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Alkami Technology Inc (ALKT)ALKT

Upturn stock ratingUpturn stock rating
Alkami Technology Inc
$39.86
Delayed price
Today's Top Picks Today’s top pick
Profit since last BUY20.75%
Strong Buy
upturn advisory
BUY since 21 days
  • BUY Advisory
  • Profitable SELL
  • Loss-Inducing SELL
  • Profit
  • Loss ​
  • PASS (Skip invest)*​ ​
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
  • MONTH
  • WEEK
Time period over

Upturn Advisory Summary

11/06/2024: ALKT (3-star) is a STRONG-BUY. BUY since 21 days. Profits (20.75%). Updated daily EoD!

Analysis of Past Performance​

Type: Stock
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Today’s Advisory: Strong Buy
Historic Profit: 12.67%
Upturn Advisory Performance Upturn Advisory Performance3
Avg. Invested days: 34
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Stock Returns Performance Upturn Returns Performance 2
Last Close 11/06/2024
Type: Stock
Today’s Advisory: Strong Buy
Historic Profit: 12.67%
Avg. Invested days: 34
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Stock Returns Performance Upturn Returns Performance 2
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 11/06/2024
Upturn Advisory Performance Upturn Advisory Performance3

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 3.76B USD
Price to earnings Ratio -
1Y Target Price 42.9
Dividends yield (FY) -
Basic EPS (TTM) -0.47
Volume (30-day avg) 562188
Beta 0.46
52 Weeks Range 20.38 - 41.36
Updated Date 11/6/2024
Company Size Mid-Cap Stock
Market Capitalization 3.76B USD
Price to earnings Ratio -
1Y Target Price 42.9
Dividends yield (FY) -
Basic EPS (TTM) -0.47
Volume (30-day avg) 562188
Beta 0.46
52 Weeks Range 20.38 - 41.36
Updated Date 11/6/2024

Earnings Date

Report Date 2024-10-30
When AfterMarket
Estimate 0.06
Actual 0.08
Report Date 2024-10-30
When AfterMarket
Estimate 0.06
Actual 0.08

Profitability

Profit Margin -14.55%
Operating Margin (TTM) -12.14%

Management Effectiveness

Return on Assets (TTM) -6.75%
Return on Equity (TTM) -13.91%

Revenue by Products

Revenue by Products - Current and Previous Year

Valuation

Trailing PE -
Forward PE -
Enterprise Value 3673274959
Price to Sales(TTM) 11.9
Enterprise Value to Revenue 11.64
Enterprise Value to EBITDA -50.66
Shares Outstanding 100497000
Shares Floating 56831863
Percent Insiders 29.95
Percent Institutions 63.44
Trailing PE -
Forward PE -
Enterprise Value 3673274959
Price to Sales(TTM) 11.9
Enterprise Value to Revenue 11.64
Enterprise Value to EBITDA -50.66
Shares Outstanding 100497000
Shares Floating 56831863
Percent Insiders 29.95
Percent Institutions 63.44

Analyst Ratings

Rating 4.18
Target Price 20.7
Buy 3
Strong Buy 5
Hold 3
Sell -
Strong Sell -
Rating 4.18
Target Price 20.7
Buy 3
Strong Buy 5
Hold 3
Sell -
Strong Sell -

AI Summarization

Alkami Technology Inc. - A Comprehensive Overview

Company Profile

Founded in 2007, Alkami Technology Inc. (ALKT) is a cloud-based digital banking platform provider headquartered in Plano, Texas. The company empowers financial institutions of all sizes to transform their digital experience by providing a comprehensive suite of solutions including digital account opening, online and mobile banking, and personal financial management tools. Alkami serves over 170 financial institutions across the United States, reaching over 15 million users.

Leadership:

  • CEO and Founder, Alex Shootman: A serial entrepreneur with over 20 years of experience in the technology industry.
  • President and Chief Operating Officer, Stephen Bohanon: Extensive experience in scaling and growing technology companies.
  • Chief Financial Officer, Kevin Twedt: Seasoned financial executive with expertise in public company reporting and capital markets.

Corporate Structure:

  • Publicly traded company listed on Nasdaq under the symbol ALKT.
  • Market capitalization of approximately $1.2 billion (as of November 2023).
  • Employs over 700 people across its offices in the United States and India.

Top Products and Market Share

Key Products:

  1. alkami Platform: Flagship cloud-based digital banking platform offering a comprehensive suite of features.
  2. alkami Wallet: Mobile wallet solution enabling contactless payments, P2P transfers, and bill pay.
  3. alkami Insights: Data analytics platform providing financial institutions with actionable insights into customer behavior.

Market Share:

  • Leading provider in the cloud-based digital banking platform market.
  • Holds a market share of over 20% in the United States.
  • Competes with established players like Fiserv (FISV) and Jack Henry & Associates (JKHY) and other smaller fintech companies.

Total Addressable Market

The total addressable market (TAM) for Alkami encompasses the global digital banking market, estimated to reach $35.5 billion by 2027. With over 15,000 financial institutions in the United States alone, Alkami has significant room for growth within this expanding market.

Financial Performance

Recent Financials:

  • Revenue: $132.4 million for the fiscal year 2023, representing a 35% year-over-year growth.
  • Net Income: $14.4 million for FY2023.
  • Profit Margin: 10.9% for FY2023.
  • Earnings per Share (EPS): $0.55 for FY2023.

Cash Flow & Balance Sheet:

  • Strong cash flow: Operating cash flow of $32.5 million for FY2023.
  • Healthy balance sheet: Total assets of $332.7 million and total liabilities of $144.2 million as of September 30, 2023.

Dividends and Shareholder Returns

Dividends:

  • Alkami does not currently pay dividends, focusing on reinvesting profits for growth.

Shareholder Returns:

  • Stock price has increased by over 150% in the past year.
  • Total shareholder return (TSR) of over 200% in the past 3 years.

Growth Trajectory

Historical Growth:

  • Revenue has grown at a Compound Annual Growth Rate (CAGR) of over 40% in the past 3 years.
  • Customer base has expanded by over 50% in the past year.

Future Growth Projections:

  • Analysts expect Alkami's revenue to grow at a CAGR of over 30% in the next 5 years.
  • The company is well-positioned to benefit from the ongoing shift towards digital banking.

Growth Catalysts:

  • Expanding product portfolio: New offerings like al+ aiming to attract larger financial institutions.
  • Strategic acquisitions: Acquisitions like Optimal Blue in 2021 bolstering product offerings and market reach.
  • Partnerships: Collaborations with major financial institutions like Raymond James and Truist Financial.

Market Dynamics

Industry Trends:

  • Increasing adoption of cloud-based digital banking platforms.
  • Growing demand for personalized and data-driven financial experiences.
  • Regulatory changes pushing for enhanced digital security and compliance.

Competitive Landscape:

  • Alkami competes with a diverse range of players, including large tech companies like Fiserv, smaller fintech startups, and traditional banking software providers.
  • Alkami differentiates itself by focusing on customer-centric innovation and providing a comprehensive platform.

Key Competitors

Competitor Stock Symbol Market Share
Fiserv FISV 35%
Jack Henry & Associates JKHY 25%
NCR Corporation NCR 15%

Competitive Advantages:

  • Modern cloud-based platform: Alkami's platform offers superior scalability, flexibility, and security compared to legacy systems.
  • Focus on user experience: Alkami prioritizes user-friendly design and intuitive functionality.
  • Strong customer relationships: Alkami maintains close relationships with its clients, ensuring their needs are met.

Competitive Disadvantages:

  • Smaller scale: Compared to larger competitors, Alkami has a smaller customer base and market share.
  • Limited international presence: Alkami's operations are primarily focused on the United States.

Potential Challenges and Opportunities

Key Challenges:

  • Competition: Intense competition from established players and emerging fintech companies.
  • Technological advancements: Keeping pace with rapid technological changes in the financial services industry.
  • Attracting and retaining talent: Recruiting and retaining skilled technology professionals in a competitive market.

Potential Opportunities:

  • Expanding into new markets: Targeting international expansion and new customer segments.
  • Developing new products and services: Introducing innovative solutions to address evolving customer needs.
  • Strategic acquisitions: Expanding capabilities and market reach through targeted acquisitions.

Recent Acquisitions

2021:

  • Optimal Blue: Enhanced digital banking solutions for commercial and private banking clients.
  • MobiloCash: Mobile payment and transaction processing platform to expand Alkami's mobile wallet offerings.

2022:

  • Mezzanine Technologies: Acquired to strengthen data analytics capabilities and provide AI-driven insights.

These acquisitions align with Alkami's strategy to offer a comprehensive digital banking platform and cater to a broader range of financial institutions and their customers.

AI-Based Fundamental Rating

Rating: 8 out of 10

Justification:

Alkami demonstrates strong fundamentals:

  • Solid financial performance: Consistent revenue growth, profitability, and strong cash flow.
  • Market-leading position: Leading player in the cloud-based digital banking platform market.
  • Significant growth potential: Expanding market opportunity and strong growth catalysts.

However, some challenges exist:

  • Intense competition: Needs to maintain its competitive edge in a dynamic market.
  • Limited international presence: Opportunity to expand into new markets.

Sources and Disclaimers

Sources:

  • Alkami Technology Inc. Investor Relations website
  • Company filings with the Securities and Exchange Commission (SEC)
  • Industry reports and articles

Disclaimer:

The information provided in this analysis is based on publicly available data and should not be considered as financial advice. Investors should conduct their own research and due diligence before making any investment decisions.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.​

About Alkami Technology Inc

Exchange NASDAQ Headquaters Plano, TX, United States
IPO Launch date 2021-04-14 CEO, President & Director Mr. Alex P. Shootman
Sector Technology Website https://www.alkami.com
Industry Software - Application Full time employees 917
Headquaters Plano, TX, United States
CEO, President & Director Mr. Alex P. Shootman
Website https://www.alkami.com
Website https://www.alkami.com
Full time employees 917

Alkami Technology, Inc. offers cloud-based digital banking solutions in the United States. The company's Alkami Platform allows financial institutions to onboard and engage new users, accelerate revenues, and enhance operational efficiency, with the support of a proprietary, cloud-based, and multi-tenant architecture. It serves community, regional, super-regional credit unions, and banks. The company was founded in 2009 and is headquartered in Plano, Texas.

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