monday.com Ltd. revolutionizes collaboration by transforming the way teams organize their workflows and manage projects. Through its innovative Work OS platform, this software powerhouse empowers businesses across various sectors to streamline operations and enhance productivity. Renowned for its cutting-edge features and user-friendly interface, monday.com continues to set benchmarks in the application software industry. As we delve into an investment analysis, we must consider whether its impressive growth trajectory and market position justify its current valuation.
Table of contents
Company Description
monday.com Ltd. is an innovative leader in the Software – Application industry, specializing in cloud-based work management solutions. Founded in 2012 and headquartered in Tel Aviv-Yafo, Israel, the company has established a strong presence across the United States, Europe, the Middle East, and Africa. Its flagship product, Work OS, provides organizations with customizable tools for project management, marketing, and CRM, allowing users to streamline workflows through modular software applications. With a workforce of approximately 2,508 employees, monday.com effectively caters to diverse sectors, including education and government. By continuously enhancing its product offerings, the company plays a pivotal role in reshaping how teams collaborate and manage their work.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of monday.com Ltd., focusing on its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table outlines the income statement for monday.com Ltd. (MNDY) over the past five fiscal years, providing a clear view of the company’s financial performance.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 161M | 308M | 519M | 730M | 972M |
| Cost of Revenue | 22M | 39M | 66M | 81M | 104M |
| Operating Expenses | 289M | 395M | 605M | 688M | 889M |
| Gross Profit | 139M | 269M | 453M | 649M | 868M |
| EBITDA | -147M | -126M | -120M | 12.8M | 58M |
| EBIT | -149M | -127M | -129M | 3.77M | 39.8M |
| Interest Expense | 1M | 1M | 0.8M | 0.4M | 0M |
| Net Income | -152M | -137M | -137M | -1.88M | 32.4M |
| EPS | -3.92 | -3.09 | -2.99 | -0.0388 | 0.65 |
| Filing Date | 2020-12-31 | 2021-12-31 | 2022-12-31 | 2023-12-31 | 2024-12-31 |
Interpretation of Income Statement
Over the past five years, monday.com has demonstrated a robust revenue growth trajectory, with a notable increase from 161M in 2020 to 972M in 2024. Net income has transitioned from substantial losses to a positive figure of 32.4M in 2024, indicating a significant turnaround. The gross profit margin has improved, showcasing better cost management and operational efficiency. The most recent year reflects improved margins and a strategic focus on scaling operations, although operating expenses still require close monitoring to ensure sustainability in profit growth. This positive trend suggests that investors could see increasing value in MNDY as it continues to stabilize its financial performance.
Financial Ratios
The following table summarizes the financial ratios for monday.com Ltd. (ticker: MNDY) over the years.
| Metrics | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | -94.46% | -41.96% | -26.37% | -0.26% | 3.33% |
| ROE | 69.96% | -18.38% | -20.14% | -0.23% | 3.14% |
| ROIC | -401.01% | -18.22% | -21.15% | 2.48% | -1.73% |
| P/E | -45.59 | -106.27 | -40.83 | -4839.47 | 362.98 |
| P/B | -31.90 | 19.53 | 8.22 | 11.17 | 11.41 |
| Current Ratio | 1.05 | 4.00 | 3.10 | 2.82 | 2.66 |
| Quick Ratio | 1.05 | 4.00 | 3.10 | 2.82 | 2.66 |
| D/E | -0.10 | 0.00 | 0.11 | 0.08 | 0.10 |
| Debt-to-Assets | 13.41% | 0.01% | 7.48% | 4.79% | 6.29% |
| Interest Coverage | -148.90 | -130.03 | 0 | -87.10 | 0 |
| Asset Turnover | 1.02 | 0.33 | 0.50 | 0.57 | 0.58 |
| Fixed Asset Turnover | 22.45 | 15.72 | 4.53 | 7.32 | 7.13 |
| Dividend Yield | 0 | 0 | 0 | 0 | 0 |
Interpretation of Financial Ratios
Analyzing monday.com Ltd.’s financial ratios for FY 2024 reveals some strengths and weaknesses. The current ratio is strong at 2.66, indicating good short-term liquidity. However, the debt-to-equity ratio stands at 0.103, suggesting a low level of leverage, which can be a double-edged sword; it limits financial risk but may also restrict growth potential. The net profit margin stands at 3.33%, which is weak given the gross profit margin of 89.33%, indicating potential inefficiencies in operational management. Additionally, the price-to-earnings (P/E) ratio is extremely high at 362.98, raising concerns about overvaluation. Overall, while liquidity is solid, profitability and valuation metrics warrant caution.
Evolution of Financial Ratios
Over the past five years, monday.com has shown improvement in liquidity ratios, with the current ratio increasing from 1.05 in 2020 to 2.66 in 2024. However, profitability remains a concern, as the net profit margin has been negative in previous years and only recently turned positive, suggesting ongoing challenges in achieving sustainable profits.
Distribution Policy
monday.com Ltd. (MNDY) does not pay dividends, reflecting its focus on growth and reinvestment in the business. The company has been in a high-growth phase, prioritizing research and development and strategic acquisitions over immediate shareholder returns. Despite lacking dividends, MNDY engages in share buybacks, signaling confidence in its long-term value. This approach aligns with sustainable value creation, as it enhances shareholder equity while positioning the company for future profitability.
Sector Analysis
monday.com Ltd. operates in the Software – Application industry, providing a cloud-based Work OS that enhances project management and collaboration. Its competitive edge lies in versatile product offerings tailored for diverse organizational needs.
Strategic Positioning
monday.com Ltd. (MNDY) currently holds a competitive position in the Software – Application industry with a market capitalization of approximately $8.03B. The company offers a versatile Work OS that allows users to create custom applications, which is critical in today’s fast-evolving tech landscape. However, it faces significant competitive pressure from established players and emerging startups. Additionally, the rapid technological disruption in software development heightens the need for continuous innovation and adaptation. With a beta of 1.258, investors should be cautious as the stock may exhibit higher volatility compared to the market.
Key Products
Below is a table highlighting the key products offered by monday.com Ltd., showcasing their functionalities and applications.
| Product | Description |
|---|---|
| Work OS | A cloud-based visual work operating system that allows organizations to manage their workflows using customizable building blocks. |
| Project Management | Tools designed to help teams track progress, allocate resources, and manage timelines for various projects. |
| CRM | Customer Relationship Management solution that assists businesses in managing customer interactions and data throughout the customer lifecycle. |
| Marketing Solutions | A suite of tools aimed at streamlining marketing processes, including campaign management and performance tracking. |
| Software Development | Tools that facilitate collaboration among developers, enabling project tracking, code management, and version control. |
These products cater to a wide range of business needs, making monday.com a versatile platform for organizations aiming to enhance productivity and collaboration.
Main Competitors
The competitive landscape for monday.com Ltd. reveals several notable players in the software application industry, particularly in the cloud-based work management solutions sector.
| Company | Market Cap |
|---|---|
| Procore Technologies, Inc. | 11.62B |
| Dayforce Inc | 11.01B |
| Manhattan Associates, Inc. | 10.83B |
| Pegasystems Inc. | 10.30B |
| ZoomInfo Technologies Inc. | 9.41B |
| Paycom Software, Inc. | 9.29B |
| InterDigital, Inc. | 9.14B |
| AppFolio, Inc. | 8.46B |
| Open Text Corporation | 8.45B |
| Elastic N.V. | 7.87B |
| monday.com Ltd. | 8.03B |
These companies, including monday.com Ltd., operate primarily in the global market, focusing on various aspects of software development and work management solutions. Each competitor brings unique offerings to the table, competing for market share in a rapidly evolving technological landscape.
Competitive Advantages
monday.com Ltd. boasts a strong competitive edge through its innovative Work OS, which allows users to customize software applications tailored to their specific needs. This flexibility appeals to a broad range of industries, enhancing customer retention. With plans to introduce new features and expand into emerging markets, the company is well-positioned to capture additional market share. As organizations increasingly prioritize digital transformation, monday.com stands to benefit from growing demand for adaptable work management solutions, promising a robust future outlook.
SWOT Analysis
The SWOT analysis provides a strategic overview of monday.com Ltd. (MNDY), highlighting its strengths, weaknesses, opportunities, and threats.
Strengths
- Strong market position
- Innovative product offerings
- Established brand recognition
Weaknesses
- Limited diversification
- Dependence on subscription model
- High competition
Opportunities
- Growing demand for work management tools
- Expansion into new markets
- Potential for strategic partnerships
Threats
- Rapid technological changes
- Economic downturns
- Increased competition in software industry
Overall, the SWOT analysis indicates that monday.com Ltd. possesses significant strengths and opportunities that can be leveraged for growth. However, it must address its weaknesses and stay vigilant against external threats to sustain its competitive edge.
Stock Analysis
In this analysis, I will review monday.com Ltd. (MNDY) stock price movements and trading dynamics over the past year, highlighting key price fluctuations and overall trends.
Trend Analysis
Over the past year, MNDY has experienced a price change of -17.71%, indicating a bearish trend. The stock has shown notable volatility with a standard deviation of 42.06, reflecting significant price movements. The highest price reached during this period was 324.31, while the lowest was 143.86. Furthermore, the recent trend from September 21, 2025, to December 7, 2025, reveals an even more pronounced decline of -28.39%, with a trend slope of -5.58, indicating a deceleration in the downward movement.
Volume Analysis
In analyzing trading volumes over the last three months, the total volume has reached approximately 499.74M, with a slight buyer domination at 50.29%. However, in the recent period from September 21, 2025, to December 7, 2025, seller volume at 50.66M outweighed buyer volume of 27.57M, suggesting a seller-dominant market. Despite this, the overall volume trend is increasing, which may indicate growing market participation, albeit with a prevailing bearish sentiment among investors.
Analyst Opinions
Recent analyst recommendations for monday.com Ltd. (MNDY) indicate a cautious approach. The overall rating stands at B-, with a score of 3, reflecting a mix of strengths and weaknesses. Analysts highlight a strong discounted cash flow score of 4, suggesting solid future cash generation potential. However, concerns arise from low scores in price-to-earnings and price-to-book ratios, both rated at 1. As such, the consensus leans towards a “hold” for the current year, indicating that while the company has potential, it may not be the best time to buy.
Stock Grades
The latest stock ratings for monday.com Ltd. (MNDY) indicate a consistent outlook from various reputable grading companies.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | maintain | Overweight | 2025-11-11 |
| Citigroup | maintain | Buy | 2025-11-11 |
| Piper Sandler | maintain | Overweight | 2025-11-11 |
| B of A Securities | maintain | Neutral | 2025-11-11 |
| Morgan Stanley | maintain | Overweight | 2025-11-11 |
| Canaccord Genuity | maintain | Buy | 2025-11-11 |
| Baird | maintain | Outperform | 2025-11-11 |
| Wells Fargo | maintain | Overweight | 2025-11-11 |
| DA Davidson | maintain | Buy | 2025-11-11 |
| Jefferies | maintain | Buy | 2025-11-11 |
Overall, the trend shows that most analysts maintain positive ratings, with several companies rating MNDY as “Overweight” or “Buy.” This reflects a stable sentiment in the market towards the company’s potential growth.
Target Prices
The consensus target price for monday.com Ltd. (MNDY) indicates a positive outlook from analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 365 | 202 | 289.4 |
Overall, analysts expect monday.com to reach a consensus target price of approximately 289.4, suggesting a favorable investment opportunity.
Consumer Opinions
Consumer sentiment around monday.com Ltd. has been a mix of enthusiasm and caution, reflecting diverse experiences among users.
| Positive Reviews | Negative Reviews |
|---|---|
| User-friendly interface that boosts productivity. | Customer service response times can be slow. |
| Highly customizable features tailored to team needs. | Pricing can be perceived as high for small teams. |
| Excellent collaborative tools enhancing teamwork. | Occasional bugs and glitches reported. |
Overall, consumer feedback showcases monday.com’s strengths in usability and customization, while also pointing out weaknesses in customer support and pricing concerns.
Risk Analysis
In this section, I will outline the key risks associated with investing in monday.com Ltd. (MNDY) to help you make informed decisions.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in market demand affecting revenue growth. | High | High |
| Competitive Risk | Increased competition from other project management tools. | Medium | High |
| Regulatory Risk | Changes in data protection laws impacting operations. | Medium | Medium |
| Technology Risk | Risks related to software bugs or system outages. | High | Medium |
| Economic Risk | Global economic downturns affecting customer budgets. | Medium | High |
Among these risks, market fluctuations and competitive pressures are particularly noteworthy, as the tech sector continues to evolve rapidly. Investors should remain vigilant about these factors as they could significantly influence monday.com’s performance.
Should You Buy monday.com Ltd.?
monday.com Ltd. has demonstrated a revenue increase to 1.54B in 2025, indicating strong growth potential; however, it has reported negative EBITDA of -452M, suggesting challenges in profitability. The company has a debt of 106M, which is manageable given its total equity of 8.23B, resulting in a debt-to-equity ratio of 0.0128. The fundamentals show an evolution from losses to a more stable revenue base, but with a WACC of 9.57% exceeding its ROIC of -17.35%, this suggests value destruction. The current rating of B- indicates potential but also highlights ongoing risks.
Favorable signals
The company, monday.com Ltd. (MNDY), exhibits several favorable elements in its performance. Notably, it has a remarkable revenue growth of 33.21%, a high gross margin of 89.33%, and strong gross profit growth of 33.78%. Additionally, the company shows a favorable interest expense percentage of 0.0%, alongside significant EBIT growth of 954.84%. Furthermore, it has a current ratio of 2.66, a quick ratio of 2.66, a debt-to-equity ratio of 0.1, and a fixed asset turnover of 7.13, indicating a strong liquidity position and efficient use of assets.
Unfavorable signals
On the other hand, there are several unfavorable elements that could raise concern. The net margin stands at just 3.33%, while the return on equity (ROE) is only 3.14%. More critically, the return on invested capital (ROIC) is -1.73%, which signifies value destruction. Additionally, the price-to-earnings (P/E) ratio is quite high at 362.98, and the price-to-book (P/B) ratio is also elevated at 11.41. Furthermore, the company does not offer any dividend yield, which could be a negative factor for income-focused investors.
Conclusion
In summary, while the income statement evaluation appears favorable, the ratios evaluation presents unfavorable signals, particularly the negative ROIC which indicates value destruction. Given the recent seller volume exceeds the buyer volume, it might be prudent to wait for buyers to return before making any investment considerations.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Monday.com (MNDY) Pushes Upmarket and Boosts Incentives as Analysts Reaffirm Bullish Outlook – Yahoo Finance (Dec 04, 2025)
- monday.com Ltd. (MNDY): A Bull Case Theory – Insider Monkey (Dec 04, 2025)
- monday.com (MNDY) Stock Trades Up, Here Is Why – Finviz (Dec 01, 2025)
- monday.com Ltd. $MNDY is Sands Capital Alternatives LLC’s 7th Largest Position – MarketBeat (Dec 04, 2025)
- monday.com Ltd. Just Recorded A 39% EPS Beat: Here’s What Analysts Are Forecasting Next – simplywall.st (Nov 13, 2025)
For more information about monday.com Ltd., please visit the official website: monday.com
