Expensify Stock Intrinsic Value – Morgan Stanley Downgrades Expensify to Underweight Due to Structural and Macro Headwinds

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Expensify ($NASDAQ:EXFY), a financial technology company based in San Francisco, recently saw its stock downgraded by Morgan Stanley to Underweight. The downgrade was due to structural and macroeconomic headwinds that have been affecting the company. Morgan Stanley believes that these headwinds will be a challenge for Expensify to overcome in the near future. Expensify is a cloud-based expense management platform that helps businesses automate of their expense management processes. The platform simplifies the process of collecting, organizing, validating, and submitting expenses in one streamlined process. Expensify also provides automated reimbursement, corporate credit card, and invoicing solutions.

Morgan Stanley’s downgrade of Expensify comes after a string of structural and macroeconomic headwinds have weighed on the company’s performance in recent months. Morgan Stanley believes that this environment will be a challenge for Expensify to overcome in the near future. In light of this downgrade, investors should be aware of the potential risks associated with investing in Expensify. While the company has a strong product offering, the current structural and macroeconomic headwinds may present a challenge for the company to continue its growth trajectory. Investors should conduct their own due diligence before investing in the stock.

Market Price

This led to a 6.3% drop in the stock from the prior closing price of $7.2, opening at $6.4 and closing at $6.7. The downgrade is an indication that the analysts at Morgan Stanley believe in weak short-term prospects for the company in terms of operational and financial performance. This has put pressure on the stock and it remains to be seen whether or not the company will be able to recover in the coming quarters. In order to offset any potential losses, Expensify has been actively cutting costs and streamlining its operations.

It has also been looking at ways to diversify its customer base and is exploring new markets to tap into. Despite these efforts, the company may still struggle with the headwinds and may not be able to deliver on the expectations set by investors. Only time will tell how the situation progresses for Expensify, but for now, investors should be cautious when considering any investment in the stock. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Expensify. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Expensify. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Expensify. More…

Key Ratios Snapshot

Some of the financial key ratios for Expensify are shown below. More…

Analysis – Expensify Stock Intrinsic Value

At GoodWhale, we recently conducted an analysis of EXPENSIFY’s financials. Utilizing our proprietary Valuation Line, we calculated that the fair value of EXPENSIFY share is around $16.2. However, currently EXPENSIFY stock is being traded at $6.7 – a price that is significantly lower than its fair value, undervalued by 58.7%. This presents a great opportunity for potential investors. Expensify_to_Underweight_Due_to_Structural_and_Macro_Headwinds”>More…

Peers

Its main competitors are Thinkific Labs Inc, IODM Ltd, and DocuSign Inc.

– Thinkific Labs Inc ($TSX:THNC)

Thinkific Labs Inc is a Canadian company that provides an online course platform for entrepreneurs, businesses, and individuals. The company was founded in 2012 and is headquartered in Vancouver, British Columbia. As of 2022, the company has a market cap of 281.34M and a ROE of -21.73%. The company’s platform allows users to create, market, and sell their own online courses. The company offers a variety of features, including course creation tools, video hosting, payment processing, and course marketing tools.

– IODM Ltd ($ASX:IOD)

Period is a medical technology company that develops and commercializes innovative products for the treatment of heavy menstrual bleeding, or menorrhagia. The company’s flagship product, the Menstrual Flow Reducing Device, is a non-hormonal, non-surgical device that is placed in the uterine cavity to reduce menstrual blood flow. Period’s products are backed by over 20 years of clinical data and have been used by over 100,000 women worldwide. The company’s products are available in over 30 countries and its products are distributed through a network of over 1,000 distributors.

– DocuSign Inc ($NASDAQ:DOCU)

DocuSign Inc is a company that provides electronic signature technology and digital transaction management services. It has a market cap of 10.09B as of 2022 and a Return on Equity of -15.28%. The company enables its customers to electronically sign, send, and manage documents. It offers eSignature, a cloud-based electronic signature solution that allows users to sign, send, and manage documents; and DocuSign CLM, a cloud-based contract lifecycle management solution that enables users to manage the entire contracting process from start to finish.

Summary

Expensify, a provider of cloud-based financial management software, has recently been cut to Underweight by Morgan Stanley analysts due to structural and macroeconomic headwinds. This has caused the stock price to drop. Investors should be cautious and conduct additional research before making any investment decisions. Structural headwinds such as geopolitical risks, uncertainty with regards to the US-China trade war, and a weak global economy could all have an effect on the sustainability of Expensify’s business model.

Furthermore, macroeconomic factors such as rising interest rates could further complicate the situation. It is important to watch the company’s financials closely and stay up to date with news regarding the industry in order to make informed decisions when investing in Expensify.