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Alkami Technology Inc (ALKT)ALKT
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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 | Today’s Advisory: Strong Buy |
Historic Profit: 12.67% | Upturn Advisory Performance 3 | Avg. Invested days: 34 |
Profits based on simulation | Stock 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 | Stock Returns Performance 2 |
Profits based on simulation Last Close 11/06/2024 | Upturn Advisory Performance 3 |
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:
- alkami Platform: Flagship cloud-based digital banking platform offering a comprehensive suite of features.
- alkami Wallet: Mobile wallet solution enabling contactless payments, P2P transfers, and bill pay.
- 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.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
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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