Avalara Inc (AVLR) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:AVLR • US05338G1067

93.48 USD
+0.03 (+0.03%)
At close: Oct 18, 2022
93.49 USD
+0.01 (+0.01%)
After Hours: 10/18/2022, 8:04:00 PM
Fundamental Rating

3

Overall AVLR gets a fundamental rating of 3 out of 10. We evaluated AVLR against 278 industry peers in the Software industry. AVLR has a bad profitability rating. Also its financial health evaluation is rather negative. AVLR is valued quite expensively, but it does show have an excellent growth rating.


Dividend Valuation Growth Profitability Health

0

1. Profitability

1.1 Basic Checks

  • In the past year AVLR has reported negative net income.
  • AVLR had a positive operating cash flow in the past year.
AVLR Yearly Net Income VS EBIT VS OCF VS FCFAVLR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 -50M -100M

1.2 Ratios

Industry RankSector Rank
ROA -6.29%
ROE N/A
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
AVLR Yearly ROA, ROE, ROICAVLR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 100 -100 200 -200

1.3 Margins

Industry RankSector Rank
OM -19.73%
PM (TTM) -21.08%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
AVLR Yearly Profit, Operating, Gross MarginsAVLR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 20 -20 40 60

3

2. Health

2.1 Basic Checks

  • AVLR does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • AVLR has more shares outstanding than it did 1 year ago.
  • AVLR has a worse debt/assets ratio than last year.
AVLR Yearly Shares OutstandingAVLR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 20M 40M 60M 80M
AVLR Yearly Total Debt VS Total AssetsAVLR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • An Altman-Z score of 3.29 indicates that AVLR is not in any danger for bankruptcy at the moment.
  • AVLR has a Debt/Equity ratio of 0.94. This is a neutral value indicating AVLR is somewhat dependend on debt financing.
Industry RankSector Rank
Debt/Equity 0.94
Debt/FCF N/A
Altman-Z 3.29
ROIC/WACCN/A
WACC11.29%
AVLR Yearly LT Debt VS Equity VS FCFAVLR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • AVLR has a Current Ratio of 3.18. This indicates that AVLR is financially healthy and has no problem in meeting its short term obligations.
  • A Quick Ratio of 3.18 indicates that AVLR has no problem at all paying its short term obligations.
Industry RankSector Rank
Current Ratio 3.18
Quick Ratio 3.18
AVLR Yearly Current Assets VS Current LiabilitesAVLR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 500M 1B 1.5B

7

3. Growth

3.1 Past

  • The earnings per share for AVLR have decreased strongly by -160.00% in the last year.
  • The Revenue has grown by 32.60% in the past year. This is a very strong growth!
  • AVLR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.09% yearly.
EPS 1Y (TTM)-160%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-200%
Revenue 1Y (TTM)32.6%
Revenue growth 3Y36.96%
Revenue growth 5Y33.09%
Sales Q2Q%23.38%

3.2 Future

  • Based on estimates for the next years, AVLR will show a very strong growth in Earnings Per Share. The EPS will grow by 103.52% on average per year.
  • Based on estimates for the next years, AVLR will show a very strong growth in Revenue. The Revenue will grow by 21.63% on average per year.
EPS Next Y106.12%
EPS Next 2Y82.58%
EPS Next 3Y94.62%
EPS Next 5Y103.52%
Revenue Next Year25.99%
Revenue Next 2Y23.42%
Revenue Next 3Y22.75%
Revenue Next 5Y21.63%

3.3 Evolution

  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
AVLR Yearly Revenue VS EstimatesAVLR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
AVLR Yearly EPS VS EstimatesAVLR Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1 2 3 4

1

4. Valuation

4.1 Price/Earnings Ratio

  • AVLR reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • With a Price/Forward Earnings ratio of 467.37, AVLR can be considered very expensive at the moment.
  • The average S&P500 Price/Forward Earnings ratio is at 25.57. AVLR is valued rather expensively when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 467.37
AVLR Price Earnings VS Forward Price EarningsAVLR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -1K -2K -3K

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA -69.1
AVLR Per share dataAVLR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • A more expensive valuation may be justified as AVLR's earnings are expected to grow with 94.62% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y82.58%
EPS Next 3Y94.62%

0

5. Dividend

5.1 Amount

  • AVLR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

Avalara Inc / AVLR FAQ

Can you provide the ChartMill fundamental rating for Avalara Inc?

ChartMill assigns a fundamental rating of 4 / 10 to AVLR.


Can you provide the valuation status for Avalara Inc?

ChartMill assigns a valuation rating of 1 / 10 to Avalara Inc (AVLR). This can be considered as Overvalued.


What is the profitability of AVLR stock?

Avalara Inc (AVLR) has a profitability rating of 2 / 10.


What is the expected EPS growth for Avalara Inc (AVLR) stock?

The Earnings per Share (EPS) of Avalara Inc (AVLR) is expected to grow by 106.12% in the next year.