Everbridge Inc (EVBG, Financial), a prominent player in the software industry, has recently witnessed a notable uptick in its stock performance. With a current market capitalization of $1.45 billion, the company's shares are trading at $35.2. Over the past week, Everbridge's stock price has seen a marginal gain of 0.07%. However, the past three months have been significantly more impressive, with a gain of 38.85%. This surge in stock price has brought the company's valuation in line with the GF Value of $35.6, which suggests that the stock is currently fairly valued. This is a notable shift from three months ago when the stock was considered a possible value trap, with a past GF Value of $40.78, indicating that investors should think twice before investing.
Introduction to Everbridge Inc
Everbridge Inc is a software company that specializes in providing a SaaS-based Critical Event Management platform. This platform is designed to help organizations respond to critical events effectively, ensuring the safety of individuals and continuity of operations. The company caters to a diverse range of industries, including technology, energy, financial services, healthcare, life sciences, manufacturing, media, entertainment, retail, higher education, and professional services. With the majority of its revenue generated from the United States, Everbridge stands as a key provider of critical communication solutions in various sectors.
Analyzing Everbridge's Profitability
Everbridge's financial health, as indicated by its Profitability Rank, is currently at 3 out of 10. The company's operating margin stands at -12.87%, which, despite being negative, fares better than 28.74% of 2,787 companies in the industry. Its Return on Equity (ROE) is at -16.00%, surpassing 26.79% of its peers. The Return on Assets (ROA) is -4.41%, which is more favorable than 37.12% of the industry, and the Return on Invested Capital (ROIC) is at -6.29%, outperforming 34.67% of competitors. These figures suggest that while Everbridge is not among the most profitable in its sector, it does maintain a competitive edge over a significant portion of its peers.
Growth Prospects of Everbridge
Everbridge's Growth Rank is a robust 7 out of 10. The company has demonstrated a solid 3-Year Revenue Growth Rate per Share of 9.50%, which is better than 52.43% of 2,405 companies in the same industry. Its 5-Year Revenue Growth Rate per Share is even more impressive at 15.70%, surpassing 74.88% of its industry peers. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 3.68%, which is more favorable than 17.68% of the industry. These growth metrics indicate that Everbridge is on a positive trajectory, outpacing many of its competitors in terms of revenue expansion.
Significant Shareholders in Everbridge
Among the notable shareholders of Everbridge, Chuck Royce (Trades, Portfolio) holds 204,876 shares, representing a 0.5% stake in the company. Following closely is First Eagle Investment (Trades, Portfolio) with 189,383 shares, accounting for 0.46% of the company's shares. Paul Tudor Jones (Trades, Portfolio) also has a significant position, holding 74,892 shares, which translates to a 0.18% share percentage. These investors' commitments to Everbridge reflect their confidence in the company's future prospects and strategic direction.
Competitive Landscape
In comparison to its competitors, Everbridge maintains a strong market presence. WalkMe Ltd (WKME, Financial) has a market capitalization of $832.378 million, while PAR Technology Corp (PAR, Financial) stands at $1.22 billion, and Karooooo Ltd (KARO, Financial) at $773.159 million. Everbridge's market cap of $1.45 billion positions it as a significant competitor within the software industry, indicating its ability to maintain a competitive edge against these closely matched companies.
Conclusion
In summary, Everbridge Inc's recent stock performance has been impressive, with a significant gain over the past three months, aligning its valuation with the GF Value's assessment of being fairly valued. The company's profitability, while not at the top of its industry, shows competitive strength in several key metrics. Growth prospects remain promising, with solid revenue growth rates and positive future estimates. The confidence of significant shareholders and a strong position within the competitive landscape further bolster the company's standing. As Everbridge continues to navigate the software industry, its stock performance and valuation will be key indicators to watch for value investors.
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.
