Baker
Member of Advisory Boardno datano datano data
Marion Foote
Independent Director9.5yrsUS$197.05k0.61%
$ 86.4m
Kathleen Zwickert
Independent Director1.83yrsUS$305.21k0.0026%
$ 367.7k

6.3yrs

Average Tenure

60yo

Average Age

Experienced Board: AVLR's board of directors are considered experienced (6.3 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$14.252b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVLRNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2018
0A0SLSE (London Stock Exchange)YesCommon StockGBEURJun 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 00:32
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.