Intapp, Inc. (NASDAQ: INTA)

Sector: Technology Industry: Software - Application CIK: 0001565687
Market Cap 3.49 Bn
P/B 7.17
P/E -124.37
P/S 6.65
ROIC (Qtr) -7.13
Div Yield % 0.00
Rev 1y % (Qtr) 17.02
Total Debt (Qtr) 16.12 Mn
Debt/Equity (Qtr) 0.03

About

Intapp, Inc. (INTA) operates in the global professional and financial services industry, providing cloud-based software solutions. The company's primary business activities involve offering technology to premier private capital, investment banking, legal, accounting, and consulting firms. This technology enables these firms to operate more competitively, deliver timely insights to their professionals, and meet rapidly changing client, investor, and regulatory requirements. Intapp's operations span various countries and regions, with a focus on serving...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 112.88M provides robust 7x coverage of total debt 16.11M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 459.33M provides 28.50x coverage of total debt 16.11M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 102.87M exceeds capital expenditure of 10.01M by 10.28x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 459.33M provides 6.31x coverage of working capital 72.81M, indicating strong operational backing.
  • R&D investment of 146.27M represents healthy 0.61x of deferred revenue 239.22M, indicating strong future innovation pipeline.

Bear case

  • Operating cash flow of 112.88M barely covers its investment activities of (65.94M), with a coverage ratio of -1.71, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (65.94M) provide weak support for R&D spending of 146.27M, which is -0.45x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 273.64M provide limited coverage of acquisition spending of (50.94M), which is -5.37x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 112.88M provides insufficient coverage of deferred revenue obligations of 239.22M, which is 0.47x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 112.88M shows concerning coverage of stock compensation expenses of 95.38M, with a 1.18 ratio indicating potential earnings quality issues.

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 3.88 2.65
EV to Cash from Ops. EV/CFO 28.27 13.37
EV to Debt EV to Debt 198.04 57.69
EV to EBIT EV/EBIT -124.17 19.12
EV to EBITDA EV/EBITDA -275.31 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 31.02 14.69
EV to Market Cap EV to Market Cap 0.91 -92.28
EV to Revenue EV/Rev 6.09 4.60
Price to Book Value [P/B] P/B 7.17 4.26
Price to Earnings [P/E] P/E -124.37 -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) 0.00 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -29.27 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 7.71 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -32.19 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -242.25 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) -36.49 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) -36.49 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) -20.69 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 42.24 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 20.45 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.64 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.88 3.75
Current Ratio Curr Ratio (Qtr) 1.23 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 0.17
Interest Cover Ratio Int Coverage (Qtr) 0.00 -52.32
Times Interest Earned Times Interest Earned (Qtr) 0.00 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -0.50 -100.06
EBIT Margin % EBIT Margin % (Qtr) -4.90 -164.24
EBT Margin % EBT Margin % (Qtr) -4.90 -116.94
Gross Margin % Gross Margin % (Qtr) 74.40 58.20
Net Profit Margin % Net Margin % (Qtr) -5.30 -121.65