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CONFLUENT INC-CLASS A (CFLT) Stock Fundamental Analysis

NASDAQ:CFLT - Nasdaq - US20717M1036 - Common Stock - Currency: USD

30.1  -1.36 (-4.32%)

Premarket: 33 +2.9 (+9.63%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to CFLT. CFLT was compared to 283 industry peers in the Software industry. The financial health of CFLT is average, but there are quite some concerns on its profitability. CFLT is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year CFLT was profitable.
CFLT had a positive operating cash flow in the past year.
In the past 5 years CFLT always reported negative net income.
In the past 5 years CFLT always reported negative operating cash flow.
CFLT Yearly Net Income VS EBIT VS OCF VS FCFCFLT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 -100M -200M -300M -400M

1.2 Ratios

CFLT's Return On Assets of -13.46% is on the low side compared to the rest of the industry. CFLT is outperformed by 64.86% of its industry peers.
The Return On Equity of CFLT (-37.58%) is worse than 65.22% of its industry peers.
Industry RankSector Rank
ROA -13.46%
ROE -37.58%
ROIC N/A
ROA(3y)-17.31%
ROA(5y)-28.33%
ROE(3y)-51.25%
ROE(5y)-73.21%
ROIC(3y)N/A
ROIC(5y)N/A
CFLT Yearly ROA, ROE, ROICCFLT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 -20 -40 -60 -80 -100

1.3 Margins

The Gross Margin of CFLT (73.03%) is better than 60.51% of its industry peers.
In the last couple of years the Gross Margin of CFLT has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for CFLT so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 73.03%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.14%
GM growth 5Y-1.21%
CFLT Yearly Profit, Operating, Gross MarginsCFLT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 50 -50

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5

2. Health

2.1 Basic Checks

CFLT does not have a ROIC to compare to the WACC, probably because it is not profitable.
There is no outstanding debt for CFLT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
CFLT Yearly Shares OutstandingCFLT Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 100M 200M 300M
CFLT Yearly Total Debt VS Total AssetsCFLT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

2.2 Solvency

CFLT has an Altman-Z score of 3.16. This indicates that CFLT is financially healthy and has little risk of bankruptcy at the moment.
CFLT has a Altman-Z score of 3.16. This is comparable to the rest of the industry: CFLT outperforms 52.17% of its industry peers.
CFLT has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.17, CFLT is doing worse than 78.62% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.17
Debt/FCF N/A
Altman-Z 3.16
ROIC/WACCN/A
WACC13.77%
CFLT Yearly LT Debt VS Equity VS FCFCFLT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 0 200M 400M 600M 800M 1B

2.3 Liquidity

CFLT has a Current Ratio of 4.24. This indicates that CFLT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.24, CFLT belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
A Quick Ratio of 4.24 indicates that CFLT has no problem at all paying its short term obligations.
CFLT has a better Quick ratio (4.24) than 84.78% of its industry peers.
Industry RankSector Rank
Current Ratio 4.24
Quick Ratio 4.24
CFLT Yearly Current Assets VS Current LiabilitesCFLT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

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4

3. Growth

3.1 Past

CFLT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1400.00%, which is quite impressive.
EPS 1Y (TTM)1400%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%22.53%

3.2 Future

The Earnings Per Share is expected to grow by 19.51% on average over the next years. This is quite good.
Based on estimates for the next years, CFLT will show a very strong growth in Revenue. The Revenue will grow by 20.72% on average per year.
EPS Next Y17.32%
EPS Next 2Y30.4%
EPS Next 3Y21.69%
EPS Next 5Y19.51%
Revenue Next Year21.28%
Revenue Next 2Y21.38%
Revenue Next 3Y20.89%
Revenue Next 5Y20.72%

3.3 Evolution

CFLT Yearly Revenue VS EstimatesCFLT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 1B 2B 3B
CFLT Yearly EPS VS EstimatesCFLT Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 0.5 -0.5

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 100.33, which means the current valuation is very expensive for CFLT.
The rest of the industry has a similar Price/Earnings ratio as CFLT.
Compared to an average S&P500 Price/Earnings ratio of 29.39, CFLT is valued quite expensively.
CFLT is valuated quite expensively with a Price/Forward Earnings ratio of 85.52.
The rest of the industry has a similar Price/Forward Earnings ratio as CFLT.
CFLT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 94.38, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 100.33
Fwd PE 85.52
CFLT Price Earnings VS Forward Price EarningsCFLT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
CFLT Per share dataCFLT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 1 1.5 2 2.5

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CFLT's earnings are expected to grow with 21.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.79
PEG (5Y)N/A
EPS Next 2Y30.4%
EPS Next 3Y21.69%

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0

5. Dividend

5.1 Amount

CFLT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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CONFLUENT INC-CLASS A

NASDAQ:CFLT (2/11/2025, 8:11:51 PM)

Premarket: 33 +2.9 (+9.63%)

30.1

-1.36 (-4.32%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-11 2025-02-11/amc
Earnings (Next)N/A N/A
Inst Owners93.76%
Inst Owner Change-40.36%
Ins Owners3.72%
Ins Owner Change-3.1%
Market Cap9.87B
Analysts77.95
Price Target33.45 (11.13%)
Short Float %5.18%
Short Ratio3.32
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)58.97%
Min EPS beat(2)26.5%
Max EPS beat(2)91.45%
EPS beat(4)4
Avg EPS beat(4)86.71%
Min EPS beat(4)26.5%
Max EPS beat(4)152.55%
EPS beat(8)8
Avg EPS beat(8)140.58%
EPS beat(12)12
Avg EPS beat(12)99.59%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)0.19%
Min Revenue beat(2)0.18%
Max Revenue beat(2)0.2%
Revenue beat(4)4
Avg Revenue beat(4)0.65%
Min Revenue beat(4)0.18%
Max Revenue beat(4)1.83%
Revenue beat(8)8
Avg Revenue beat(8)0.93%
Revenue beat(12)12
Avg Revenue beat(12)2.09%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.79%
PT rev (3m)9.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.85%
EPS NY rev (1m)0%
EPS NY rev (3m)15.76%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-3.23%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.59%
Valuation
Industry RankSector Rank
PE 100.33
Fwd PE 85.52
P/S 10.78
P/FCF N/A
P/OCF 941.85
P/B 10.57
P/tB 12.97
EV/EBITDA N/A
EPS(TTM)0.3
EY1%
EPS(NY)0.35
Fwd EY1.17%
FCF(TTM)-0.04
FCFYN/A
OCF(TTM)0.03
OCFY0.11%
SpS2.79
BVpS2.85
TBVpS2.32
PEG (NY)5.79
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -13.46%
ROE -37.58%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 73.03%
FCFM N/A
ROA(3y)-17.31%
ROA(5y)-28.33%
ROE(3y)-51.25%
ROE(5y)-73.21%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.14%
GM growth 5Y-1.21%
F-Score6
Asset Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 1.17
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 117.83%
Cap/Sales 2.54%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 4.24
Quick Ratio 4.24
Altman-Z 3.16
F-Score6
WACC13.77%
ROIC/WACCN/A
Cap/Depr(3y)194.9%
Cap/Depr(5y)225.01%
Cap/Sales(3y)2.48%
Cap/Sales(5y)2.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1400%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y17.32%
EPS Next 2Y30.4%
EPS Next 3Y21.69%
EPS Next 5Y19.51%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%22.53%
Revenue Next Year21.28%
Revenue Next 2Y21.38%
Revenue Next 3Y20.89%
Revenue Next 5Y20.72%
EBIT growth 1Y16.08%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year161.6%
EBIT Next 3Y66.26%
EBIT Next 5YN/A
FCF growth 1Y92.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y106.8%
OCF growth 3YN/A
OCF growth 5YN/A