Atlassian Corporation Fundamental Analysis (NASDAQ: TEAM)
Atlassian Corporation Fundamental Analysis (NASDAQ: TEAM)
Atlassian Corporation (NASDAQ: TEAM) shows weak financial fundamentals with a PE ratio of 435.08, profit margin of 1.28%, and ROE of 8.00%. The company generates $6.9B in annual revenue with strong year-over-year growth of 19.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TEAM's fundamental strength across five key dimensions:
Efficiency Score
WeakTEAM struggles to generate sufficient returns from assets.
Valuation Score
ModerateTEAM shows balanced valuation metrics.
Growth Score
ExcellentTEAM delivers strong and consistent growth momentum.
Financial Health Score
WeakTEAM carries high financial risk with limited liquidity.
Profitability Score
WeakTEAM struggles to sustain strong margins.
Key Financial Metrics
Is TEAM Expensive or Cheap?
P/E Ratio
TEAM trades at 435.08 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TEAM's PEG of 1.00 indicates fair valuation.
Price to Book
The market values Atlassian Corporation at 42.15 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 83.66 times EBITDA. This signals the market has high growth expectations.
How Well Does TEAM Make Money?
Net Profit Margin
For every $100 in sales, Atlassian Corporation keeps $1.28 as profit after all expenses.
Operating Margin
Core operations generate 4.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.00 in profit for every $100 of shareholder equity.
ROA
Atlassian Corporation generates $1.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Atlassian Corporation produces operating cash flow of $1.70B, showing steady but balanced cash generation.
Free Cash Flow
Atlassian Corporation generates strong free cash flow of $1.67B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.61 in free cash annually.
FCF Yield
TEAM converts 4.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
435.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.000
vs 25 benchmark
P/B Ratio
Price to book value ratio
42.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.72
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How TEAM Stacks Against Its Sector Peers
| Metric | TEAM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 435.08 | 32.70 | Worse (Expensive) |
| ROE | 8.00% | 758.00% | Weak |
| Net Margin | 1.28% | -4312.00% (disorted) | Weak |
| Debt/Equity | 1.35 | 0.96 | Weak (High Leverage) |
| Current Ratio | 0.72 | 12.15 | Weak Liquidity |
| ROA | 1.61% | 1067467.00% | Weak |
TEAM outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Atlassian Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
202.18%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
31.54%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
137.87%
Industry Style: Growth, Innovation, High Beta
High Growth