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OneStream - AI Stock Analysis
Analysis generated February 18, 2025
Founded with the vision to simplify business complexity and unleash the power of finance, OneStream is a prominent player in the financial corporate performance management (CPM) software industry. The company's platform provides a unified solution that simplifies and aligns various financial processes, fosters collaboration, and enhances data integrity. OneStream's core offerings include budgeting, planning, forecasting, financial consolidation, reporting, and analytics. With a mission to modernize finance, OneStream has garnered a significant client base, ranging from mid-size companies to large enterprises.
Fundamental Analysis
OneStream's revenue for the last quarter stood at $129 million, exhibiting a healthy quarter-over-quarter growth of 9.91%. This upward trend is a positive sign, indicating increasing acceptance and demand for OneStream's products and services. Additionally, the year-over-year revenue growth stands at 20.69%, which underscores the company's strong market position and successful client acquisitions.
However, the net income for the last quarter poses significant concerns. It came in at $172 million, which represents a drastic decrease of 2,090.36% compared to the previous quarter. The year-over-year decline is even more severe at 2,642.03%. This suggests that while revenues are growing, expenses, including operational and possibly extraordinary costs, are substantially outpacing revenue gains.
The EBITDA for the last quarter was reported at $255 million, reflecting a decrease of 2,287.23% quarter-over-quarter and 3,743.74% year-over-year. This stark decline in EBITDA highlights significant challenges in achieving operational efficiency and profitability.
An additional concern is the pattern of insider selling observed in recent months. Insider selling often signals that those with the most intimate knowledge of the company’s prospects may have a lack of confidence in the short-term performance of the stock.
Technical Analysis
The current stock price of $24.71 is down by 13.72% from a month ago and 7.97% from a year ago, indicating a bearish trend in both the short and long term. The stock’s Simple Moving Average (SMA10) is at 26.48, which is marginally lower than the previous SMA10 of 26.91. This slight decline suggests a potential continuation of the downward trend in the near term.
The Relative Strength Index (RSI) for OneStream is currently at 52.8, which is within neutral territory but edging towards bearish sentiment. Typically, an RSI below 30 indicates an oversold condition, while above 70 suggests overbought conditions. The current RSI advises caution as it hovers near the mid-point but on a downward trend.
Alternative Data Analysis
When looking at the job market data, OneStream has 35 open positions, reflecting a 6% increase in the past few months. This could be seen as a positive indicator, suggesting that the company is gearing up for expansion and bolstering its talent pool. However, the employee sentiment remains neutral, which does not provide a clear positive or negative outlook regarding internal company culture.
The customer acquisition metrics show a less optimistic trend. OneStream's website had an estimated 120,000 visitors, down by 13% in recent months. This decline could indicate diminishing interest or potential loss of customers. Additionally, the customer engagement on social media is stagnant, with 2,100 Twitter followers and no significant change noted.
According to the AltIndex’s AI score, OneStream has a rating of 54, which is interpreted as a hold signal. This score considers fundamental, technical, and alternative data analyses, suggesting that the stock may be fairly valued at its current price point.
Conclusion and Recommendation
In summary, despite OneStream's positive revenue growth and market expansion efforts, the significant declines in net income and EBITDA alongside a downward-trending stock price raise substantial red flags. The bearish technical indicators and insider selling contribute to the skepticism around short-term stock performance. However, the company's proactive hiring may position it well for future growth if it can mitigate its current financial challenges.
Based on the combination of fundamental, technical, and alternative data analyses, it would be prudent to adopt a cautious stance on OneStream. The stock is recommended as a hold until there are signs of financial stabilization and more positive market signals.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
