Docebo, Inc. (DCBO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Descartes Systems Group, Inc.

Lumine Group, Inc.

BlackBerry Ltd.

Docebo, Inc.

Kinaxis, Inc.

Enghouse Systems Ltd.

Constellation Software, Inc.

Open Text Corp.

Topicus.com, Inc.

Lightspeed Commerce, Inc.

Dye & Durham Ltd.

Why is Docebo, Inc. ?

Strong Long Term Fundamental Strength with a 36.23% CAGR growth in Net Sales

Company has a low Debt to Equity ratio (avg) at times

The company has declared Positive results for the last 4 consecutive quarters

ROCE(HY) Highest at 56.52%
NET SALES(Q) Highest at CAD 84.05 MM
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost

With ROE of 63.04%, it has a very expensive valuation with a 26.23 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -34.46%, its profits have risen by 37% ; the PEG ratio of the company is 1.1

Rising Promoter Confidence

Promoters have increased their stake in the company by 1.2% over the previous quarter and currently hold 12.37% of the company
Promoters increasing their stake is a sign of high confidence in the future of the business

Below par performance in long term as well as near term

Along with generating -34.46% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Docebo, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Docebo, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Docebo, Inc.

-37.35%

-0.62

39.48%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

32.11%

EBIT Growth (5y)

45.78%

EBIT to Interest (avg)

0.24

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.73

Sales to Capital Employed (avg)

3.95

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

58.90%

ROCE (avg)

ROE (avg)

11.92%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.72

EV to EBIT

20.08

EV to EBITDA

17.76

EV to Capital Employed

683.20

EV to Sales

2.01

PEG Ratio

0.31

Dividend Yield

ROCE (Latest)

3401.75%

ROE (Latest)

51.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 43.83 MM

ROCE(HY)

Highest at 50.79%

NET SALES(Q)

Highest at CAD 84.86 MM

RAW MATERIAL COST(Y)

Fallen by 0.55% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.51 times

OPERATING PROFIT(Q)

Highest at CAD 12.24 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.42 %

PRE-TAX PROFIT(Q)

At CAD 11.36 MM has Grown at 55.56%

-10What is not working for the Company

INTEREST(HY)

At CAD 0.17 MM has Grown at 72.78%

NET PROFIT(9M)

At CAD 14.8 MM has Grown at -26.73%

Here's what is working for Docebo, Inc.

Operating Cash Flow

Highest at CAD 43.83 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

Highest at CAD 84.86 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 12.24 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 14.42 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At CAD 11.36 MM has Grown at 55.56%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Debtors Turnover Ratio

Highest at 5.51 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 0.55% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Docebo, Inc.

Interest

At CAD 0.17 MM has Grown at 72.78%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Profit

At CAD 14.8 MM has Grown at -26.73%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)