monday.com Ltd. Fundamental Analysis
monday.com Ltd. (MNDY) shows moderate financial fundamentals with a PE ratio of 35.16, profit margin of 9.17%, and ROE of 10.69%. The company generates $1.4B in annual revenue with strong year-over-year growth of 26.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MNDY's fundamental strength across five key dimensions:
Efficiency Score
WeakMNDY struggles to generate sufficient returns from assets.
Valuation Score
ModerateMNDY shows balanced valuation metrics.
Growth Score
ModerateMNDY shows steady but slowing expansion.
Financial Health Score
ExcellentMNDY maintains a strong and stable balance sheet.
Profitability Score
WeakMNDY struggles to sustain strong margins.
Key Financial Metrics
Is MNDY Expensive or Cheap?
P/E Ratio
MNDY trades at 35.16 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MNDY's PEG of 0.28 indicates potential undervaluation.
Price to Book
The market values monday.com Ltd. at 5.53 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 101.48 times EBITDA. This signals the market has high growth expectations.
How Well Does MNDY Make Money?
Net Profit Margin
For every $100 in sales, monday.com Ltd. keeps $9.17 as profit after all expenses.
Operating Margin
Core operations generate 0.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.69 in profit for every $100 of shareholder equity.
ROA
monday.com Ltd. generates $7.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
monday.com Ltd. generates strong operating cash flow of $358.67M, reflecting robust business health.
Free Cash Flow
monday.com Ltd. generates strong free cash flow of $337.92M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.56 in free cash annually.
FCF Yield
MNDY converts 6.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.72
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.009
vs 25 benchmark
How MNDY Stacks Against Its Sector Peers
| Metric | MNDY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.16 | 37.32 | Neutral |
| ROE | 10.69% | 993.00% | Weak |
| Net Margin | 9.17% | 5975589423.00% | Weak |
| Debt/Equity | 0.23 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 1.72 | 116.24 | Neutral |
| ROA | 7.05% | -297552.00% (disorted) | Weak |
MNDY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews monday.com Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
476.62%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
158.83%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
776.81%
Industry Style: Growth, Innovation, High Beta
High Growth