MongoDB, Inc. (MDB) Stock Analysis and Metrics

Sector: Technology Industry: Software - Infrastructure CIK: 0001441816

P/B 12.61

P/E -514.02

P/S 15.72

Market Cap 36.42 Bn

ROIC (Qtr) 7.85

Div Yield % 0.00

Rev 1y % (Qtr) 18.69

Total Debt (Qtr) 34.63 Mn

Debt/Equity (Qtr) 0.01

About

MongoDB, Inc. (MDB) operates in the software industry, specifically as a developer data platform company. Its primary business activities revolve around its developer data platform, an integrated set of database and related services that cater to a wide variety of modern application requirements. The platform is designed to support a broad range of workloads and offers a host of features and services that complement its database offering. This integrated solution reduces the cost and back-end complexity of application infrastructure for customers. MongoDB's...

MongoDB, Inc. (MDB) operates in the software industry, specifically as a developer data platform company. Its primary business activities revolve around its developer data platform, an integrated set of database and related services that cater to a wide variety of modern application requirements. The platform is designed to support a broad range of workloads and offers a host of features and services that complement its database offering. This integrated solution reduces the cost and back-end complexity of application infrastructure for customers.

MongoDB's main product is a modern, general-purpose database built on a unique document-based architecture. This design enables developers to manage and interact with data in a more natural way than legacy alternatives. The company's database is used by a diverse range of customers across numerous industries, including finance, healthcare, retail, and technology.

MongoDB's competitive advantage lies in its ability to address the needs of organizations for performance, scalability, flexibility, and reliability. It provides a unified and consistent user experience across a broad range of workloads and is highly scalable, capable of being run in various environments such as the cloud, on-premises, or in a hybrid environment.

The company's customer base includes a wide range of organizations, from tech giants like Google, Microsoft, and Amazon to startups and small businesses. These customers use MongoDB's platform to build a variety of applications, including mobile apps, web applications, and enterprise software.

In the database management software market, MongoDB is a leader, a sector that IDC forecasts to reach $94 billion in 2023 and grow to approximately $153 billion in 2027, representing a 13% compound annual growth rate. MongoDB is well-positioned to benefit from this growth, with its platform being used by a wide range of customers across various industries.

MongoDB's growth strategy includes acquiring new customers, expanding sales within its existing customer base, extending product leadership and introducing new products, fostering the MongoDB developer community, and growing and cultivating its partner ecosystem. The company has a strong track record of innovation, focusing on developing new features and capabilities that help developers solve more of their data challenges.

Employees are MongoDB's greatest asset, and the company believes its culture is critical to its success. This culture is grounded in values such as Think Big, Go Far, Build Together, Embrace the Power of Differences, Make It Matter, and Be Intellectually Honest. The company is committed to creating a culture that reflects its value of embracing the power of differences to drive better business outcomes.

MongoDB's research and development efforts are focused on enhancing its existing products and developing new ones to extend its product leadership, increase its market penetration, and deepen its relationships with its customers. The company's research and development organization is built around small development teams, fostering greater agility and enabling the company to develop new, innovative products and make rapid changes to its infrastructure, increasing resiliency and operational efficiency.

Stock Price Chart

Analysis

Pros

Strong operating cash flow of 376.08M provides robust 10.86x coverage of total debt 34.62M, indicating excellent debt servicing capability and financial flexibility.
Healthy cash reserves of 834.09M provide 91.21x coverage of short-term debt 9.14M, demonstrating strong liquidity position and minimal refinancing risk.
Operating cash flow of 376.08M provides exceptional 75.59x coverage of interest expenses 4.97M, showing strong debt service capability.
Strong tangible asset base of 3.34B provides 96.42x coverage of total debt 34.62M, indicating robust asset backing and low credit risk.
Robust free cash flow of 346.28M exceeds capital expenditure of 29.80M by 11.62x, indicating strong organic growth funding capability.

Cons

Investment activities of 125.84M provide weak support for R&D spending of 677.58M, which is 0.19x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Cash reserves of 834.09M provide limited coverage of acquisition spending of (2.03M), which is -410.48x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
Operating cash flow of 376.08M provides insufficient coverage of deferred revenue obligations of 367.05M, which is 1.02x, raising concerns about future service delivery capabilities.
The company's operating cash flow of 376.08M shows concerning coverage of stock compensation expenses of 531.50M, with a 0.71 ratio indicating potential earnings quality issues.
Operating cash flow of 376.08M provides minimal -4424.49x coverage of tax expenses of (85000), suggesting potential tax planning inefficiencies or unsustainable tax positions.

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
EV to Assets	10.04	2.56
EV to Cash from Ops.	95.22	38.32
EV to Debt	1,034.22	-11.37
EV to EBIT	-542.86	-12.79
EV to EBITDA	-294.52	7.72
EV to Free Cash Flow [EV/FCF]	103.41	24.22
EV to Market Cap	0.98	0.58
EV to Revenue	15.45	-35.00
Price to Book Value [P/B]	12.61	3.74
Price to Earnings [P/E]	-514.02	-18.61

Dividend Metrics

Metric	Value	Industry
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	-13.26	-13.15

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-372.42	-404.11
Cash and Equivalents Growth (1y) %	23.93	226.02
Dividend Growth (1y) %	0.00	-0.27
EBIAT Growth (1y) %	65.48	31.15
EBITDA Growth (1y) %	49.02	49.02
EBIT Growth (1y) %	63.14	25.85
EBT Growth (1y) %	62.23	17.82
EPS Growth (1y) %	70.07	70.69
FCF Growth (1y) %	134.02	295.45
Gross Profit Growth (1y) %	17.27	49.96

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.65	0.68
Cash Payout Ratio	0.00	0.02
Cash Ratio	1.49	1.21
Current Ratio	5.26	2.57
Debt to Equity Ratio	0.01	-0.93
Interest Cover Ratio	-13.26	-13.15
Times Interest Earned	-13.26	-13.15

Profitability

Metric	Value	Industry
EBITDA Margin %	-1.40	-544.82
EBIT Margin %	-2.85	-197.78
EBT Margin %	-3.06	-602.74
Gross Margin %	71.60	52.06
Net Profit Margin %	-3.10	-605.52

MongoDB, Inc. (NASDAQ: MDB)