Sprinklr, Inc. (NYSE: CXM)

Sector: Technology Industry: Software - Application CIK: 0001569345
Market Cap 2.00 Bn
P/B 3.58
P/E 17.74
P/S 2.38
ROIC (Qtr) 1.02
Div Yield % 0.00
Rev 1y % (Qtr) 9.16
Total Debt (Qtr) 48.44 Mn
Debt/Equity (Qtr) 0.09

About

Sprinklr, Inc., a company with the ticker symbol CXM, is a leading provider of Unified Customer Experience Management (Unified-CXM) software. The company operates in the technology industry, specifically in the customer experience management sector. Sprinklr's main business activities revolve around providing an innovative platform that empowers brands to make their customers happier. The company operates in a unified architecture, which addresses the proliferation of online channels, advanced listening, purpose-built AI, and complete, scalable...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 143.89M provides robust 2.97x coverage of total debt 48.44M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 189.59M provide 22.79x coverage of short-term debt 8.32M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 127.25M exceeds capital expenditure of 16.64M by 7.65x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 1B provides 20.72x coverage of total debt 48.44M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 143.89M provides strong 9.07x coverage of operating expenses 15.86M, showing operational efficiency.

Bear case

  • Investment activities of 83.34M provide weak support for R&D spending of 93.24M, which is 0.89x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 143.89M provides insufficient coverage of deferred revenue obligations of 336.37M, which is 0.43x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 143.89M shows concerning coverage of stock compensation expenses of 78.31M, with a 1.84 ratio indicating potential earnings quality issues.
  • Operating cash flow of 143.89M provides minimal -2.82x coverage of tax expenses of (51.03M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 61.60M show weak coverage of depreciation charges of 26.94M, with a 2.29 ratio indicating high capital intensity and potential reinvestment needs.

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 1.82 2.65
EV to Cash from Ops. EV/CFO 13.35 13.37
EV to Debt EV to Debt 39.67 57.69
EV to EBIT EV/EBIT 31.19 19.12
EV to EBITDA EV/EBITDA 30.27 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 15.10 14.69
EV to Market Cap EV to Market Cap 0.96 -92.28
EV to Revenue EV/Rev 2.29 4.60
Price to Book Value [P/B] P/B 3.58 4.26
Price to Earnings [P/E] P/E 17.74 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 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 Interest Coverage 0.00 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 15.31 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 103.34 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 155.55 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 8.67 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 3.30 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 3.30 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 152.94 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 82.10 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.15 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.80 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.43 3.75
Current Ratio Curr Ratio (Qtr) 1.66 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.09 0.17
Interest Cover Ratio Interest Cover Ratio 0.00 -52.32
Times Interest Earned Times Interest Earned 0.00 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 10.60 -100.06
EBIT Margin % EBIT Margin % (Qtr) 7.34 -164.24
EBT Margin % EBT Margin % (Qtr) 7.34 -116.94
Gross Margin % Gross Margin % (Qtr) 68.70 58.20
Net Profit Margin % Net Margin % (Qtr) 13.40 -121.65