Alkami Technology Inc (ALKT, Financial), a leading player in the software industry, has seen a significant surge in its stock price over the past three months. The company's stock price has risen by an impressive 30.29% during this period, marking a notable gain for investors. Over the past week alone, the stock has seen a 19.97% increase, closing at $21.91. When compared to the GF Value of $20.18, the stock appears to be fairly valued. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates.
Unveiling Alkami Technology Inc
Alkami Technology Inc operates in the software industry, providing cloud-based digital banking solutions. The company's Alkami Platform enables Financial Institutions (FIs) to onboard and engage new users, accelerate revenues, and significantly improve operational efficiency. This is made possible through a proprietary, true cloud-based, multi-tenant architecture. With a market capitalization of $2.09 billion, Alkami has positioned itself as a key player in the industry.
Dissecting Alkami's Profitability
Despite its impressive stock performance, Alkami's profitability rank stands at a low 1/10 as of September 30, 2023. The company's operating margin is -27.53%, which is better than 22.68% of the companies in the industry. Alkami's ROE and ROA stand at -16.86% and -11.43% respectively, outperforming 27.51% and 28.1% of the companies in the sector. The company's ROIC is -25.19%, better than 20.91% of the companies in the industry.
Assessing Alkami's Growth
Alkami's 3-Year Revenue Growth Rate per Share is 36.40%, outperforming 88.36% of the companies in the industry. However, the company's 3-Year EPS without NRI Growth Rate is -14.90%, which is better than only 25.64% of the companies in the sector.
Alkami's Stock Holders
Chuck Royce (Trades, Portfolio) and Ron Baron (Trades, Portfolio) are the top two holders of Alkami's stock. Chuck Royce (Trades, Portfolio) holds 1,040,491 shares, accounting for 1.1% of the total shares, while Ron Baron (Trades, Portfolio) holds 774,066 shares, representing 0.82% of the total shares.
Alkami's Competitive Landscape
Alkami faces stiff competition from Zeta Global Holdings Corp (ZETA, Financial), ePlus Inc (PLUS, Financial), and Q2 Holdings Inc (QTWO, Financial), with market caps of $1.74 billion, $1.73 billion, and $1.97 billion respectively. Despite the competition, Alkami's recent stock performance and growth rate indicate a promising future.
Conclusion
In conclusion, Alkami Technology Inc has demonstrated impressive stock performance over the past three months, with a 30.29% increase. Despite its low profitability rank, the company's growth rate and market position suggest potential for future success. However, investors should keep an eye on the company's profitability metrics and competitive landscape to make informed decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
