C3.ai: 50% Net Cash, 7x Sales, Artificial Intelligence Growth Story

Aug. 21, 2022 5:46 AM ETC3.ai, Inc. (AI) StockAI39 Comments

Summary

  • C3.ai is down 90% from all time highs.
  • The company has guided for 30% growth or greater over the long term.
  • The company has nearly $1 billion of net cash on its balance sheet, making up 50% of the current market cap.
  • With the stock trading at just 7x sales even before accounting for the net cash, the stock is very cheap.
  • Looking for a portfolio of ideas like this one? Members of Best Of Breed get exclusive access to our model portfolio. Learn More »

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C3.ai (NYSE:AI) continues to languish at low valuations amidst the ongoing tech crash. AI once traded deep in the triple-digits but now trades in the low double-digits. This is a secular growth story positioned to benefit from

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This article was written by

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Julian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways.

Julian is the leader of the investing group Best Of Breed Growth Stocks where he only shares positions in stocks which have a large probability of delivering large alpha relative to the S&P 500. He also combines growth-oriented principles with strict valuation hurdles to add an additional layer to the conventional margin of safety. Features include: exclusive access to Julian's highest conviction picks, full stock research reports, real-time trade alerts, macro market analysis, individual industry reports, a filtered watchlist, and community chat with access to Julian 24/7. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AI, PLTR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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