Fiverr International Ltd. (NYSE: FVRR)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001762301
Market Cap 566.24 Mn
P/B 1.42
P/E 25.32
P/S 1.32
ROIC (Qtr) -1.20
Div Yield % 0.00
Rev 1y % (Qtr) 8.31
Total Debt (Qtr) 463.56 Mn
Debt/Equity (Qtr) 1.16

About

Price action

Investment thesis

Bull case

  • Tangible assets of 995.41M provide exceptional 50.72x coverage of deferred revenue 19.62M, showing strong service capability backing.
  • Robust free cash flow of 110.03M exceeds capital expenditure of 2.73M by 40.38x, indicating strong organic growth funding capability.
  • Operating cash flow of 112.75M provides strong 5.75x coverage of deferred revenue 19.62M, indicating service delivery capability.
  • Robust tangible asset base of 995.41M provides 4.17x coverage of working capital 238.99M, indicating strong operational backing.
  • Tangible assets of 995.41M provide robust 5.68x coverage of other current liabilities 175.33M, indicating strong asset backing.

Bear case

  • Operating cash flow of 112.75M barely covers its investment activities of 312.42M, with a coverage ratio of 0.36, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of 112.75M shows concerning coverage of stock compensation expenses of 59.75M, with a 1.89 ratio indicating potential earnings quality issues.
  • Operating cash flow of 112.75M provides minimal -12.58x coverage of tax expenses of (8.96M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (12.96M) show weak coverage of depreciation charges of 15.78M, with a -0.82 ratio indicating high capital intensity and potential reinvestment needs.
  • Short-term investments of 193.31M represent 0.81x of working capital 238.99M, suggesting potentially excessive financial asset allocation versus operational needs.

Peer comparison

Companies in the Internet Content & Information
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GOOGL Alphabet Inc. 4,538.16 Bn 131.46 27.23 33.71 Bn
2 META Meta Platforms, Inc. 1,747.49 Bn 74.30 23.25 51.06 Bn
3 SPOT Spotify Technology S.A. 103.00 Bn 62.32 5.18 2.57 Bn
4 BIDU Baidu, Inc. 62.73 Bn 49.63 3.42 13.66 Bn
5 RDDT Reddit, Inc. 32.18 Bn 92.16 16.90 0.03 Bn
6 NBIS Nebius Group N.V. 27.81 Bn 127.53 81.80 4.51 Bn
7 TME Tencent Music Entertainment Group 24.66 Bn 15.77 5.54 0.54 Bn
8 PINS Pinterest, Inc. 16.95 Bn 8.53 4.18 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.63 1.10
EV to Cash from Ops. EV/CFO 6.35 -3.08
EV to Debt EV to Debt 1.55 28.98
EV to EBIT EV/EBIT -55.27 -26.54
EV to EBITDA EV/EBITDA 254.25 9.30
EV to Free Cash Flow [EV/FCF] EV/FCF 6.51 -67.01
EV to Market Cap EV to Market Cap 1.26 0.90
EV to Revenue EV/Rev 1.68 61.25
Price to Book Value [P/B] P/B 1.42 1.56
Price to Earnings [P/E] P/E 25.32 2.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.33
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -8.92
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) 0.49 -202.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -140.09 -24.06
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 251.45 175.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -222.53 31.53
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 168.49 -472.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -12.21 32.66
EBT Growth (1y) % EBT 1y % (Qtr) -23.04 -25.80
EPS Growth (1y) % EPS 1y % (Qtr) 129.63 -18.36
FCF Growth (1y) % FCF 1y % (Qtr) 38.49 20.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.58 19.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.38 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.78 1.54
Current Ratio Curr Ratio (Qtr) 1.33 3.38
Debt to Equity Ratio Debt/Equity (Qtr) 1.16 -0.39
Interest Cover Ratio Int Coverage (Qtr) 0.49 -202.56
Times Interest Earned Times Interest Earned (Qtr) 0.49 -202.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.70 -4,283.87
EBIT Margin % EBIT Margin % (Qtr) -3.03 -4,786.62
EBT Margin % EBT Margin % (Qtr) 3.13 -5,002.12
Gross Margin % Gross Margin % (Qtr) 81.10 58.65
Net Profit Margin % Net Margin % (Qtr) 5.20 -5,003.08