ATLASSIAN CORP-CL A (TEAM)
US0494681010 - Common Stock
We assign a fundamental rating of 5 out of 10 to TEAM. TEAM was compared to 276 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 shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
TEAM had positive earnings in the past year.
In the past year TEAM had a positive cash flow from operations.
TEAM had negative earnings in each of the past 5 years.
In the past 5 years TEAM always reported a positive cash flow from operatings.
1.2 Ratios
TEAM has a Return On Assets (-8.64%) which is comparable to the rest of the industry.
The Return On Equity of TEAM (-42.47%) is worse than 62.77% of its industry peers.
| 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
TEAM's Gross Margin of 81.97% is amongst the best of the industry. TEAM outperforms 89.05% of its industry peers.
TEAM's Gross Margin has been stable in the last couple of years.
TEAM 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 | 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.
The number of shares outstanding for TEAM has been increased compared to 1 year ago.
Compared to 5 years ago, TEAM has more shares outstanding
TEAM has a better debt/assets ratio than last year.
2.2 Solvency
TEAM has an Altman-Z score of 8.43. This indicates that TEAM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.43, TEAM belongs to the top of the industry, outperforming 85.04% of the companies in the same industry.
TEAM has a debt to FCF ratio of 0.92. This is a very positive value and a sign of high solvency as it would only need 0.92 years to pay back of all of its debts.
TEAM has a Debt to FCF ratio of 0.92. This is in the better half of the industry: TEAM outperforms 77.01% 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 73.72% 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 | 8.43 |
ROIC/WACCN/A
WACC9.87%
2.3 Liquidity
A Current Ratio of 1.07 indicates that TEAM should not have too much problems paying 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 74.09% of its industry peers.
A Quick Ratio of 1.07 indicates that TEAM should not have too much problems paying its short term obligations.
TEAM has a worse Quick ratio (1.07) than 72.63% 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 60.65% over the past year.
TEAM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.95% yearly.
The Revenue has grown by 22.39% in the past year. This is a very strong growth!
The Revenue has been growing by 32.03% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)60.65%
EPS 3Y18.63%
EPS 5Y31.95%
EPS growth Q2Q62.22%
Revenue 1Y (TTM)22.39%
Revenue growth 3Y29.86%
Revenue growth 5Y32.03%
Revenue growth Q2Q21.47%
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 32.04% on average per year.
Based on estimates for the next years, TEAM will show a very strong growth in Revenue. The Revenue will grow by 22.53% on average per year.
EPS Next Y37.12%
EPS Next 2Y28.95%
EPS Next 3Y29.68%
EPS Next 5Y32.04%
Revenue Next Year20.74%
Revenue Next 2Y20.44%
Revenue Next 3Y21.59%
Revenue Next 5Y22.53%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
Based on the Price/Earnings ratio of 78.02, the valuation of TEAM can be described as expensive.
TEAM's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of TEAM to the average of the S&P500 Index (24.95), we can say TEAM is valued expensively.
Based on the Price/Forward Earnings ratio of 60.85, the valuation of TEAM can be described as expensive.
TEAM's Price/Forward Earnings ratio is in line with the industry average.
TEAM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.02 | ||
| Fwd PE | 60.85 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TEAM is valued a bit cheaper than the industry average as 63.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.21 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TEAM does not grow enough to justify the current Price/Earnings ratio.
TEAM's earnings are expected to grow with 29.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.1
PEG (5Y)2.44
EPS Next 2Y28.95%
EPS Next 3Y29.68%
5. Dividend
5.1 Amount
No dividends for TEAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ATLASSIAN CORP-CL A
NASDAQ:TEAM (4/22/2024, 7:00:01 PM)
After market: 194.09 -0.18 (-0.09%)194.27
+2.72 (+1.42%)
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 Cap50.40B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.02 | ||
| Fwd PE | 60.85 | ||
| 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)2.1
PEG (5Y)2.44
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)
Growth
EPS 1Y (TTM)60.65%
EPS 3Y18.63%
EPS 5Y
EPS growth Q2Q
EPS Next Y37.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.39%
Revenue growth 3Y29.86%
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
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FCF growth 3Y
FCF growth 5Y
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OCF growth 5Y