AvePoint, Inc. (AVPT) Stock Analysis and Metrics

Sector: Technology Industry: Software - Infrastructure CIK: 0001777921

P/B 4.95

P/E 1,172.94

P/S 5.86

Market Cap 2.31 Bn

ROIC (Qtr) 5.09

Div Yield % 0.00

Rev 1y % (Qtr) 23.56

Total Debt (Qtr) 11.34 Mn

Debt/Equity (Qtr) 0.02

About

AvePoint, Inc. (AVPT) operates as a cloud-native data management software platform, facilitating organizations to manage and protect critical data, optimize IT operations, and efficiently secure the digital workplace. The company's offerings consist of the AvePoint Confidence Platform, which includes three interconnected suites: the Control Suite, the Resilience Suite, and the Modernization Suite. These suites provide automated governance, policy enforcement, data protection, business continuity, and digital transformation services. AvePoint's key...

AvePoint, Inc. (AVPT) operates as a cloud-native data management software platform, facilitating organizations to manage and protect critical data, optimize IT operations, and efficiently secure the digital workplace. The company's offerings consist of the AvePoint Confidence Platform, which includes three interconnected suites: the Control Suite, the Resilience Suite, and the Modernization Suite. These suites provide automated governance, policy enforcement, data protection, business continuity, and digital transformation services. AvePoint's key competitive advantage is its comprehensive platform offering, which outperforms competitors' standalone point solutions in terms of functionality, ease of use, scalability, security, integration, time to value, and total cost of ownership.

AvePoint's business activities revolve around developing and marketing its Software-as-a-Service (SaaS) solutions and productivity applications for the digital workplace. The company caters to a global clientele, with over 2,500 employees and customers in more than 100 countries. These customers include organizations of all sizes and industries. AvePoint's growth strategy emphasizes expanding platform offerings, increasing market presence, growing and cultivating the partner and channel network, and pursuing strategic acquisitions and investments.

Revenue generation for AvePoint comes from its three interconnected suites of functionality. The Control Suite offers a ready-made framework for automated governance and policy enforcement, helping infrastructure and operations teams protect business-critical information. The Resilience Suite focuses on data protection regulations, record preservation, and business continuity. Lastly, the Modernization Suite transforms legacy data and business processes for use with modern SaaS platforms.

AvePoint's competitive positioning is further strengthened by its commitment to responsible AI use, as well as its robust corporate governance practices. The company has implemented robust AI training, policies, and procedures, and is a founding member of the AI Trust Foundation. In terms of corporate governance, AvePoint adheres to the highest principles of business ethics and applicable laws. This commitment includes having a majority of independent directors and transparently available Code of Ethics and Business Conduct.

Investors can find information about AvePoint at its Investor Relations website, including annual reports, quarterly reports, current reports, and amendments filed with or furnished to the SEC. AvePoint's executive officers include Xunkai Gong, Tianyi Jiang, Brian Michael Brown, and James Caci, who are responsible for overseeing the company's principal executive and operating offices located in New Jersey and Virginia.

Stock Price Chart

Analysis

Pros

Strong operating cash flow of 88.36M provides robust 7.79x coverage of total debt 11.34M, indicating excellent debt servicing capability and financial flexibility.
Operating cash flow of 88.36M provides exceptional 269.38x coverage of minority interest expenses 328000, showing strong core operations.
Strong tangible asset base of 693.26M provides 61.11x coverage of total debt 11.34M, indicating robust asset backing and low credit risk.
Robust free cash flow of 83.20M exceeds capital expenditure of 5.15M by 16.15x, indicating strong organic growth funding capability.
Cash position of 471.64M provides exceptional 1437.93x coverage of minority interest expenses 328000, indicating strong liquidity.

Cons

Operating cash flow of 88.36M barely covers its investment activities of (32.42M), with a coverage ratio of -2.73, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of (32.42M) provide weak support for R&D spending of 52.46M, which is -0.62x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Cash reserves of 471.64M provide limited coverage of acquisition spending of (14.89M), which is -31.67x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
Operating cash flow of 88.36M provides insufficient coverage of deferred revenue obligations of 174.20M, which is 0.51x, raising concerns about future service delivery capabilities.
The company's operating cash flow of 88.36M shows concerning coverage of stock compensation expenses of 40.69M, with a 2.17 ratio indicating potential earnings quality issues.

Peer Comparison

Companies in the Software - Infrastructure

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	MSFT	Microsoft Corp	3,542.10 Bn	33.76	12.06	60.56 Bn
2	ORCL	Oracle Corp	533.93 Bn	34.61	8.75	124.39 Bn
3	PLTR	Palantir Technologies Inc.	437.56 Bn	399.47	112.31	0.24 Bn
4	PANW	Palo Alto Networks Inc	125.16 Bn	112.03	13.10	0.35 Bn
5	CRWD	CrowdStrike Holdings, Inc.	120.85 Bn	-384.67	26.47	0.82 Bn
6	SNPS	Synopsys Inc	71.69 Bn	35.89	11.14	15.14 Bn
7	NET	Cloudflare, Inc.	67.84 Bn	-658.43	33.70	3.50 Bn
8	FTNT	Fortinet, Inc.	63.33 Bn	33.80	9.66	1.00 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	2.65	2.56
EV to Cash from Ops.	22.31	38.32
EV to Debt	173.74	-11.37
EV to EBIT	351.87	-12.79
EV to EBITDA	53.18	7.72
EV to Free Cash Flow [EV/FCF]	23.69	24.22
EV to Market Cap	0.85	0.58
EV to Revenue	5.00	-35.00
Price to Book Value [P/B]	4.95	3.74
Price to Earnings [P/E]	1,172.94	-18.61

Dividend Metrics

Metric	Value	Industry	Percentile
Dividend Coverage Ratio	0.00	-0.30
Dividend Payout Ratio %	0.00	2.69
Dividend per Basic Share	0.00	0.10
FCF Dividend Payout Ratio %	0.00	1.67
Interest Coverage	0.00	-13.15

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-19.70	-404.11
Cash and Equivalents Growth (1y) %	88.80	226.02
Dividend Growth (1y) %	0.00	-0.27
EBIAT Growth (1y) %	125.80	31.15
EBITDA Growth (1y) %	157.84	49.02
EBIT Growth (1y) %	183.46	25.85
EBT Growth (1y) %	183.46	17.82
EPS Growth (1y) %	0.00	70.69
FCF Growth (1y) %	13.61	295.45
Gross Profit Growth (1y) %	24.54	49.96

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.53	0.68
Cash Payout Ratio	0.00	0.02
Cash Ratio	1.93	1.21
Current Ratio	2.37	2.57
Debt to Equity Ratio	0.02	-0.93
Interest Cover Ratio	0.00	-13.15
Times Interest Earned	0.00	-13.15

Profitability

Metric	Value	Industry
EBITDA Margin %	4.90	-544.82
EBIT Margin %	1.42	-197.78
EBT Margin %	1.42	-602.74
Gross Margin %	74.50	52.06
Net Profit Margin %	0.50	-605.52

AvePoint, Inc. (NASDAQ: AVPT)