Monday.com (MNDY) AI Stock Analysis

• Market Cap: $5.32B
• Dividend Yield: N/A
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 85.5
• Beta (1Y): 2.13
• 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: 1,494,865
• 30 Day Avg. Volume: 1,224,419
• PEG Ratio: -0.20
• Price to Book (P/B): 11.41
• Price to Sales (P/S): 12.09
• P/FCF Ratio: 39.72
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 3.43
• Enterprise Value/Gross Profit: 3.84
• Enterprise Value/Ebitda: 46.68
• 1Y Price Target: $216.80
• Price Target Upside: 106.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $108.00 ▲(3.05% Upside)

The score is anchored by solid financial quality (high gross margins, low leverage, positive cash generation) and a positive earnings outlook with strong growth and profitability guidance. This is tempered by very weak technicals (price below all major moving averages with bearish momentum) and a high P/E valuation that leaves less room for execution missteps.

Positive Factors

High Gross Margins

Sustained ~90% gross margins indicate highly scalable SaaS economics and strong unit economics. High gross margin supports investment in product and AI, funds go-to-market expansion without eroding core profitability, and underpins durable cash generation as ARR grows.

Recurring Revenue Growth & Customer Expansion

Healthy recurring revenue growth, 111% net dollar retention and rising multi-product adoption signal deepening account penetration and predictable revenue streams. Upmarket traction and increased ARRs from new products raise long-term revenue visibility and per-customer lifetime value.

Healthy Balance Sheet & Cash Generation

Low leverage and improving free cash flow provide financial flexibility to invest, pursue product development and AI initiatives, or weather cycles. Strong cash generation supports durable reinvestment and reduces financing risk for sustained growth and margin expansion.

Negative Factors

Low Net Profitability / Negative EBIT

Despite high gross margins, low net margins and negative EBIT show operating efficiency gaps. Continued investment in upmarket sales and product expansion could keep operating leverage modest, constraining durable profitability improvements absent sustained cost discipline.

Acquisition Channel Volatility

Dependence on paid acquisition channels that are currently volatile reduces predictability of new customer flow. Over 2–6 months, inconsistent lead generation can hinder steady ARR additions and force higher marketing spend, pressuring margins and growth cadence.

Longer Sales Cycles Upmarket & Modest ROE

Moving upmarket increases deal size but lengthens sales cycles, delaying revenue recognition and making growth timing lumpy. Combined with modest ROE, this suggests capital and sales resources may take longer to convert into efficient returns, stressing near-term capital productivity.

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

Strong fundamentals supported by high gross margin (~89%–90%), solid revenue growth signals, and a healthy balance sheet with low leverage (debt-to-equity 0.11). Offsetting this, profitability is still thin (net margin ~3.6%) and operational efficiency remains a key improvement area (negative EBIT margin referenced), though cash generation is positive with improving free cash flow.

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	85.57M	58.00M	12.79M	-120.10M	-123.25M	-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: 104.80
• 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 104.8 is below the 20-day moving average (MA) of 128.16, below the 50-day MA of 141.05, and below the 200-day MA of 213.11, indicating a bearish trend. The MACD of -10.23 indicates Positive momentum. The RSI at 22.63 is Positive, neither overbought nor oversold. The STOCH value of 10.72 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	71 Outperform	$6.69B	12.67	15.24%	―	9.46%	34.09%
GTLB	68 Neutral	$5.48B	-125.35	-5.17%	―	27.35%	18.18%
PEGA	67 Neutral	$6.66B	27.02	51.96%	0.16%	17.00%	120.21%
MNDY	63 Neutral	$5.32B	85.47	5.81%	―	28.62%	186.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KC	60 Neutral	$3.83B	-23.16	-15.88%	―	24.26%	55.58%
ASAN	51 Neutral	$2.16B	-9.76	-102.48%	―	9.47%	16.97%

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.

The most recent analyst rating on (MNDY) stock is a Buy with a $275.00 price target. To see the full list of analyst forecasts on Monday.com stock, see the MNDY Stock Forecast page.