Instructure Holdings Inc (INST, Financial), a prominent player in the education technology sector, has experienced a notable fluctuation in its stock price recently. With a current market capitalization of $3.64 billion and a stock price of $24.96, the company has seen a 3.14% decrease over the past week but a significant 15.64% increase over the past three months. According to GuruFocus, the GF Value of Instructure is currently $29.94, suggesting that the stock is modestly undervalued, a status consistent with its valuation three months ago at $27.24.
Overview of Instructure Holdings Inc
Instructure Holdings Inc, operating in the software industry, is dedicated to enhancing educational experiences through its comprehensive platform. This platform includes a variety of tools for K-12, higher education, and continuing education sectors, featuring products like Canvas LMS and Canvas Studio. The company's solutions are designed to be open, extendable, and highly integrated, aiming to improve student outcomes through better learning and teaching processes.
Assessing Profitability
Despite its innovative offerings, Instructure's financial health, as indicated by its Profitability Rank, is relatively low at 2/10. The company's Operating Margin stands at -0.61%, which is better than 40.09% of 2,734 companies in the same sector. Additionally, its Return on Equity (ROE) and Return on Assets (ROA) are -3.39% and -1.90% respectively, positioning it better than 36.6% and 40.39% of its industry peers. The Return on Invested Capital (ROIC) is -0.13%, higher than 43.04% of competitors.
Growth Metrics
While specific growth metrics and industry rankings are not provided, Instructure's recent stock price increase suggests some positive developments. These could be related to new product launches, market expansion, or improved operational efficiencies. Further research would be required to provide a detailed analysis of Instructure's growth compared to its industry.
Notable Shareholders
Instructure's investor base includes notable figures such as Jim Simons, who holds 267,500 shares, representing 0.18% of the company, and Steven Cohen (Trades, Portfolio), who owns 39,300 shares, or 0.03% of the company. Their involvement underscores a level of confidence in the firm's potential.
Competitive Landscape
Instructure operates in a competitive landscape with companies like Lyft Inc (LYFT, Financial) with a market cap of $5.38 billion, Vertex Inc (VERX, Financial) valued at $5.51 billion, and Clearwater Analytics Holdings Inc (CWAN, Financial) at $4.09 billion. These companies, while varying in their specific offerings, represent significant competition in the broader technology and software market.
Conclusion
In conclusion, Instructure Holdings Inc presents an interesting case for investors. The company's current valuation suggests it is modestly undervalued, providing a potential opportunity for value investors. However, its low profitability rank and negative profitability metrics indicate some risks. Investors should weigh these factors along with the company's growth potential and competitive position before making investment 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.
