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TEAM Atlassian Corporation - Fundamental Analysis

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TEAM Stock | Fundamental Analysis & Investment Insights
NASDAQ Technology Software - Application
Current Price Live
$118.55
Analyst Target
$237.08
+100.0% Upside
52W High
$326.0
52W Low
$118.08

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AI Analysis

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Confidence Score
65%
Analysis Accuracy
The Advanced Deterministic Scorecard reveals a weak financial health profile with a Piotroski F-Score of 4/9, indicating borderline stability, and the absence of an Altman Z-Score limits distress risk assessment. Despite negative profitability metrics including a -3.38% profit margin and -15.35% ROE, the company demonstrates strong revenue growth of 20.60% and robust gross margins of 83.45%. Analysts maintain a 'buy' recommendation with a substantial upside implied by a $237.08 target price versus the current $118.55, though insider selling and deteriorating price performance over the past year raise caution. The stock trades at a premium valuation with a Price/Book of 22.64 and Forward P/E of 21.04, justified partially by growth but constrained by weak returns on capital.

Key Strengths

High revenue growth (20.60% YoY) outpacing sector average of 19.00%
Exceptional gross margin of 83.45%, reflecting strong pricing power and low cost of sales
Strong quarterly earnings surprise history: 3 out of last 4 beats, average +14.54%
Forward P/E of 21.04 is reasonable relative to hyper-growth peers despite negative earnings
Analyst consensus remains 'buy' with a high target price implying ~100% upside

Key Risks

Piotroski F-Score of 4 indicates weak financial health and low resilience to downturns
Negative profitability: -3.38% profit margin and -15.35% ROE signal ongoing losses on equity
Insiders have sold $20.67M in shares over the last 6 months with zero buys, signaling lack of confidence
Price performance has been severely negative: -53.4% over 1 year and -47.7% over 5 years
High valuation multiples (P/B 22.64, P/S 5.72) not supported by current earnings or cash flow
AI Fair Value Estimate
Based on comprehensive analysis
$175.5
+48.0% above current price

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