Nextdoor Holdings, Inc.
Nextdoor Holdings, Inc. Fundamental Analysis
Nextdoor Holdings, Inc. (KIND) shows moderate financial fundamentals with a PE ratio of -17.63, profit margin of -16.47%, and ROE of -10.32%. The company generates $0.3B in annual revenue with strong year-over-year growth of 13.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 19.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KIND's fundamental strength across five key dimensions:
Efficiency Score
WeakKIND struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKIND trades at attractive valuation levels.
Growth Score
ExcellentKIND delivers strong and consistent growth momentum.
Financial Health Score
ExcellentKIND maintains a strong and stable balance sheet.
Profitability Score
WeakKIND struggles to sustain strong margins.
Key Financial Metrics
Is KIND Expensive or Cheap?
P/E Ratio
KIND trades at -17.63 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KIND's PEG of -0.20 indicates potential undervaluation.
Price to Book
The market values Nextdoor Holdings, Inc. at 1.92 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -15.49 times EBITDA. This is generally considered low.
How Well Does KIND Make Money?
Net Profit Margin
For every $100 in sales, Nextdoor Holdings, Inc. keeps $-16.47 as profit after all expenses.
Operating Margin
Core operations generate -22.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-10.32 in profit for every $100 of shareholder equity.
ROA
Nextdoor Holdings, Inc. generates $-9.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nextdoor Holdings, Inc. generates limited operating cash flow of $7.27M, signaling weaker underlying cash strength.
Free Cash Flow
Nextdoor Holdings, Inc. generates weak or negative free cash flow of $6.65M, restricting financial flexibility.
FCF Per Share
Each share generates $0.02 in free cash annually.
FCF Yield
KIND converts 0.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-17.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
14.010
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.10
vs 25 benchmark
ROA
Return on assets percentage
-0.10
vs 25 benchmark
ROCE
Return on capital employed
-0.14
vs 25 benchmark
How KIND Stacks Against Its Sector Peers
| Metric | KIND Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -17.63 | 23.90 | Better (Cheaper) |
| ROE | -10.32% | 1020.00% | Weak |
| Net Margin | -16.47% | -59468.00% (disorted) | Weak |
| Debt/Equity | 0.07 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 14.01 | 1.69 | Strong Liquidity |
| ROA | -9.65% | -6587.00% (disorted) | Weak |
KIND outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nextdoor Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
197.86%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-33.07%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
68.59%
Industry Style: Growth, Technology, Streaming
High Growth