AvePoint, Inc. (NASDAQ: AVPT)

Sector: Technology Industry: Software - Infrastructure CIK: 0001777921
Market Cap 2.30 Bn
P/B 4.92
P/E 1,165.24
P/S 5.83
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...

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Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.63 2.69
EV to Cash from Ops. EV/CFO 22.13 28.91
EV to Debt EV to Debt 172.40 19.83
EV to EBIT EV/EBIT 349.17 -9.95
EV to EBITDA EV/EBITDA 52.77 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 23.50 26.09
EV to Market Cap EV to Market Cap 0.85 0.36
EV to Revenue EV/Rev 4.96 -9.34
Price to Book Value [P/B] P/B 4.92 3.88
Price to Earnings [P/E] P/E 1,165.24 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Interest Coverage 0.00 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -19.70 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 88.80 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 125.80 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 157.84 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 183.46 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 183.46 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 67.50
FCF Growth (1y) % FCF 1y % (Qtr) 13.61 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 24.54 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.53 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 1.93 1.22
Current Ratio Curr Ratio (Qtr) 2.37 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 -0.96
Interest Cover Ratio Interest Cover Ratio 0.00 -14.20
Times Interest Earned Times Interest Earned 0.00 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 4.90 -548.16
EBIT Margin % EBIT Margin % (Qtr) 1.42 -199.84
EBT Margin % EBT Margin % (Qtr) 1.42 -607.20
Gross Margin % Gross Margin % (Qtr) 74.50 51.88
Net Profit Margin % Net Margin % (Qtr) 0.50 -610.00