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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Domo, Inc. (XNAS:DOMO) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
DOMO
Name:
DOMO, INC. (XNAS:DOMO)
Sector:
- 4506.00K
Industry:
Software�Application
CEO:
Mr. Joshua James
Total Employees:
917
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -101.55% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF DOMO, INC.(DOMO) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND SOFTWARE�APPLICATION INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
18.69
One Month Price Target:
$18.96
Six Month Price Target :
$20.29
Likely Price in One Year's Time:
Ticker:
$21.89
Likely Trading Range Today Under (Normal Volatility)
$18.55
Price Upper limit ($) :
$18.86
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$16.81
This week:
$14.49
This month :
$10.28
Other Primary facts
Market Cap:
645.22M
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
33.73M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
20.84%
-27.83%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$27.41
$23.41
$9.97
$13.97
Medium risk (<10%) entry points
Buy Call
Sell Call
$22.11
Buy Put:
Sell Put:
$21.25
$15.26
$16.13
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
DOMO
Sharpe Ratio:
1.63%
Comparison:
DOMO, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is 69.43% higher than the industry
& is -28.35% lower than the market/S&P 500 average
Average Returns/Yield of
DOMO
Daily returns:
0.09%
Weekly returns:
0.45%
Monthly returns:
1.79%
Yearly returns:
9.94%
Comparison of returns:
Average annual returns/yield (last 3 years) is 116.28% above industry average
Classification:
DOMO, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.83
Statistical test of Returns:
DOMO has not yielded statistically significant higher returns when compared to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
4.94%
Weekly Volatility:
11.05%
Monthly Volatility:
22.10%
Yearly Volatility:
76.55%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.78%
Volatility in last five trading days has been -63.96% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-10.06%
Weekly VaR:
-22.49%
Monthly VaR:
-44.98%
How Much Can the price of
DOMO
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-39%
Worst case (decline):
>85%
This translates to price declining to:
$11.45
This translates to price declining to:
$2.80
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
DOMO is a 217.50% riskier investment compared to the market/S&P 500 & is 172.00% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 37.47% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
DOMO
Beta in relation to market/S&P 500--2.55
Expected beta in 1 year's time:
1.463
Expected beta in 3 year's time:
2.069
Unlevered (debt free) Beta:
-27.879
Beta in relation to Nasdaq (XNAS):
1.811
Beta in relation to all global stocks::
1.058
Beta Comparison & Analysis
Beta of competitors/peers::
1.044
Beta is 144.32% higher than peers
Average Industry Beta:
1.335
Beta is 91.02% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
90.62%
Sustainable growth rate is 191.38% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.009
Alpha is -136.73% below industry average alpha yield
Alpha is 55% compared to market & is healthy
Analysis of Cost of Capital of
DOMO
Equity cost of capital:
0.206
Equity cost of capital is 67.71% above industry mean WACC
Unlevered (without debt) cost of capital:
-225.40%
Before-tax cost of debt:
-
After-tax cost of debt:
-
Overall debt rating:
-
Weighted average cost of capital (WACC):
-
-
Key Per-Share Metrics & Analysis
Revenue per share:
$8.08
Revenue growth rate per share of (3Y):
-6.78
Annual revenue growth rate is -46.29% below industry average
EPS:
-$3.58
Expected Annual growth rate of EPS (3Y):
-30.32%
Expected future EPS growth rate is -210.85% lower than the Software�Application industry
Free cash flow (FCF) per share:
-
-
-
Debt per share
$3.01
EBITDA per share
-$3.29
Valuation Analysis Today of
DOMO
P/E Ratio:
-
P/E Ratio of Competitors/Peers:
125.1
-
-
DOMO is -102.94% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
2.31
Price to sales ratio is -79.82% below the industry mean
P/B (Price to book value ratio):
-6.78
-
-
Net income growth rate (3Y):
-59.19%
Net income growth rate is -124.24% lower than the industry average net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
-109.30%
Net debt to equity ratio:
-21.65%
Debt to assets ratio:
52.81%
Net debt to assets ratio:
10.46%
Debt-to-asset ratio is -3.75% below industry average
Ability to repay debt:
Interest coverage ratio:
-
-
Looking forward:
Debt growth rate:
0.00%
-
Debt repayment rate in last quarter: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.58
Statistical significance of correlation:
DOMO has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.503
Stock price is 15.39% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.503
Correlation of price movement with Nasdaq (^IXIC):
-0.037
Covariance of price movement with the market:
-0.107
Kurtosis
4.127
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.336
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
DOMO
Gross Profit Margin Ratio:
297%
Operating Profit Margin Ratio:
-37.51%
Operating profit margin is 95.73% higher than the industry
Net Profit Margin Ratio:
297%
Effective Tax Rate:
0.14%
Effective tax rate is -99.48% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
125.76%
Return on equity (ROE) is -1061.56% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
-60.76%
Return on assets (ROA) is 1482.10% higher than the industry
Financial Leverage:
2.1x
Current Ratio:
0.82
Current ratio is -72.54% below industry average
Cash Conversion Cycle (days):
-11.5
Cash conversion cycle is -112.15% below industry average
The remaining useful life of property plant & equipment is: 6.0 years
Stock based compensation to net income ratio:
-8.61%
In-depth Efficiency Analysis
Revenue generated per employee:
297.0K
Each employee generates -14% less revenue than industry average revenue per employee
EBITDA generated per employee:
- 121.2K
Each employee generates -1227% less EBITDA than industry average revenue per employee
Profit generated per employee:
- 127.5K
Each employee generates 631% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 4.9K
Each employee generates -37% less free cash flow than industry average revenue per employee
Assets/Capital per employee
55.6K
Each employee generates -37% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- -3.97%
Growth rate in R&D investment/expenditure is -359.84% lower than the industry
Competitors/Peer firms of
DOMO
VIANT TECHNOLOGY INC. (XNAS:DSP)
PROGRESS SOFTWARE CORPORATION (XNAS:PRGS)
COHU, INC. (XNAS:COHU)
Canaan Inc (XNAS:CAN)
SUPER MICRO COMPUTER, INC. (XNAS:SMCI)
INFINERA CORPORATION (XNAS:INFN)
Sumo Logic Inc (XNAS:SUMO)
TELOS CORPORATION (XNAS:TLS)
BOTTOMLINE TECHNOLOGIES, INC. (XNAS:EPAY)
Current Analyst Ratings
Strong buy�4%
Buy�17%
Hold�4%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
4/30/22
Revenue:
272.36M
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
69.65M
202.71M
88.03M
60.98M
216.83M
155.86M
-
304.87M
-
-
5.94M
- 111114.00K
- 102151.00K
- 116895.00K
- 117056.00K
- 161.00K
- 116895.00K
Statement of Cash Flow
Date:
Period:
1.03M
Differed Income Tax :
-
Stock Based Compensation :
10.06M
Change in Working Capital :
- 1425.00K
Accounts Receivables:
15.27M
Other Working Capital:
- 5431.00K
Other Non-Cash Items:
5.71M
Net Cash Provided by Operating Activities:
- 2728.00K
Investments in PP&E:
- 1778.00K
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
4/30/21
2022
Q1
84.83M
-
84.83M
33.00M
-
23.58M
141.40M
18.57M
9.48M
3.20M
-
-
19.72M
50.97M
-
192.38M
4.46M
3.36M
8.95M
128.51M
35.56M
171.89M
101.59M
9.92M
113.43M
-
285.33M
31.00K
- 1140476.00K
873.0K
1.05B
April 30, 2021 at 6:00:00 AM
374.51M
- 92949.00K
192.38M
-
104.95M
20.1M
-
-
- 1778.00K
-
-
- 6244.00K
-
4.79M
- 1457.00K
- 5.00K
- 5968.00K
84.83M
90.79M
- 2728.00K
- 1778.00K
- 4506.00K
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
DOMO
2023
2024
2025
2026
2027
$21.96
$25.72
$30.13
$35.30
$41.35