Fundamental Analysis of C3.AI INC-A(NYSE:AI) stock

Fundamental Rating

AI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 276 industry peers in the Software industry. No worries on liquidiy or solvency for AI as it has an excellent financial health rating, but there are worries on the profitability. AI is valied quite expensively at the moment, while it does show a decent growth rate.

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1. Profitability

1.1 Basic Checks

In the past year AI has reported negative net income.

AI had a negative operating cash flow in the past year.

AI had negative earnings in each of the past 5 years.

In the past 5 years AI always reported negative operating cash flow.

1.2 Ratios

AI's Return On Assets of -25.54% is on the low side compared to the rest of the industry. AI is outperformed by 71.53% of its industry peers.

With a Return On Equity value of -30.26%, AI perfoms like the industry average, outperforming 44.16% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	-25.54%
ROE	-30.26%
ROIC	N/A

ROA(3y)-15.14%

ROA(5y)-16.13%

ROE(3y)-17.86%

ROE(5y)-21.63%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

AI's Gross Margin of 58.86% is on the low side compared to the rest of the industry. AI is outperformed by 60.22% of its industry peers.

In the last couple of years the Gross Margin of AI has declined.

AI does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	58.86%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-3.48%

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

AI does not have a ROIC to compare to the WACC, probably because it is not profitable.

Compared to 1 year ago, AI has more shares outstanding

AI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

AI has an Altman-Z score of 8.84. This indicates that AI is financially healthy and has little risk of bankruptcy at the moment.

The Altman-Z score of AI (8.84) is better than 86.86% of its industry peers.

There is no outstanding debt for AI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	N/A
Altman-Z	8.84

ROIC/WACCN/A

WACC9.93%

2.3 Liquidity

AI has a Current Ratio of 8.48. This indicates that AI is financially healthy and has no problem in meeting its short term obligations.

AI has a Current ratio of 8.48. This is amongst the best in the industry. AI outperforms 95.62% of its industry peers.

AI has a Quick Ratio of 8.48. This indicates that AI is financially healthy and has no problem in meeting its short term obligations.

With an excellent Quick ratio value of 8.48, AI belongs to the best of the industry, outperforming 95.62% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	8.48
Quick Ratio	8.48

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

AI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.00%.

AI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.13%.

The Revenue has been growing by 19.41% on average over the past years. This is quite good.

EPS 1Y (TTM)4%

EPS 3YN/A

EPS 5YN/A

EPS growth Q2Q-116.67%

Revenue 1Y (TTM)11.13%

Revenue growth 3Y19.41%

Revenue growth 5YN/A

Revenue growth Q2Q17.6%

3.2 Future

AI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.73% yearly.

AI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.45% yearly.

EPS Next Y-62.21%

EPS Next 2Y0.95%

EPS Next 3Y22.14%

EPS Next 5Y32.73%

Revenue Next Year16.07%

Revenue Next 2Y17.62%

Revenue Next 3Y18.75%

Revenue Next 5Y26.45%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for AI. In the last year negative earnings were reported.

Also next year AI is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

AI's earnings are expected to grow with 22.14% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y0.95%

EPS Next 3Y22.14%

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5. Dividend

5.1 Amount

No dividends for AI!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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C3.AI INC-A

NYSE:AI (5/1/2024, 7:04:00 PM)

After market: 22.99 +0.3 (+1.32%)

22.69

+0.16 (+0.71%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupSoftware & Services

GICS IndustrySoftware

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap2.77B

Analysts

Price Target

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Dividend Growth(5Y)

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

Max EPS beat(2)

EPS beat(4)

Avg EPS beat(4)

Min EPS beat(4)

Max EPS beat(4)

EPS beat(8)

Avg EPS beat(8)

EPS beat(12)

Avg EPS beat(12)

EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

Max Revenue beat(2)

Revenue beat(4)

Avg Revenue beat(4)

Min Revenue beat(4)

Max Revenue beat(4)

Revenue beat(8)

Avg Revenue beat(8)

Revenue beat(12)

Avg Revenue beat(12)

Revenue beat(16)

Avg Revenue beat(16)

PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA

EPS(TTM)

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-25.54%
ROE	-30.26%
ROCE
ROIC
ROICexc
ROICexgc
OM	N/A
PM (TTM)	N/A
GM	58.86%
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 Turnover0.28

Health

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio	8.48
Quick Ratio	8.48
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)

Growth

EPS 1Y (TTM)4%

EPS 3YN/A

EPS 5Y

EPS growth Q2Q

EPS Next Y-62.21%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)11.13%

Revenue growth 3Y19.41%

Revenue growth 5Y

Revenue growth 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

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y

C3.AI INC-A (AI)

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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