2024-03-15 09:15:53 ET
Summary
- Smartsheet Inc. disappointed investors with Q4 earnings showing decelerating growth rates and a high valuation.
- The introduction of AI features and a strong financial position offer some promise, but challenges remain in a competitive market.
- Smartsheet stock's forward non-GAAP EPS valuation of 34x is considered richly priced, leading to a sell rating.
Investment Thesis
Smartsheet Inc. ( SMAR ) fiscal Q4 2024 disappointed investors.
This is how I see SMAR: you have a stock that carries a punchy valuation at 34x forward non-GAAP EPS, facing decelerating growth rates, and where the underlying profitability of the business has for the most part maxed out and gone as far as it can go, for now....
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Smartsheet Q4 Earnings: Do Not Buy This Dip (Rating Downgrade)