GitLab Inc. Fundamental Analysis
GitLab Inc. (GTLB) shows moderate financial fundamentals with a PE ratio of -205.04, profit margin of -2.49%, and ROE of -2.66%. The company generates $1.0B in annual revenue with strong year-over-year growth of 30.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GTLB's fundamental strength across five key dimensions:
Efficiency Score
WeakGTLB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGTLB trades at attractive valuation levels.
Growth Score
ExcellentGTLB delivers strong and consistent growth momentum.
Financial Health Score
ExcellentGTLB maintains a strong and stable balance sheet.
Profitability Score
WeakGTLB struggles to sustain strong margins.
Key Financial Metrics
Is GTLB Expensive or Cheap?
P/E Ratio
GTLB trades at -205.04 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GTLB's PEG of -1.95 indicates potential undervaluation.
Price to Book
The market values GitLab Inc. at 5.21 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -177.51 times EBITDA. This is generally considered low.
How Well Does GTLB Make Money?
Net Profit Margin
For every $100 in sales, GitLab Inc. keeps $-2.49 as profit after all expenses.
Operating Margin
Core operations generate -5.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.66 in profit for every $100 of shareholder equity.
ROA
GitLab Inc. generates $-1.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GitLab Inc. generates strong operating cash flow of $274.05M, reflecting robust business health.
Free Cash Flow
GitLab Inc. generates strong free cash flow of $261.82M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.55 in free cash annually.
FCF Yield
GTLB converts 5.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-205.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.95
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.03
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
-0.05
vs 25 benchmark
How GTLB Stacks Against Its Sector Peers
| Metric | GTLB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -205.04 | 37.08 | Better (Cheaper) |
| ROE | -2.66% | 950.00% | Weak |
| Net Margin | -2.49% | 5908780585.00% | Weak |
| Debt/Equity | 0.00 | 0.43 | Strong (Low Leverage) |
| Current Ratio | 2.55 | 4.96 | Strong Liquidity |
| ROA | -1.47% | -295559.00% (disorted) | Weak |
GTLB outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GitLab Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
671.23%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
96.01%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
12.27%
Industry Style: Growth, Innovation, High Beta
High Growth