PagerDuty, Inc. Fundamental Analysis (NYSE: PD)
PagerDuty, Inc. (NYSE: PD) shows strong financial fundamentals with a PE ratio of 5.83, profit margin of 37.64%, and ROE of 76.52%. The company generates $0.6B in annual revenue with moderate year-over-year growth of 8.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PD's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPD demonstrates superior asset utilization.
Valuation Score
ExcellentPD trades at attractive valuation levels.
Growth Score
ExcellentPD delivers strong and consistent growth momentum.
Financial Health Score
ModeratePD shows balanced financial health with some risks.
Profitability Score
ExcellentPD achieves industry-leading margins.
Key Financial Metrics
Is PD Expensive or Cheap?
P/E Ratio
PD trades at 5.83 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PD's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values PagerDuty, Inc. at 4.43 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.20 times EBITDA. This signals the market has high growth expectations.
How Well Does PD Make Money?
Net Profit Margin
For every $100 in sales, PagerDuty, Inc. keeps $37.64 as profit after all expenses.
Operating Margin
Core operations generate 5.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $76.52 in profit for every $100 of shareholder equity.
ROA
PagerDuty, Inc. generates $19.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PagerDuty, Inc. generates strong operating cash flow of $149.00M, reflecting robust business health.
Free Cash Flow
PagerDuty, Inc. generates strong free cash flow of $144.98M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.59 in free cash annually.
FCF Yield
PD converts 11.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.002
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.25
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.95
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.77
vs 25 benchmark
ROA
Return on assets percentage
0.20
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How PD Stacks Against Its Sector Peers
| Metric | PD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.83 | 35.30 | Better (Cheaper) |
| ROE | 76.52% | 752.00% | Weak |
| Net Margin | 37.64% | -2918.00% (disorted) | Strong |
| Debt/Equity | 1.91 | 0.60 | Weak (High Leverage) |
| Current Ratio | 1.95 | 6.15 | Neutral |
| ROA | 19.84% | 323.00% | Weak |
PD outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PagerDuty, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
100.22%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
39.52%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
48648.93%
Industry Style: Growth, Innovation, High Beta
High Growth