ATLASSIAN CORP-CL A (TEAM)
US0494681010 - Common Stock
We assign a fundamental rating of 5 out of 10 to TEAM. TEAM was compared to 277 industry peers in the Software industry. TEAM scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. TEAM is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year TEAM was profitable.
TEAM had a positive operating cash flow in the past year.
TEAM had negative earnings in each of the past 5 years.
Each year in the past 5 years TEAM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -8.64%, TEAM is in line with its industry, outperforming 46.18% of the companies in the same industry.
With a Return On Equity value of -42.47%, TEAM is not doing good in the industry: 64.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.64% | ||
| ROE | -42.47% | ||
| ROIC | N/A |
ROA(3y)-15.71%
ROA(5y)-15.51%
ROE(3y)-143.12%
ROE(5y)-120.61%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 81.97%, TEAM belongs to the top of the industry, outperforming 88.73% of the companies in the same industry.
In the last couple of years the Gross Margin of TEAM has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for TEAM so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 81.97% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.41%
GM growth 5Y0.48%
2. Health
2.1 Basic Checks
TEAM does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, TEAM has more shares outstanding
TEAM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TEAM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.97 indicates that TEAM is not in any danger for bankruptcy at the moment.
TEAM has a Altman-Z score of 6.97. This is in the better half of the industry: TEAM outperforms 77.45% of its industry peers.
The Debt to FCF ratio of TEAM is 0.92, which is an excellent value as it means it would take TEAM, only 0.92 years of fcf income to pay off all of its debts.
TEAM's Debt to FCF ratio of 0.92 is fine compared to the rest of the industry. TEAM outperforms 76.36% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that TEAM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.04, TEAM is doing worse than 76.00% of the companies in the same industry.
Although TEAM does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | 6.97 |
ROIC/WACCN/A
WACC10.39%
2.3 Liquidity
TEAM has a Current Ratio of 1.07. This is a normal value and indicates that TEAM is financially healthy and should not expect problems in meeting its short term obligations.
TEAM's Current ratio of 1.07 is on the low side compared to the rest of the industry. TEAM is outperformed by 74.18% of its industry peers.
TEAM has a Quick Ratio of 1.07. This is a normal value and indicates that TEAM is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TEAM (1.07) is worse than 73.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 75.31% over the past year.
Measured over the past years, TEAM shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.95% on average per year.
Looking at the last year, TEAM shows a very strong growth in Revenue. The Revenue has grown by 26.11%.
TEAM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 32.03% yearly.
EPS 1Y (TTM)75.31%
EPS 3Y18.63%
EPS 5Y31.95%
EPS Q2Q%64.81%
Revenue 1Y (TTM)26.11%
Revenue growth 3Y29.86%
Revenue growth 5Y32.03%
Sales Q2Q%29.9%
3.2 Future
Based on estimates for the next years, TEAM will show a very strong growth in Earnings Per Share. The EPS will grow by 30.13% on average per year.
TEAM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.47% yearly.
EPS Next Y52.85%
EPS Next 2Y32.1%
EPS Next 3Y30.92%
EPS Next 5Y30.13%
Revenue Next Year23.98%
Revenue Next 2Y21.24%
Revenue Next 3Y21.55%
Revenue Next 5Y22.47%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 55.23, TEAM can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as TEAM.
The average S&P500 Price/Earnings ratio is at 28.05. TEAM is valued rather expensively when compared to this.
TEAM is valuated quite expensively with a Price/Forward Earnings ratio of 46.82.
TEAM's Price/Forward Earnings is on the same level as the industry average.
TEAM is valuated expensively when we compare the Price/Forward Earnings ratio to 20.07, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.23 | ||
| Fwd PE | 46.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TEAM indicates a somewhat cheap valuation: TEAM is cheaper than 64.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.25 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as TEAM's earnings are expected to grow with 30.92% in the coming years.
PEG (NY)1.05
PEG (5Y)1.73
EPS Next 2Y32.1%
EPS Next 3Y30.92%
5. Dividend
5.1 Amount
TEAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ATLASSIAN CORP-CL A
NASDAQ:TEAM (5/31/2024, 7:08:42 PM)
After market: 156.86 0 (0%)156.86
-3.53 (-2.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap40.83B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.23 | ||
| Fwd PE | 46.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.05
PEG (5Y)1.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.64% | ||
| ROE | -42.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 81.97% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)75.31%
EPS 3Y18.63%
EPS 5Y
EPS Q2Q%
EPS Next Y52.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)26.11%
Revenue growth 3Y29.86%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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