Jamf Holding Corp. (NASDAQ: JAMF)

Sector: Technology Industry: Software - Application CIK: 0001721947
Market Cap 1.74 Bn
P/B 2.21
P/E -42.10
P/S 2.52
ROIC (Qtr) -1.59
Div Yield % 0.00
Rev 1y % (Qtr) 15.20
Total Debt (Qtr) 769.25 Mn
Debt/Equity (Qtr) 0.98

About

Price action

Investment thesis

Bull case

  • Robust free cash flow of 110.20M exceeds capital expenditure of 6.91M by 15.95x, indicating strong organic growth funding capability.
  • R&D investment of 147.25M represents healthy 0.33x of deferred revenue 440.49M, indicating strong future innovation pipeline.
  • Operating cash flow of 117.11M provides strong 22.62x coverage of tax liabilities 5.18M, showing excellent fiscal position.
  • Operating cash flow of 117.11M provides strong 3.86x coverage of operating expenses 30.36M, showing operational efficiency.
  • Cash position of 547.19M provides strong 1.24x coverage of deferred revenue 440.49M, ensuring service delivery capability.

Bear case

  • Operating cash flow of 117.11M barely covers its investment activities of (185.47M), with a coverage ratio of -0.63, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (185.47M) provide weak support for R&D spending of 147.25M, which is -1.26x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 547.19M provide limited coverage of acquisition spending of (175.61M), which is -3.12x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 117.11M provides insufficient coverage of deferred revenue obligations of 440.49M, which is 0.27x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 117.11M shows concerning coverage of stock compensation expenses of 99.27M, with a 1.18 ratio indicating potential earnings quality issues.

Segments Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 234.56 Bn 28.15 5.46 10.73 Bn
2 CRM Salesforce, Inc. 204.28 Bn 32.96 5.39 11.14 Bn
3 SHOP Shopify Inc. 169.36 Bn 95.09 15.83 1.12 Bn
4 UBER Uber Technologies, Inc 167.13 Bn 10.04 3.37 12.19 Bn
5 INTU Intuit Inc. 140.92 Bn 175.06 33.55 6.78 Bn
6 ADBE Adobe Inc. 124.98 Bn 17.53 5.26 6.65 Bn
7 NOW ServiceNow, Inc. 121.03 Bn 69.24 9.11 2.40 Bn
8 ADP Automatic Data Processing Inc 100.13 Bn 23.64 4.72 4.37 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.95 2.50
EV to Cash from Ops. EV/CFO 17.29 12.27
EV to Debt EV to Debt 2.63 50.31
EV to EBIT EV/EBIT -47.80 10.96
EV to EBITDA EV/EBITDA 89.08 16.84
EV to Free Cash Flow [EV/FCF] EV/FCF 18.38 14.08
EV to Market Cap EV to Market Cap 1.17 -118.20
EV to Revenue EV/Rev 2.93 4.45
Price to Book Value [P/B] P/B 2.21 4.27
Price to Earnings [P/E] P/E -42.10 -133.65
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.97
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 2.54
Interest Coverage Int. cover (Qtr) 16.00 -51.80
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 2.48 -210.77
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 150.52 9,906.83
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.62
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 44.89 -265.85
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 198.44 55.76
EBIT Growth (1y) % EBIT 1y % (Qtr) 43.00 -227.83
EBT Growth (1y) % EBT 1y % (Qtr) 38.51 -88.00
EPS Growth (1y) % EPS 1y % (Qtr) 43.64 121.91
FCF Growth (1y) % FCF 1y % (Qtr) 263.10 -40.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 11.51 92.11
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.32 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.61 3.77
Current Ratio Curr Ratio (Qtr) 0.87 8.19
Debt to Equity Ratio Debt/Equity (Qtr) 0.98 0.16
Interest Cover Ratio Int Coverage (Qtr) 16.00 -51.80
Times Interest Earned Times Interest Earned (Qtr) 16.00 -51.80
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 2.20 -105.77
EBIT Margin % EBIT Margin % (Qtr) -6.13 -131.65
EBT Margin % EBT Margin % (Qtr) -5.75 -122.72
Gross Margin % Gross Margin % (Qtr) 76.80 58.14
Net Profit Margin % Net Margin % (Qtr) -6.00 -127.70