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BEARISH
$12.69 Live
C3.ai, Inc. · NYSE
Target $14.67 (+15.6%)
$12.27 52W Range $35.98

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AI Analysis

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Confidence
85%
The Advanced Deterministic Scorecard shows a Piotroski F-Score of 6/9, indicating stable financial health, but the absence of an Altman Z-Score and negative profitability metrics raise concerns. Despite strong gross margins and a solid balance sheet with low debt, the company is deeply unprofitable with negative earnings, shrinking revenue, and deteriorating ROE and ROA. Insider selling is aggressive, with $37.91M in sales over the last six months and no buys, while analysts show limited conviction with only a $14.67 target price. The stock trades at elevated valuation multiples despite negative earnings and declining growth, and its 5-year return of -91.4% underscores persistent underperformance.

Key Strengths

High gross margin of 51.76% indicates pricing power or low cost of revenue
Strong liquidity position with current ratio of 6.47 and quick ratio of 6.20
Low debt/equity ratio of 0.08 suggests minimal leverage risk
Piotroski F-Score of 6 indicates stable financial health relative to distressed peers
Recent earnings surprises have trended positive, showing improving cost control or guidance management

Key Risks

Profit margin of -108.05% and operating margin of -149.19% indicate severe unprofitability
Revenue growth YoY is -20.30%, showing contraction in core business
Forward P/E of -13.32 reflects negative earnings expectations
Aggressive insider selling: $37.91M in sales, zero buys in last 6 months
Lack of Altman Z-Score prevents clear distress risk assessment, but negative ROE and earnings growth of -316.7% are red flags

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