SMAR Scores High in Growth Investor Model with 88% Rating

A recent report reveals that Smartsheet Inc (SMAR) has achieved an impressive 88% rating in the P/B Growth Investor model, indicating strong fundamentals and stock valuation in the Software & Programming industry. This high score suggests positive investor interest in SMAR.

Date: 21-12-2024

AI Rating: 7

The report highlights Smartsheet Inc (SMAR) as a mid-cap value stock within the Software & Programming sector, achieving a notable 88% rating using the P/B Growth Investor model. This model is focused on identifying low book-to-market stocks that display potential for sustained growth.

The score positioned at 88% suggests a noteworthy level of interest in SMAR’s stock, as scores above 80% indicate some investor favor and values above 90% denote strong interest. Within the analysis of the stock's performance, several metrics were evaluated:

Book/Market Ratio: Pass
Return on Assets: Fail
Cash Flow from Operations to Assets: Fail
Cash Flow from Operations to Assets vs. Return on Assets: Pass
Return on Assets Variance: Pass
Sales Variance: Pass
Advertising to Assets: Pass
Capital Expenditures to Assets: Pass
Research and Development to Assets: Pass

The mixed results show that while SMAR performs well in several categories, particularly in variances and expenditures related to assets, the fails in Return on Assets and Cash Flow from Operations to Assets represent potential concerns for investors.

These failures may indicate inefficiencies in generating profit relative to the assets established, which could create uncertainties regarding the stock's long-term valuation and growth potential.

Overall, the stock's strong rating and growth signal, despite some weaknesses, could lead to investor optimism, although caution may be warranted given the highlighted shortcomings in key profitability metrics.

Stocks: SMAR