Alteryx Inc (AYX, Financial), a prominent player in the software industry, has experienced a notable fluctuation in its stock price over recent periods. With a current market capitalization of $2.83 billion, the stock is trading at $39.4, reflecting a 4.43% gain over the past week. However, the past three months have painted a different picture, with a significant 36.85% loss in value. This decline has brought the stock below its GF Value of $91.37, a stark contrast to its past GF Value of $122.61. The current and past GF Valuations both suggest a Possible Value Trap, advising investors to think twice before making a decision.
Introduction to Alteryx Inc
Alteryx Inc (AYX, Financial) specializes in self-service data analytics software, providing a subscription-based platform that simplifies data engineering, analytics, reporting, machine learning, and data science processes. The company's mission is to democratize data analytics across organizations, enabling a wide range of use cases and generating revenue through its software platform. Amidst the dynamic landscape of data analytics, Alteryx stands out for its user-friendly automation capabilities.
Assessing Alteryx's Profitability
Alteryx's Profitability Rank stands at 4/10, indicating challenges in maintaining consistent profitability. The company's Operating Margin is currently at -25.58%, which, despite being unfavorable, is better than 22.97% of 2,778 companies in the same industry. Alteryx's Return on Equity (ROE) is deeply negative at -253.08%, yet it still outperforms 3.23% of its industry peers. Similarly, the Return on Assets (ROA) and Return on Invested Capital (ROIC) are at -17.66% and -21.31%, respectively, surpassing a small fraction of competitors. Over the past decade, Alteryx has only managed to achieve profitability in two years, which is better than 18.92% of 2,246 companies.
Growth Prospects of Alteryx
The Growth Rank for Alteryx is an impressive 7/10, reflecting strong revenue expansion over recent years. The company's 3-Year Revenue Growth Rate per Share stands at 27.10%, outperforming 82.24% of 2,404 companies in the industry. The 5-Year Revenue Growth Rate per Share is even more remarkable at 34.70%, surpassing 92.91% of 1,889 companies. Looking ahead, the estimated Total Revenue Growth Rate for the next 3 to 5 years is 11.32%, which is better than 53.17% of 504 companies. These figures suggest that Alteryx has a robust growth trajectory, despite current profitability challenges.
Notable Shareholders in Alteryx
Alteryx has attracted the attention of several prominent investors. Steven Cohen (Trades, Portfolio) leads the pack with 680,427 shares, representing a 0.95% stake in the company. Following him is Paul Tudor Jones (Trades, Portfolio), holding 175,574 shares, which equates to a 0.24% share percentage. Ken Fisher (Trades, Portfolio) also has a significant investment in Alteryx, with 154,854 shares, accounting for 0.22% of the company's shares.
Competitive Landscape
When compared to its competitors, Alteryx Inc holds its ground with a market cap equal to that of JFrog Ltd (FROG, Financial), which is also valued at $2.83 billion. Progress Software Corp (PRGS, Financial) has a slightly lower market cap of $2.33 billion, while Calix Inc (CALX, Financial) is close behind with a market cap of $2.52 billion. These companies represent the competitive environment in which Alteryx operates, each vying for a significant share of the data analytics market.
Investment Outlook and Conclusion
In conclusion, Alteryx Inc's stock performance has been a mixed bag, with recent gains overshadowed by a substantial loss over the past three months. The company's profitability metrics, while not entirely promising, do show potential when compared to a subset of industry peers. Growth prospects remain strong, as evidenced by the company's impressive revenue growth rates and future estimates. However, the current GF Valuation suggests caution, labeling the stock as a possible value trap. Investors should weigh these factors, alongside the company's market position and competitive standing, before making investment decisions. As the data analytics sector continues to evolve, Alteryx's ability to innovate and capitalize on market trends will be critical to its success and attractiveness to 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.
