Atlassian Corp (TEAM, Financial), a leading software company, has seen a significant surge in its stock price over the past three months. With a current market cap of $51.27 billion and a price of $199.18, the company's stock has gained 10.56% in the past quarter, despite a slight dip of 2.33% over the past week. According to the GF Value, which calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, Atlassian Corp is significantly undervalued. The current GF Value stands at $410.54, up from $403.2 three months ago, indicating a potential for further growth.
Company Overview
Founded in 2002 and headquartered in Sydney, Atlassian Corp operates in the software industry, providing project planning and management software, collaboration tools, and IT help desk solutions. The company's business model is divided into four segments: subscriptions, maintenance, perpetual license, and other. The 'other' segment includes training, strategic consulting, and revenue from the Atlassian Marketplace app store. 
Profitability Analysis
Atlassian Corp's Profitability Rank stands at 5/10, indicating moderate profitability. The company's operating margin is -9.77%, better than 32.39% of 2760 companies in the same industry. The ROE is -92.81%, better than 9.62% of 2651 companies, while the ROA is -13.33%, better than 25.93% of 2819 companies. The ROIC is -18.83%, better than 24.67% of 2817 companies. Over the past 10 years, Atlassian Corp has had 3 years of profitability, better than 27.52% of 2231 companies. 
Growth Prospects
Atlassian Corp's Growth Rank is 8/10, indicating strong growth. The company's 3-year and 5-year revenue growth rates per share are 27.90% and 29.40% respectively, better than 83% and 90.93% of companies in the same industry. The future 3-year to 5-year total revenue growth rate estimate is 20.63%, better than 80.8% of 500 companies. The 3-year EPS without NRI growth rate is -9.90%, better than 29.47% of 1968 companies, while the 5-year EPS without NRI growth rate is -20.30%, better than 9.77% of 1167 companies. The future 3-year to 5-year EPS without NRI growth rate estimate is 24.42%, better than 72.73% of 121 companies. 
Major Stock Holders
The top three holders of Atlassian Corp's stock are Baillie Gifford (Trades, Portfolio) with 2.87% (7,366,334 shares), Frank Sands (Trades, Portfolio) with 1.99% (5,121,260 shares), and Jim Simons (Trades, Portfolio) with 0.86% (2,201,223 shares).
Competitive Landscape
Atlassian Corp faces competition from several major players in the software industry. These include Workday Inc (WDAY, Financial) with a market cap of $56.99 billion, Uber Technologies Inc (UBER, Financial) with a market cap of $90.68 billion, and Autodesk Inc (ADSK, Financial) with a market cap of $45.52 billion.
Conclusion
In conclusion, Atlassian Corp's stock performance, profitability, and growth prospects indicate a promising future for the company. Despite facing stiff competition in the software industry, the company's strong growth rank, undervalued status, and significant stock price gain over the past quarter suggest potential for further growth. Investors should keep a close eye on Atlassian Corp as it continues to navigate the dynamic software industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
