Confluent, Inc.

CFLT

Services-Prepackaged Software

Mkt Cap

$6.109B

PE

-13.44

Debt

$1.1B

Cash

$317M

EV

$6.892B

FCF

-$145.7M

Market Cap

$6.109B

P/E Ratio

-13.44

Debt

$1.1B

Cash

$317M

EV

$6.892B

FCF

-$145.7M

Confluent, Inc. operates a data streaming platform in the United States and internationally. The company offers Confluent Cloud, a managed cloud-native service for connecting and processing real-time data; and Confluent Platform, an enterprise-grade self-managed software that connects and processes data. It also provides Kafka Connect, an open-source component that works as a centralized data hub for simple data integration between databases, key-value stores, search indexes, and file systems; ksqlDB, a database for stream processing applications; and stream governance, a solution that is designed for the intricacies of streaming data, which allows teams to expand usage of Apache Kafka without bypassing requirements for risk management and regulatory compliance. In addition, the company offers training and professional services. It serves automotive, communication, financial services, gaming, government, insurance, manufacturing, retail and ecommerce, and technology industries. The company was formerly known as Infinitem, Inc. and changed its name to Confluent, Inc. in September 2014. Confluent, Inc. was incorporated in 2014 and is headquartered in Mountain View, California.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -

Earnings Stability -

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2019	12-2020	12-2021	12-2022	TTM
Net Margin	-63%	-97%	-88%	-77%	-62%
ROA	-	-44%	-14%	-19%	-19%
ROE	73%	75%	-40%	-59%	-58%

What is the average Net Margin?

The average Net Margin over the past 5 years is -82.81%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +11.15%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is -16.76%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -4.53%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -49.56%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -18.5%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

Data are missing

Years	12-2019	12-2020	12-2021	12-2022	TTM
Debt FCF	-	-	-10.12	-6.81	-7.55
Debt Equity	-	0.00	1.29	1.43	1.39
MIN
Graham Stability	-	-	-	-	-

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -7.55.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 3.31.

What is the Graham’s Stability?

Graham’s Stability measure stands at -.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Data are missing

Years	12-2019	12-2021	Trend
Revenue	58%	51%	-3.4%
Net Income	-	-	-
Stockholders Equity	-	-9.5%	-
FCF	-	-	-

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -3.43%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -.