Instructure Holdings, Inc.

INST

Services-Prepackaged Software

Mkt Cap

$3.238B

PE

-74.70

Debt

$1.18B

Cash

$89.26M

EV

$4.328B

FCF

$145.9M

Market Cap

$3.238B

P/E Ratio

-74.70

Debt

$1.18B

Cash

$89.26M

EV

$4.328B

FCF

$145.9M

Charts data: {"Earnings":[{"time":"2019-12-30","value":-80819000},{"time":"2021-12-30","value":-88679000},{"time":"2022-12-30","value":-34242000},{"time":"2023-12-30","value":-34078000}],"Sales":[{"time":"2019-12-30","value":258473000},{"time":"2021-12-30","value":405361000},{"time":"2022-12-30","value":475194000},{"time":"2023-12-30","value":530210000}],"Net Margins":[{"time":"2019-12-30","value":-0.3126786937126895},{"time":"2021-12-30","value":-0.21876549544726798},{"time":"2022-12-30","value":-0.07205899064382126},{"time":"2023-12-30","value":-0.06427264668716169}],"Assets":[{"time":"2021-12-30","value":2133782000},{"time":"2022-12-30","value":2153489000},{"time":"2023-12-30","value":2157978000}],"Stockholders Equity":[{"time":"2019-12-30","value":145557000},{"time":"2021-12-30","value":1274385000},{"time":"2022-12-30","value":1276127000},{"time":"2023-12-30","value":1285492000}],"ROE":[{"time":"2019-12-30","value":-0.5552395281573541},{"time":"2021-12-30","value":-0.06958572174029042},{"time":"2022-12-30","value":-0.02683275253951997},{"time":"2023-12-30","value":-0.026509694342710808}],"ROA":[{"time":"2021-12-30","value":-0.022002247652290627},{"time":"2022-12-30","value":-0.00765269755266918},{"time":"2023-12-30","value":-0.0014912107537704278}]}

Instructure Holdings, Inc. provides cloud-based learning, assessment, development, and engagement systems worldwide. It offers Canvas Learning Management System (LMS), for content creation, management, and delivery of face-to-face, blended, and online instruction; Canvas Studio, an online video platform, hosts, manages, edits, and delivers video learning experiences; Canvas Catalog, a course catalog and registration system for creating and maintaining a branded marketplace for online course offerings; Canvas Network, an invitation-only offering, to host and deliver large-scale online courses; Canvas Credentials, a digital badging solution, to provide learners with portable verification of skills in stackable pathways; and Canvas Student Pathways, a solution to guide students through customized learning paths culminating in digital certifications. The company also provides Mastery Assessment, a solution for assessment management and content that include Mastery Connect, a student Assessment Management System, and Mastery View Assessments and Mastery Item Banks, provides various assessment content solutions and analytics; and Impact, helps institutions to drive adoption of new technology tools and evaluate impact on student engagement and outcomes. In addition, it provides Elevate Data Sync, a solutions for synchronization of data, grades, and rosters between edtech applications and student information systems; Elevate K-12 Analytics, a data and analytics solution that delivers interactive visualizations and dashboards; Elevate Data Quality, a data-quality solution that ensures district data is accurate, complete, and up-to-date; Elevate Standards Alignment, to align standards-based educational content, improve discoverability, and reach new education markets; and LearnPlatform Tools offered to evaluate, select, and manage the ongoing usage and effectiveness of digital learning products. The company was founded in 2008 and is headquartered in Salt Lake City, Utah.

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

DCF

Discounted Cash Flow Valuation of Instructure Holdings, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$145.9M	$189.7M	$241.3M	$300.3M	$365.3M	$434.3M	$504.3M	$571.5M	$631.9M	$681M	$715.1M	$7.151B
DCF		$164.9M	$182.4M	$197.4M	$208.9M	$215.9M	$218M	$214.9M	$206.6M	$193.6M	$176.8M	$1.768B
Value	$3.747B

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 increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2019	12-2021	12-2022	12-2023	TTM
Net Margin	-31%	-22%	-7.2%	-6.4%	-7.8%
ROA	-	-2.2%	-0.77%	-0.15%	-0.12%
ROE	-56%	-7%	-2.7%	-2.7%	-3.4%

What is the average Net Margin?

The average Net Margin over the past 5 years is -6.82%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.78%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is -0.46%.

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

The trend of ROA over the past 5 years is +0.62%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -2.67%.

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

The trend of ROE over the past 5 years is +0.03%.

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.

The company has high debt with respect to the cashflow it generates.

Data are missing

Years	12-2019	12-2021	12-2022	12-2023	TTM
Debt FCF	-	4.98	3.73	3.13	8.09
Debt Equity	-	0.39	0.39	0.39	0.92
MIN
Graham Stability	-	-	-	-	-

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 8.09.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.60.

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	12-2022	Trend
Revenue	27%	12%	-23%
Net Income	-	-	-
Stockholders Equity	110%	0.73%	-390%
FCF	160%	18%	-530%

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 -22.63%.

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 -387.39%.

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 -526.3%.