I just bought this stock (Procore Technologies)

Published first at https://www.3minutebreakdowns.com Procore Technologies stock analysis. Ticker: $PCOR Procore Technologies provides software for the construction industry and the stock is up 18% year to date. At the current price, the company has a market cap of 12.2 billion dollars. With just under 700 million of cash and no debt, the enterprise value is 11.5 billion. Revenue over the last 12 months comes to 950 million which means the stock is valued at 12 times revenue. That’s an expensive multiple when you consider free cash flow is only 47 million and net income is negative 190 million. And the key risk to Procore is that a high valuation leaves it exposed for when a downturn hits. Cyclical industries like construction usually demand a discount because economic cycles can make it difficult to make long-term investments. However, Procore has said that its customers stay on the platform even during economic weakness. Notably, Procore grew revenue 38% in 2020 even as the pandemic shuttered construction around the world and it grew revenues 32% last year even as interest rates soared above 5%. More broadly, Procore still sees a massive opportunity for growth. Construction is a 10 trillion dollar industry but many contractors still haven’t embraced the digital age. The Procore CEO said recently that half of new customers are still relying on pen and paper and Microsoft Office. Procore’s software enables contractors to better navigate the complexities of construction and the company was ranked one of the best places to work on Glassdoor. More importantly, the company has huge opportunities to expand its market with the recent launch of Procore Pay. Procore Pay is a platform that simplifies payments across the industry which should drive additional revenue and further entrench users within the broader Procore system. #pcorstock #investing #stocks #stockstobuy #3mb