Docebo Inc (DCBO, Financial), a company specializing in cloud-based learning management systems, has recently experienced a notable fluctuation in its stock price. With a current market capitalization of $1.43 billion and a stock price of $47.09, Docebo's shares have seen a decline of 3.61% over the past week. However, looking at a broader time frame, the stock has rallied by 12.34% over the past three months. This performance is particularly interesting when considering the company's GF Value, which stands at $57.68, suggesting that the stock is modestly undervalued. This is a shift from three months ago when the GF Value was at $86.46, indicating the stock was significantly undervalued at that time.
Understanding Docebo's Business Model
Docebo Inc operates within the competitive software industry, providing a subscription-based platform for e-learning solutions. The company's revenue structure is primarily based on a per-learner, per-module basis, with a focus on North American customers. Docebo's business model emphasizes long-term customer commitments, typically ranging from one to three years, and does not allow for termination for convenience. This approach ensures a steady revenue stream and reflects the company's commitment to delivering value to its clients over time.
Profitability Analysis
Docebo's Profitability Rank currently stands at 4 out of 10. The company's operating margin is -1.69%, which is better than 40.46% of companies in the industry. Its Return on Equity (ROE) is 0.79%, surpassing 45.93% of its peers, while the Return on Assets (ROA) is 0.48%, which is higher than 49.73% of the industry. The Return on Invested Capital (ROIC) stands at -1.18%, outperforming 42.85% of competitors. Despite these figures, Docebo has only achieved profitability in one of the past ten years, which is better than 9.93% of companies in the sector.
Growth Prospects and Industry Standing
Docebo's Growth Rank is impressive at 9 out of 10. The company has demonstrated a strong 3-Year Revenue Growth Rate per Share of 36.50%, outpacing 88.4% of its industry counterparts. The 5-Year Revenue Growth Rate per Share is even more remarkable at 49.80%, better than 96.44% of the industry. Looking ahead, the estimated Total Revenue Growth Rate for the next 3 to 5 years is 22.82%, which is superior to 87.88% of the industry. The 3-Year EPS without NRI Growth Rate is 42.60%, and the 5-Year EPS without NRI Growth Rate is 14.20%, indicating a strong trajectory for future earnings.
Key Shareholders in Docebo
Among the notable shareholders of Docebo Inc, Baillie Gifford (Trades, Portfolio) holds 236,292 shares, representing a 0.74% stake in the company. Another significant investor is Jim Simons (Trades, Portfolio), with 46,400 shares, accounting for a 0.15% share. These investors' commitment to Docebo reflects confidence in the company's long-term growth potential and strategic direction.
Competitive Landscape
When comparing Docebo to its competitors, we see that Enghouse Systems Ltd (TSX:ENGH, Financial) has a market cap of $1.5 billion, Lumine Group Inc (TSXV:LMN, Financial) is valued at $1.74 billion, and Computer Modelling Group Ltd (TSX:CMG, Financial) stands at $591.839 million. These companies, operating within the same software industry, provide a context for Docebo's performance and valuation in the market.
Conclusion: Docebo's Market Position and Outlook
In summary, Docebo Inc's recent stock performance, with a 12.34% increase over the past three months, reflects a positive market sentiment. The company's current GF Value indicates that the stock is modestly undervalued, presenting a potential opportunity for investors. Docebo's profitability metrics, although not leading the industry, show a competitive edge in certain areas. The company's robust growth rates and favorable future revenue estimates suggest a strong potential for continued expansion. With significant shareholders maintaining their stakes and a competitive stance in the industry, Docebo Inc appears well-positioned for future success.
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.
