Procore Technologies, Inc. (NYSE: PCOR)

Sector: Technology Industry: Software - Application CIK: 0001611052
Market Cap 10.97 Bn
P/B 8.96
P/E -87.40
P/S 8.60
ROIC (Qtr) -12.14
Div Yield % 0.00
Rev 1y % (Qtr) 14.52
Total Debt (Qtr) 63.04 Mn
Debt/Equity (Qtr) 0.05

About

Procore Technologies, Inc., known by its ticker symbol PCOR, is a prominent player in the construction management software industry. The company's mission is to unify the construction industry on a global platform, facilitating real-time collaboration and access to critical project information from any location with an internet connection. Procore's primary business activities revolve around providing a cloud-based platform that digitizes and modernizes construction management. The company's offerings are specifically tailored to the construction...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 214.38M provides robust 3.40x coverage of total debt 63.04M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 214.38M provides exceptional 162.54x coverage of interest expenses 1.32M, showing strong debt service capability.
  • Strong tangible asset base of 1.23B provides 19.58x coverage of total debt 63.04M, indicating robust asset backing and low credit risk.
  • Long-term investments of 43.97M provide solid 0.70x coverage of long-term debt 63.04M, indicating strategic financial planning.
  • Free cash flow of 125.38M provides exceptional 95.05x coverage of interest expense 1.32M, showing strong debt service ability.

Bear case

  • Operating cash flow of 214.38M barely covers its investment activities of (136.24M), with a coverage ratio of -1.57, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (136.24M) provide weak support for R&D spending of 353.85M, which is -0.39x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 350.50M provide limited coverage of acquisition spending of (45.05M), which is -7.78x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 214.38M provides insufficient coverage of deferred revenue obligations of 577.55M, which is 0.37x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 214.38M shows concerning coverage of stock compensation expenses of 209.37M, with a 1.02 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 5.20 2.65
EV to Cash from Ops. EV/CFO 49.95 13.37
EV to Debt EV to Debt 169.84 57.69
EV to EBIT EV/EBIT -91.19 19.12
EV to EBITDA EV/EBITDA -330.84 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 85.40 14.69
EV to Market Cap EV to Market Cap 0.98 -92.28
EV to Revenue EV/Rev 8.40 4.60
Price to Book Value [P/B] P/B 8.96 4.26
Price to Earnings [P/E] P/E -87.40 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 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) -89.02 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -72.12 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -20.21 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -74.18 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -236.09 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) -67.34 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) -64.71 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) -64.71 123.84
FCF Growth (1y) % FCF 1y % (Qtr) -19.71 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 11.40 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.62 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.46 3.75
Current Ratio Curr Ratio (Qtr) 1.33 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.05 0.17
Interest Cover Ratio Int Coverage (Qtr) -89.02 -52.32
Times Interest Earned Times Interest Earned (Qtr) -89.02 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -0.20 -100.06
EBIT Margin % EBIT Margin % (Qtr) -9.21 -164.24
EBT Margin % EBT Margin % (Qtr) -9.31 -116.94
Gross Margin % Gross Margin % (Qtr) 79.80 58.20
Net Profit Margin % Net Margin % (Qtr) -9.80 -121.65