Nextdoor Holdings, Inc. Fundamental Analysis (NASDAQ: NXDR)
Nextdoor Holdings, Inc. Fundamental Analysis (NASDAQ: NXDR)
Nextdoor Holdings, Inc. (NASDAQ: NXDR) shows moderate financial fundamentals with a PE ratio of -42.55, profit margin of -6.41%, and ROE of -4.41%. The company generates $0.3B in annual revenue with moderate year-over-year growth of 4.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 24.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NXDR's fundamental strength across five key dimensions:
Efficiency Score
WeakNXDR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNXDR trades at attractive valuation levels.
Growth Score
ModerateNXDR shows steady but slowing expansion.
Financial Health Score
ExcellentNXDR maintains a strong and stable balance sheet.
Profitability Score
WeakNXDR struggles to sustain strong margins.
Key Financial Metrics
Is NXDR Expensive or Cheap?
P/E Ratio
NXDR trades at -42.55 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NXDR's PEG of -0.29 indicates potential undervaluation.
Price to Book
The market values Nextdoor Holdings, Inc. at 1.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -33.36 times EBITDA. This is generally considered low.
How Well Does NXDR Make Money?
Net Profit Margin
For every $100 in sales, Nextdoor Holdings, Inc. keeps $-6.41 as profit after all expenses.
Operating Margin
Core operations generate -11.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-4.41 in profit for every $100 of shareholder equity.
ROA
Nextdoor Holdings, Inc. generates $-3.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nextdoor Holdings, Inc. produces operating cash flow of $37.65M, showing steady but balanced cash generation.
Free Cash Flow
Nextdoor Holdings, Inc. generates strong free cash flow of $36.53M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.09 in free cash annually.
FCF Yield
NXDR converts 4.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-42.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
11.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.04
vs 25 benchmark
ROA
Return on assets percentage
-0.04
vs 25 benchmark
ROCE
Return on capital employed
-0.08
vs 25 benchmark
How NXDR Stacks Against Its Sector Peers
| Metric | NXDR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -42.55 | 18.71 | Better (Cheaper) |
| ROE | -4.41% | 905.00% | Weak |
| Net Margin | -6.41% | 1010.00% | Weak |
| Debt/Equity | 0.06 | -0.06 (disorted) | Distorted |
| Current Ratio | 11.83 | 1.82 | Strong Liquidity |
| ROA | -3.93% | 295.00% | Weak |
NXDR outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nextdoor Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
107.16%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
28.58%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
115.42%
Industry Style: Growth, Technology, Streaming
High Growth