Commerce.com, Inc. (NASDAQ: CMRC)

Sector: Technology Industry: Software - Application CIK: 0001626450
Market Cap 338.38 Mn
P/B 7.90
P/E -25.31
P/S 1.00
ROIC (Qtr) -5.46
Div Yield % 0.00
Rev 1y % (Qtr) 2.77
Total Debt (Qtr) 165.89 Mn
Debt/Equity (Qtr) 3.87

About

BigCommerce Holdings, Inc., commonly recognized by its ticker symbol BIGC, is a prominent player in the software-as-a-service (SaaS) industry. The company specializes in streamlining the development of captivating online stores by offering a unique blend of ease-of-use, enterprise functionality, and flexibility. BigCommerce's platform is designed to empower businesses to harness digital transformation as a competitive edge, enabling merchants to construct their ecommerce solution in a manner that aligns with their distinct business and product offerings. BigCommerce's...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 51.08M provide 33.17x coverage of short-term debt 1.54M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 28.20M exceeds capital expenditure of 8.67M by 3.25x, indicating strong organic growth funding capability.
  • R&D investment of 74.74M represents healthy 1.26x of deferred revenue 59.18M, indicating strong future innovation pipeline.
  • Operating cash flow of 36.87M provides strong 2.53x coverage of operating expenses 14.60M, showing operational efficiency.
  • Robust R&D investment of 74.74M at 0.40x of SG&A 187.96M demonstrates strong commitment to innovation and future growth.

Bear case

  • Investment activities of 32M provide weak support for R&D spending of 74.74M, which is 0.43x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 36.87M provides insufficient coverage of deferred revenue obligations of 59.18M, which is 0.62x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 36.87M shows concerning coverage of stock compensation expenses of 25.59M, with a 1.44 ratio indicating potential earnings quality issues.
  • Operating earnings of (1.84M) show weak coverage of depreciation charges of 14.18M, with a -0.13 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 28.20M represents just -0.51x of debt issuance (55.54M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.48 2.65
EV to Cash from Ops. EV/CFO 12.39 13.37
EV to Debt EV to Debt 2.75 57.69
EV to EBIT EV/EBIT -248.22 19.12
EV to EBITDA EV/EBITDA 115.69 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 16.21 14.69
EV to Market Cap EV to Market Cap 1.35 -92.28
EV to Revenue EV/Rev 1.34 4.60
Price to Book Value [P/B] P/B 7.90 4.26
Price to Earnings [P/E] P/E -25.31 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) -0.18 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -118.05 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 38.21 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 91.42 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 112.01 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 92.20 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 56.33 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 55.56 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 21.56 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 5.56 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.10 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.51 3.75
Current Ratio Curr Ratio (Qtr) 2.14 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 3.87 0.17
Interest Cover Ratio Int Coverage (Qtr) -0.18 -52.32
Times Interest Earned Times Interest Earned (Qtr) -0.18 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 3.60 -100.06
EBIT Margin % EBIT Margin % (Qtr) -0.54 -164.24
EBT Margin % EBT Margin % (Qtr) -3.56 -116.94
Gross Margin % Gross Margin % (Qtr) 78.60 58.20
Net Profit Margin % Net Margin % (Qtr) -3.90 -121.65