OneStream, Inc. (NASDAQ: OS)

Sector: Technology Industry: Software - Infrastructure CIK: 0001889956
Market Cap 4.25 Bn
P/B 9.00
P/E -51.35
P/S 7.45
ROIC (Qtr) -27.96
Div Yield % 0.00
Rev 1y % (Qtr) 19.49
Total Debt (Qtr) 17.70 Mn
Debt/Equity (Qtr) 0.04

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 96.04M provides robust 5.43x coverage of total debt 17.70M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 653.85M provide 193.62x coverage of short-term debt 3.38M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 934.05M provides 52.78x coverage of total debt 17.70M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 94.68M exceeds capital expenditure of 1.36M by 69.36x, indicating strong organic growth funding capability.
  • R&D investment of 136.46M represents healthy 0.48x of deferred revenue 282.72M, indicating strong future innovation pipeline.

Bear case

  • Operating cash flow of 96.04M barely covers its investment activities of (5.07M), with a coverage ratio of -18.96, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (5.07M) provide weak support for R&D spending of 136.46M, which is -0.04x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 653.85M provide limited coverage of acquisition spending of (3.70M), which is -176.72x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 96.04M provides insufficient coverage of deferred revenue obligations of 282.72M, which is 0.34x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 96.04M shows concerning coverage of stock compensation expenses of 147.14M, with a 0.65 ratio indicating potential earnings quality issues.

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.81 2.69
EV to Cash from Ops. EV/CFO 37.65 28.91
EV to Debt EV to Debt 204.30 19.83
EV to EBIT EV/EBIT -38.13 -9.95
EV to EBITDA EV/EBITDA -27.80 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 38.19 26.09
EV to Market Cap EV to Market Cap 0.85 0.36
EV to Revenue EV/Rev 6.34 -9.34
Price to Book Value [P/B] P/B 9.00 3.88
Price to Earnings [P/E] P/E -51.35 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) 6.65 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 43.10 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 31.97 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 47.67 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 51.03 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 48.69 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 55.42 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 67.50
FCF Growth (1y) % FCF 1y % (Qtr) 56.73 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 31.98 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.60 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 1.79 1.22
Current Ratio Curr Ratio (Qtr) 2.37 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 -0.96
Interest Cover Ratio Int Coverage (Qtr) 6.65 -14.20
Times Interest Earned Times Interest Earned (Qtr) 6.65 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -15.40 -548.16
EBIT Margin % EBIT Margin % (Qtr) -16.61 -199.84
EBT Margin % EBT Margin % (Qtr) -14.12 -607.20
Gross Margin % Gross Margin % (Qtr) 67.90 51.88
Net Profit Margin % Net Margin % (Qtr) -14.50 -610.00