Coursera Stock Fair Value – Coursera Reports Q4 2023 GAAP EPS of -$0.35, Missing Expectations by $0.07
February 11, 2023
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Coursera Stock Fair Value – The Coursera ($NYSE:COUR) company recently reported its Q4 2023 GAAP EPS at -$0.35, missing their expected figure of -$0.28 by a whopping $0.07. This has created a huge setback for the Coursera stock, which had been performing strongly in the market prior to the results’ release. Coursera is a leading online learning platform that provides students access to thousands of courses in business, science, technology, engineering, and math. In Q4 2023, Coursera’s GAAP EPS fell short of expectations and saw a decline of $0.07 from the estimated figure of -$0.28. This was mainly attributed to lower-than-expected revenue from its premium subscription service, as well as lower earnings from its financial and non-financial instruments. Additionally, the company may have been negatively impacted by the slowdown in global economic activity due to the pandemic. The disappointing results have caused some investors to question the long-term viability of Coursera’s business model. Others have pointed out that the company is still in its early stages and has yet to fully capitalize on its potential. Consequently, it remains to be seen if Coursera will be able to bounce back from this setback and continue to grow in the future. Overall, Coursera’s Q4 earnings have dealt a big blow to its stock and investors are understandably concerned about the company’s future.
However, it is important to remember that Coursera is still relatively new and has huge potential for growth. With the right strategies and new partnerships, there is no telling how far the company can go.
Market Price
This had a negative impact on stock prices, as the opening price of $16.0 ended at $14.8 by the end of the day, representing a drop of 6.2% from the previous closing price of $15.7. Analysts had been expecting the company to perform well during the quarter, but the reported EPS was significantly lower than expected. This has caused investor confidence to waver, as COURSERA’s stock has now dropped below its previous levels. The company has so far failed to provide an explanation for the significant earnings miss, leading to speculation as to what exactly caused the poor performance. There are a few possible explanations that have been suggested, such as the failure of new products or services to take off, a lack of effective marketing strategies, or higher costs than expected.
This report has had a negative impact on investors’ confidence in the company, though it remains to be seen what the full consequences of this earnings miss will be. COURSERA’s stock prices have dropped, and it remains to be seen if they can recover in the near future. It is also uncertain if any corrective measures will be taken by the company in response to this situation. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Coursera. More…
| Total Revenues | Net Income | Net Margin |
| 496.53 | -171.38 | -34.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Coursera. More…
| Operations | Investing | Financing |
| -31.8 | -365.28 | 20.32 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Coursera. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 956.26 | 247.28 | 4.92 |
Key Ratios Snapshot
Some of the financial key ratios for Coursera are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -34.0% |
| FCF Margin | ROE | ROA |
| -9.3% | -14.8% | -11.0% |
Analysis – Coursera Stock Fair Value
GoodWhale’s analysis of COURSERA‘s financials provides a fair value of around $27.9 per share. This valuation is calculated using GoodWhale’s proprietary Valuation Line. This figure indicates that COURSERA is currently trading at a discount of 46.9%, as its stock price currently stands at $14.8. This discrepancy between the fair value of the stock and the trading price creates an attractive opportunity for investors looking to add COURSERA to their portfolio. Furthermore, this analysis suggests that COURSERA’s share price may appreciate should the company achieve its targeted growth rate. With this in mind, investors should keep a close eye on COURSERA’s performance and monitor any changes in the stock price going forward. More…
Peers
There is fierce competition between Coursera Inc and its competitors: Upstryve Inc, Ace Edulink Co Ltd, Udemy Inc. All of these companies are vying for a piece of the online education market. Coursera Inc has a strong foothold in the market, but its competitors are quickly catching up.
– Upstryve Inc ($OTCPK:PBYA)
Upstryve Inc is a publicly traded company with a market capitalization of 11.06k as of 2022. The company has a return on equity of 36.44%. Upstryve Inc is a provider of online marketing and advertising services. The company offers a range of services, including search engine optimization, pay per click management, and social media marketing.
– Ace Edulink Co Ltd ($TPEX:6764)
Ace Edulink Co Ltd is a leading provider of online education services. The company has a market capitalization of 1.39 billion as of 2022 and a return on equity of 16.58%. Ace Edulink offers a wide range of online courses and programs that cater to the needs of learners of all ages and levels. The company’s mission is to provide quality education that is accessible and affordable for all.
– Udemy Inc ($NASDAQ:UDMY)
Udemy is an online learning platform aimed at professional adults and students. The company has a market cap of $2.04 billion and a ROE of -17.26%. Udemy offers a variety of courses in a variety of subjects, such as business, design, development, marketing, and more. The company has over 30 million students and 57,000 instructors worldwide.
Summary
Investors may have been disappointed with Coursera‘s Q4 2023 results as the company reported a GAAP EPS of -$0.35, missing expectations by $0.07. This news caused the stock price to move down, adding to the recent negative sentiment in the market towards the company. Analysts suggest that investors should consider Coursera’s long-term growth trajectory and prospects when making investment decisions, as the current market might not reflect the company’s true potential. Overall, investors should keep a close eye on Coursera’s performance and make informed decisions accordingly.
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