Last Updated: 10 Nov 2024
Executive Summary
Nerdwallet Inc. (NRDS) is a leading provider of consumer-oriented personal finance advice. The company's digital platform connects individuals and small businesses with financial product providers. Nerdwallet has a strong track record of growth, with revenue increasing by 25.2% year-over-year in the latest quarter. However, the company is still unprofitable, with a trailing twelve-month net loss of $6.9 million.
Company Overview
Nerdwallet was founded in 2009 and is headquartered in San Francisco, California. The company's mission is to provide unbiased and accessible financial advice to help people make informed decisions about their money. Nerdwallet's platform offers a wide range of content, including articles, videos, tools, and calculators. The company also offers a paid subscription service that provides access to personalized financial advice.
Fundamental Analysis
Nerdwallet's financial performance has been mixed in recent quarters. Revenue has grown steadily, but the company has yet to achieve profitability. In the latest quarter, Nerdwallet reported revenue of $63.75 million, up 25.2% year-over-year. However, the company's net loss widened to $6.9 million, from a loss of $4.6 million in the same quarter last year.
Nerdwallet's gross profit margin has been declining in recent quarters, from 80.3% in Q3 2023 to 78.6% in Q3 2024. This decline is due to the company's increasing investment in content and marketing. Nerdwallet's operating margin also declined in the latest quarter, from 10.1% to 7.5%.
Despite its recent losses, Nerdwallet has a strong balance sheet. The company has $103.5 million in cash and equivalents and no debt. Nerdwallet also has a strong cash flow from operations, which totaled $21.2 million in the latest quarter.
Technical Analysis
Nerdwallet's stock price has been trading in a range between $10.10 and $17.30 over the past 52 weeks. The stock is currently trading at $15.61, near the middle of its range.
Nerdwallet's technical indicators are mixed. The stock's 50-day moving average is $12.80, while its 200-day moving average is $13.90. The stock's relative strength index (RSI) is 52.4, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
Nerdwallet's short-term outlook is mixed. The company's revenue is growing, but it is still unprofitable. The stock's technical indicators are also mixed. Overall, we believe that Nerdwallet's stock is fairly valued at current levels.
Long Term Outlook
Nerdwallet's long-term outlook is positive. The company's platform is well-positioned to benefit from the growing demand for financial advice. Nerdwallet is also investing heavily in content and marketing, which should help to drive future growth. We believe that Nerdwallet's stock has the potential to outperform the market over the long term.
Analyst Recommendations
The majority of analysts have a buy rating on Nerdwallet's stock. The average analyst target price is $17.00, which implies a potential upside of 9.5% from the current price.
