Klaviyo, Inc. (NYSE: KVYO)

Sector: Technology Industry: Software - Infrastructure CIK: 0001835830
P/B 7.06
P/E -122.58
P/S 6.99
Market Cap 8.06 Bn
ROIC (Qtr) -5.69
Div Yield % 0.00
Rev 1y % (Qtr) 32.24
Total Debt (Qtr) 113.41 Mn
Debt/Equity (Qtr) 0.10

About

Klaviyo, Inc. (KVYO) operates in the marketing automation industry, a sector that is thriving due to the increasing significance of data-driven decision making and personalized customer experiences. The company, established in 2012 and headquartered in Boston, Massachusetts, provides businesses with a software-as-a-service (SaaS) platform that empowers them to collect, store, and analyze customer data. This data is then utilized to create targeted marketing campaigns and customized customer experiences. Klaviyo's platform is renowned for its scalability...

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Stock Price Chart

Analysis

Pros

  • Strong operating cash flow of 184.94M provides robust 1.63x coverage of total debt 113.41M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 980.27M provide 39.99x coverage of short-term debt 24.51M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.47B provides 12.92x coverage of total debt 113.41M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 156.56M exceeds capital expenditure of 28.38M by 5.52x, indicating strong organic growth funding capability.
  • Tangible assets of 1.47B provide exceptional 16.66x coverage of deferred revenue 87.93M, showing strong service capability backing.

Cons

  • Operating cash flow of 184.94M barely covers its investment activities of (30.41M), with a coverage ratio of -6.08, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (30.41M) provide weak support for R&D spending of 285.33M, which is -0.11x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 980.27M provide limited coverage of acquisition spending of (2.03M), which is -482.65x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 184.94M shows concerning coverage of stock compensation expenses of 158.69M, with a 1.17 ratio indicating potential earnings quality issues.
  • Operating earnings of (62.83M) show weak coverage of depreciation charges of 39.40M, with a -1.59 ratio indicating high capital intensity and potential reinvestment needs.

Peer Comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,542.10 Bn 33.76 12.06 60.56 Bn
2 ORCL Oracle Corp 533.93 Bn 34.61 8.75 124.39 Bn
3 PLTR Palantir Technologies Inc. 437.56 Bn 399.47 112.31 0.24 Bn
4 PANW Palo Alto Networks Inc 125.16 Bn 112.03 13.10 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 120.85 Bn -384.67 26.47 0.82 Bn
6 SNPS Synopsys Inc 71.69 Bn 35.89 11.14 15.14 Bn
7 NET Cloudflare, Inc. 67.84 Bn -658.43 33.70 3.50 Bn
8 FTNT Fortinet, Inc. 63.33 Bn 33.80 9.66 1.00 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 4.93 2.56
EV to Cash from Ops. 39.07 38.32
EV to Debt 63.72 -11.37
EV to EBIT -115.02 -12.79
EV to EBITDA -118.14 7.72
EV to Free Cash Flow [EV/FCF] 46.16 24.22
EV to Market Cap 0.90 0.58
EV to Revenue 6.26 -35.00
Price to Book Value [P/B] 7.06 3.74
Price to Earnings [P/E] -122.58 -18.61

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % 0.00 2.69
Dividend per Basic Share 0.00 0.10
FCF Dividend Payout Ratio % 0.00 1.67
Interest Coverage 0.00 -13.15

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -82.86 -404.11
Cash and Equivalents Growth (1y) % 18.51 226.02
Dividend Growth (1y) % 0.00 -0.27
EBIAT Growth (1y) % -44.66 31.15
EBITDA Growth (1y) % -8.75 49.02
EBIT Growth (1y) % -36.60 25.85
EBT Growth (1y) % -36.60 17.82
EPS Growth (1y) % -50.00 70.69
FCF Growth (1y) % 21.37 295.45
Gross Profit Growth (1y) % 28.60 49.96

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.79 0.68
Cash Payout Ratio 0.00 0.02
Cash Ratio 4.31 1.21
Current Ratio 4.88 2.57
Debt to Equity Ratio 0.10 -0.93
Interest Cover Ratio 0.00 -13.15
Times Interest Earned 0.00 -13.15

Profitability

Metric Value Industry Percentile
EBITDA Margin % -2.00 -544.82
EBIT Margin % -5.44 -197.78
EBT Margin % -5.44 -602.74
Gross Margin % 75.10 52.06
Net Profit Margin % -5.70 -605.52