Last Updated: 16 Sep 2024
Executive Summary
Smartsheet Inc. (SMAR) is a cloud-based platform provider for job execution. The company has a strong track record of revenue growth, but it is currently unprofitable. Despite this, analysts are bullish on the stock, with a consensus price target of $57.42. The stock is trading at a discount to its peers and has a favorable technical outlook.
Company Overview
Smartsheet Inc. was founded in 2006 and is headquartered in Bellevue, Washington. The company's platform enables users to create, collaborate on, and track projects. Smartsheet has over 10 million users and is used by businesses of all sizes, including Fortune 500 companies.
Fundamental Analysis
Smartsheet's revenue has grown rapidly in recent years, increasing from $321 million in 2019 to $1.04 billion in 2023. However, the company is still unprofitable, with a net loss of $53.5 million in 2023. Smartsheet's gross margin is 57.8%, which is in line with its peers. The company's operating margin is -1.9%, which is below its peers.
Smartsheet's balance sheet is strong, with $562 million in cash and equivalents and no debt. The company's free cash flow was $106 million in 2023.
Technical Analysis
Smartsheet's stock price has been in a downtrend since reaching a high of $54.50 in April 2023. The stock is currently trading at $52.69, which is below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 45.6, which is in neutral territory.
Short Term Outlook
Smartsheet's stock is likely to continue to trade in a range in the near term. The stock is facing resistance at its 50-day moving average and support at its 200-day moving average. A break above the 50-day moving average would be a bullish sign, while a break below the 200-day moving average would be a bearish sign.
Long Term Outlook
Smartsheet is a well-positioned company in a growing market. The company's platform is a valuable tool for businesses of all sizes. Smartsheet is likely to continue to grow its revenue and market share in the long term.
Analyst Recommendations
Analysts are bullish on Smartsheet's stock. The consensus price target is $57.42, which represents a 9.0% upside from the current price. Six analysts have a strong buy rating on the stock, 11 have a buy rating, three have a hold rating, and one has a sell rating.
