Monday.com (MNDY) AI Stock Analysis

• Market Cap: $8.15B
• Dividend Yield: N/A
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 130.9
• Beta (1Y): 2.30
• Revenue Growth: 28.62%
• EPS Growth: 186.67%
• Country: US
• Employees: 2,508
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.16
• Shares Outstanding: 50,773,340
• 10 Day Avg. Volume: 2,008,997
• 30 Day Avg. Volume: 1,220,633
• PEG Ratio: -0.20
• Price to Book (P/B): 11.41
• Price to Sales (P/S): 12.09
• P/FCF Ratio: 39.45
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 7.46
• Enterprise Value/Gross Profit: 8.36
• Enterprise Value/Ebitda: 251.72
• 1Y Price Target: $243.30
• Price Target Upside: 51.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 4.24
• Revenue Forecast (FY): $1.23B

• Rating: 66 Neutral
• Price Target: $180.00 ▲(12.12% Upside)

Monday.com's strong financial performance and positive earnings call sentiment are offset by technical indicators suggesting a bearish trend and a high valuation. The company's robust revenue growth and strategic focus on high-value clients are promising, but operational challenges and market conditions present risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective execution of strategic initiatives, supporting long-term business expansion.

AI Product Adoption

The successful adoption of AI products enhances the platform's value proposition, driving customer engagement and supporting sustainable growth.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Operational Efficiency Challenges

Low profitability metrics indicate challenges in operational efficiency, which could hinder the company's ability to maximize shareholder value.

Longer Sales Cycles

Longer sales cycles can delay revenue realization and impact cash flow, posing a risk to short-term financial performance and growth momentum.

Volatility in Acquisition Channels

Volatile acquisition channels may affect customer growth and revenue stability, challenging the company's ability to maintain consistent market expansion.

Monday.com Business Overview & Revenue Model

Company Description

monday.com Ltd., together with its subsidiaries, develops software applications in the United States, Europe, the Middle East, Africa, and internationally. It provides Work OS, a cloud-based visual work operating system that consists of modular building blocks used and assembled to create software applications and work management tools. The company also offers product solutions for marketing, CRM, project management, software development, and other fields; and business development, presale, and customer success services. It serves organizations, educational or government institution, and distinct business unit of an organization. The company was formerly known as DaPulse Labs Ltd. and changed its name to monday.com Ltd. in November 2017. monday.com Ltd. was incorporated in 2012 and is headquartered in Tel Aviv-Yafo, Israel.

How the Company Makes Money

Monday.com generates revenue primarily through a subscription-based model, offering tiered pricing plans that cater to different business sizes and needs. The company provides several subscription options, including Basic, Standard, Pro, and Enterprise plans, with increasing levels of features and capabilities. Key revenue streams include monthly and annual subscriptions from its growing customer base, which spans various industries. Additionally, Monday.com benefits from partnerships with third-party integrations and APIs, enhancing its platform's functionality and appeal. The company continuously invests in marketing and expansion strategies to capture a larger share of the project management software market, contributing to its overall earnings.

Monday.com Financial Statement Overview

Summary

Monday.com demonstrates strong revenue growth and a robust balance sheet with low leverage. However, profitability metrics such as net profit margin and EBIT margin indicate some operational challenges. The company is generating positive cash flow and maintaining financial stability, with room for improvement in operational efficiency.

Income Statement

Monday.com has shown strong revenue growth over the years, with a TTM revenue growth rate of 5.99%. The gross profit margin remains high at approximately 89.42%, indicating efficient cost management. However, the net profit margin is relatively low at 3.63%, and the EBIT margin is negative, suggesting challenges in operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.11, indicating low leverage. The return on equity is modest at 3.72%, reflecting moderate profitability. The equity ratio is strong, suggesting a solid financial foundation.

Cash Flow

The cash flow statement shows a positive trend with a free cash flow growth rate of 5.81% in the TTM. The operating cash flow to net income ratio is 0.51, indicating good cash generation relative to net income. However, the free cash flow to net income ratio is slightly below 1, suggesting room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.17B	972.00M	729.70M	519.03M	308.15M	161.12M
Gross Profit	1.04B	868.30M	649.05M	452.50M	269.14M	138.63M
EBITDA	34.55M	58.00M	12.79M	-120.10M	-123.93M	-147.11M
Net Income	65.06M	32.37M	-1.88M	-136.87M	-129.29M	-152.20M
Balance Sheet
Total Assets	2.06B	1.69B	1.28B	1.04B	933.19M	157.42M
Cash, Cash Equivalents and Short-Term Investments	1.74B	1.46B	1.12B	885.89M	886.81M	139.81M
Total Debt	119.27M	106.04M	61.15M	77.72M	84.00K	21.10M
Total Liabilities	791.33M	655.28M	462.15M	359.30M	229.80M	374.98M
Stockholders Equity	1.27B	1.03B	813.51M	679.74M	703.39M	-217.56M
Cash Flow
Free Cash Flow	330.45M	295.83M	204.94M	8.14M	2.60M	-42.66M
Operating Cash Flow	350.66M	311.06M	215.40M	27.14M	16.36M	-37.17M
Investing Cash Flow	-185.79M	-70.81M	-10.46M	-19.00M	-3.63M	-11.48M
Financing Cash Flow	25.21M	55.21M	25.29M	-9.05M	742.27M	8.47M

Monday.com Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 160.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNDY, the sentiment is Negative. The current price of 160.54 is below the 20-day moving average (MA) of 184.93, below the 50-day MA of 189.83, and below the 200-day MA of 246.74, indicating a bearish trend. The MACD of -9.37 indicates Positive momentum. The RSI at 28.83 is Positive, neither overbought nor oversold. The STOCH value of 12.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MNDY.

Monday.com Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NICE	78 Outperform	$8.11B	15.02	15.23%	―	9.46%	34.09%
PEGA	76 Outperform	$9.65B	38.52	51.96%	0.16%	17.00%	120.21%
MNDY	66 Neutral	$8.15B	130.94	5.81%	―	28.62%	186.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GTLB	60 Neutral	$7.39B	―	-0.63%	―	28.97%	98.96%
ASAN	52 Neutral	$3.05B	―	-80.55%	―	9.74%	22.36%
KC	44 Neutral	$3.43B	-10.83	-31.02%	―	20.42%	-9.39%

Monday.com Corporate Events

Monday.com Reports Strong Q3 2025 Results with 26% Revenue Growth

On November 10, 2025, Monday.com announced its third-quarter results for fiscal year 2025, reporting a 26% year-over-year revenue increase to $316.9 million. The company highlighted its strategic focus on moving upmarket and expanding its product suite, which has led to a significant increase in demand from larger customers. The launch of new products, including Monday campaigns, has contributed to more than 10% of the total annual recurring revenue. The company also reported its highest ever non-GAAP operating profit, emphasizing its commitment to efficient and profitable growth. The number of paid customers with significant annual recurring revenue has increased substantially, indicating strong market positioning and customer retention.

Monday.com Announces $870 Million Share Repurchase Amid Investor Day Insights

On September 17, 2025, Monday.com Ltd. hosted its 2025 Investor Day in New York City, where the executive team outlined their vision for the future of work with AI, product strategy, and financial targets. Additionally, on September 15, 2025, the company’s Board of Directors approved a share repurchase program worth up to $870 million, demonstrating a strategic move to enhance shareholder value and potentially strengthen its market position.

Monday.com Updates Financial Statements with Corrected Revenue Figures

On August 11, 2025, Monday.com Ltd. issued a correction to its unaudited financial statements for the first half of 2025, specifically updating revenue figures attributed to geographic areas. The correction involved adjusting the revenue figures for the United States and the rest of the world for the six months ending June 30, 2024. This update is significant for stakeholders as it ensures accurate financial reporting and may influence investor perceptions and decisions.