JFrog Ltd. Fundamental Analysis (NASDAQ: FROG)
JFrog Ltd. (NASDAQ: FROG) shows moderate financial fundamentals with a PE ratio of -563.53, profit margin of -3.28%, and ROE of -2.23%. The company generates $0.6B in annual revenue with strong year-over-year growth of 24.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FROG's fundamental strength across five key dimensions:
Efficiency Score
WeakFROG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFROG trades at attractive valuation levels.
Growth Score
ModerateFROG shows steady but slowing expansion.
Financial Health Score
ExcellentFROG maintains a strong and stable balance sheet.
Profitability Score
WeakFROG struggles to sustain strong margins.
Key Financial Metrics
Is FROG Expensive or Cheap?
P/E Ratio
FROG trades at -563.53 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FROG's PEG of -3.72 indicates potential undervaluation.
Price to Book
The market values JFrog Ltd. at 12.34 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10635.50 times EBITDA. This signals the market has high growth expectations.
How Well Does FROG Make Money?
Net Profit Margin
For every $100 in sales, JFrog Ltd. keeps $-3.28 as profit after all expenses.
Operating Margin
Core operations generate -7.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.23 in profit for every $100 of shareholder equity.
ROA
JFrog Ltd. generates $-1.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
JFrog Ltd. generates strong operating cash flow of $210.89M, reflecting robust business health.
Free Cash Flow
JFrog Ltd. generates strong free cash flow of $203.02M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.68 in free cash annually.
FCF Yield
FROG converts 1.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-563.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.72
vs 25 benchmark
P/B Ratio
Price to book value ratio
12.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
19.002
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.02
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
-0.04
vs 25 benchmark
How FROG Stacks Against Its Sector Peers
| Metric | FROG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -563.53 | 31.56 | Better (Cheaper) |
| ROE | -2.23% | 767.00% | Weak |
| Net Margin | -3.28% | -3735.00% (disorted) | Weak |
| Debt/Equity | 0.11 | 0.58 | Strong (Low Leverage) |
| Current Ratio | 2.15 | 12.26 | Strong Liquidity |
| ROA | -1.27% | 2073.00% | Weak |
FROG outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews JFrog Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
41.07%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-205.50%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
97.91%
Industry Style: Growth, Innovation, High Beta
High Growth