Simply Wall St spotlights cloud platform provider Crexendo as undervalued

Simply Wall St sees the stock of Crexendo, a provider of cloud platforms and services for businesses, as undervalued, believing it should be trading 50% higher.

Details

Simply Wall St analysts put the fair value of Crexendo at $6.28 per share, 53% higher than the closing price on Thursday, August 1. The Simply Wall St estimate is slightly above the average target price among six analysts who cover the stock, who put it at $6.19 per share, notes MarketWatch.

Simply Wall St thus believes Crexendo is undervalued, indicating a potential opportunity to buy low. However, it points out that there might be another chance to pick it up in the future: the stock is volatile, and if the market is bearish, it will likely fall.

What Crexendo does

Crexendo is a provider of cloud platforms and services for businesses with a market capitalization of $109.5 million. Its products include a cloud-based business phone system, video conferencing and customer communications solutions, and a cloud call center.

In the first quarter of 2024, the company posted revenue of $14.3 million, up 14% year-over-year. “Our revenue growth remains robust, driven by 25% growth in the software solutions segment, as well as a double-digit increase in telecom service revenue,” said CEO and Chairman Jeff Korn Crexendo.

Net income under GAAP in the first quarter of 2024 came to $0.02 per common share, marking the third consecutive quarter of GAAP profitability, Crexendo noted.

“Crexendo’s earnings over the next few years are expected to double, indicating a very optimistic future ahead,” says Simply Wall St. This, according to its analysts, should lead to stronger cash flows and thus a higher share value.