C3.ai Inc (AI, Financial) has recently experienced a notable uptick in its stock price, with an 8.70% gain over the past week and a 12.79% gain over the past three months. The company's market capitalization now stands at $3.91 billion, with the current stock price at $32.64. When compared to the GF Value of $30.18, which has slightly increased from the past GF Value of $29.64, C3.ai Inc is considered to be fairly valued, both currently and in the past valuation. This suggests that the stock's recent performance is in line with its intrinsic value, as defined by GuruFocus.com.
Introduction to C3.ai Inc
C3.ai Inc, operating within the competitive software industry, is a leading enterprise artificial intelligence company. It specializes in providing SaaS applications that facilitate the development, deployment, and operation of large-scale AI applications. The company's offerings are divided into three main divisions: The C3 AI Suite, C3 AI Applications, and C3.ai Ex Machina. These solutions cater to a variety of industry-specific and application-specific needs, allowing for immediate installation and deployment. 
Assessing Profitability
Despite the positive stock performance, C3.ai Inc's Profitability Rank is low at 1/10. The company's operating margin is deeply negative at -104.97%, which, while better than 10.49% of 2,764 companies in the industry, indicates significant losses relative to revenue. The ROE (Return on Equity) stands at -28.06%, and the ROA (Return on Assets) is at -24.02%, both metrics suggesting that the company is not currently generating positive returns on its investments or assets. Furthermore, the ROIC (Return on Invested Capital) is at a concerning -109.28%. These figures highlight the challenges C3.ai Inc faces in terms of profitability within the software industry.
Growth Prospects of C3.ai Inc
In terms of growth, C3.ai Inc has a 3-Year Revenue Growth Rate per Share of 4.50%, which is better than 40.34% of 2,402 companies in the same industry. The company's Total Revenue Growth Rate, estimated for the next 3 to 5 years, is an impressive 19.20%, outperforming 79.68% of 507 companies. However, the 3-Year EPS without NRI (Net of Regular Income) Growth Rate is at -37.50%, which, despite being better than 13.95% of 2,007 companies, indicates a decline in earnings per share over the past three years. These mixed growth indicators suggest that while there is potential for revenue expansion, profitability remains a significant concern.
Notable Shareholders in C3.ai Inc
C3.ai Inc has attracted the attention of several prominent investors. Philippe Laffont (Trades, Portfolio) holds the largest stake among them, with 2,263,860 shares, accounting for 1.92% of the company's shares. Paul Tudor Jones (Trades, Portfolio) follows with 708,777 shares, representing a 0.6% share percentage. Jim Simons (Trades, Portfolio), another notable investor, holds 64,300 shares, which equates to a 0.05% share percentage. The involvement of these seasoned investors may provide a level of confidence in the company's future prospects.
Competitive Landscape
When compared to its competitors, C3.ai Inc's market capitalization is relatively competitive. CommVault Systems Inc (CVLT, Financial) has a market cap of $3.5 billion, BlackLine Inc (BL, Financial) is valued at $3.87 billion, and Ncino Inc (NCNO, Financial) stands at $3.58 billion. These figures place C3.ai Inc at the higher end of the spectrum among its closest competitors, suggesting a strong market position within the software industry.
Conclusion
In summary, C3.ai Inc's stock performance has been robust in recent months, with the company maintaining a fair valuation according to the GF Value. The company's market position is solid, with a business model focused on the burgeoning field of enterprise AI. However, profitability remains a significant challenge, as reflected in the company's low profitability rank and negative margins. Growth prospects show promise in terms of revenue, but earnings per share have seen a decline. The investment stakes of notable shareholders like Philippe Laffont (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), and Jim Simons (Trades, Portfolio) may provide some optimism for the company's future. Finally, when compared to key competitors, C3.ai Inc holds its own in terms of market capitalization, indicating a competitive stance in the 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.
