2024-05-07 06:55:22 ET
Summary
- Informatica has successfully transformed into a software-as-a-service data management business model.
- EBITDA margins have doubled to 30% since 2018 on revenue growth of just 5%.
- Valuation may be clouded by significant goodwill amortization that hides significant cash earnings.
- Consensus YE24 price target of US$38.5 backs into a 1.5x PEG (cash ESP).
- I rate it a BUY given low growth expectations, high free cash flow, reasonable valuations, and M&A target status.
Summary
Read the full article on Seeking Alpha
For further details see:
Informatica: Growth, Cash Flow, Valuation, And M&A Target