Domo Inc (DOMO) Stock Analysis
Verdict: BUY
Acquisition by Progress Software at $400M offers a floor, but deep liquidity distress makes this a binary merger-arbitrage play.
Investment score: 65/100
Analysis as of
Is Domo Inc stock worth reviewing? The TradeMates thesis
The TradeMates model views Domo as an 'asset-lite' shell in transition. While the acquisition price of $400M is high relative to the current market cap, the balance sheet is underwater with -186M in equity. The stock is a 'Hold' for those already positioned, as the upside is capped by the deal terms and the downside is protected by the acquisition floor, assuming the deal closes.
7-factor investment score
- Valuation: 70/100 (weight 20%)
- Financial Health: 20/100 (weight 15%)
- Technical Momentum: 75/100 (weight 15%)
- Earnings Quality: 85/100 (weight 15%)
- Insider Sentiment: 10/100 (weight 10%)
- Analyst Consensus: 50/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Domo Inc opportunities and risks
What speaks for DOMO
- Acquisition Premium Realization
What speaks against DOMO
- Common Shareholder Wipeout
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| DOMO | n/a | 0.5x | n/a | 74.9% | -17.4% | 0.2% |
| SCFR | 11054.6x | 0.0x | n/a | 0.0% | 0.0% | -0.0% |
| KLTR | n/a | 1.2x | n/a | 71.1% | -8.2% | 7.2% |
| SLNH | n/a | 6.3x | n/a | 14.5% | -190.9% | -23.8% |
| TONX | n/a | 11.6x | n/a | 71.0% | -1416.6% | -12.6% |
| EGAN | 4.5x | 1.9x | 6.6x | 73.3% | 41.7% | 7.9% |
| Peer median | n/a | 1.9x | n/a | 71.0% | -8.2% | -0.0% |
Frequently asked questions about Domo Inc (DOMO)
Is DOMO stock a good investment?
The TradeMates model rates Domo Inc as BUY with an investment score of 65/100. The TradeMates model views Domo as an 'asset-lite' shell in transition. While the acquisition price of $400M is high relative to the current market cap, the balance sheet is underwater with -186M in equity. The stock is a 'Hold' for those already positioned, as the upside is capped by the deal terms and the downside is protected by the acquisition floor, assuming the deal closes. This is algorithmic model output, not personal investment advice.
Is DOMO stock a buy?
The TradeMates model verdict for DOMO is BUY with an investment score of 65/100. Treat this as a model signal to review, not a personal buy recommendation.