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Sergey

@sergeycyw.bsky.social

65 followers 21 following 14K posts

I talk about growth stock investing and fundamental analysis with a long-term mindset. I provide earnings reviews and key news updates. Not investment advice. SergeyCYW.substack.com

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Sergey @sergeycyw.bsky.social · 1h

The chart includes the most popular stocks: $CRWD $PLTR $NET $RBRK $SHOP $ZS $SNOW $NOW $AXON $PANW $DUOL $MSFT $AMZN $GOOGL $APP $ORCL.

Sergey @sergeycyw.bsky.social · 1h

On the chart, companies with a Rule 40 score <30% are marked in red, those <40% in yellow, and those >40% in green.

*-Selection criteria: software companies with the majority of their revenue subscription-based, EV over $1 billion, and a gross margin above 40%.

Sergey @sergeycyw.bsky.social · 1h

In this case, I used the GAAP EBITDA Margin TTM combined with revenue growth estimates for the next year.

The Rule of 40 allows for the comparison of companies at different stages and scales.

Sergey @sergeycyw.bsky.social · 1h

A company that meets or exceeds the 40% threshold is generally considered to be performing well, making it potentially more attractive to investors looking for balanced growth and profitability.

Sergey @sergeycyw.bsky.social · 1h

#Stocks The Rule of 40 is a pivotal financial metric used to evaluate the performance of SaaS and other growth-oriented software companies. It serves as a benchmark that balances revenue growth and profitability, providing a comprehensive snapshot of a company's overall financial health.

Sergey @sergeycyw.bsky.social · 3h

The PSG ratio is instrumental in determining whether a high P/S ratio is justified based on the company’s actual growth trajectory.

The chart includes the most popular stocks: $CRWD $PLTR $NET $RBRK $SHOP $ZS $SNOW $NOW $AXON $PANW $FIG $DUOL $MSFT $AMZN $GOOGL $APP $ORCL.

Sergey @sergeycyw.bsky.social · 3h

This metric is particularly relevant in the software industry, where companies often command high P/S ratios driven by expectations of rapid growth from scalable operations.

Sergey @sergeycyw.bsky.social · 3h

#Stocks The Price/Sales/Growth (PSG) metric is a valuable valuation tool used to evaluate software companies, offering a detailed perspective that goes beyond traditional price-to-sales (P/S) ratios by incorporating the growth aspect of the business.

Sergey @sergeycyw.bsky.social · 1d

P.S. To make the data on the chart easier to read, I removed $PLTR, which is trading at 122.8 EV/GP.

Sergey @sergeycyw.bsky.social · 1d

*-Selection criteria: software companies with the majority of their revenue subscription-based, EV over $1 billion, and a gross margin above 40%.

The chart includes the most popular stocks: $CRWD $PLTR $NET $RBRK $SHOP $ZS $SNOW $NOW $AXON $PANW $FIG $DUOL $MSFT $AMZN $GOOGL $APP $ORCL.

Sergey @sergeycyw.bsky.social · 1d

In this case, I used the GAAP Operating Margin from the most recent quarter. It helps identify the latest trends and highlights companies that have recently achieved operating profitability. However, for companies affected by seasonality, the data may be distorted.

Sergey @sergeycyw.bsky.social · 1d

On the chart, companies with a negative operating margin are marked in red, those with an operating margin below 5% in yellow, and those with an operating margin above 5% in green.

Sergey @sergeycyw.bsky.social · 1d

I also include data on Operating Margin in the chart, as it impacts company valuation. Companies with a high positive operating margin should be valued higher than those with a negative operating margin.

Sergey @sergeycyw.bsky.social · 1d

This multiple considers product efficiency—gross profit margin. Gross profit margin is a critical metric for software companies. Consistently high or improving margins are often viewed as indicators of a company's strong competitive position and market potential.

Sergey @sergeycyw.bsky.social · 1d

#Stocks Let's examine SaaS companies* valuations by analyzing the EV/Gross Profit (GAAP) multiple relative to their projected revenue growth for the next year.

Sergey @sergeycyw.bsky.social · 1d

P.S. To make the data on the chart easier to read, I removed $PLTR, which is trading at 99.2 EV/Sales.

Sergey @sergeycyw.bsky.social · 1d

*-Selection criteria: software companies with the majority of their revenue subscription-based, EV over $1 billion, and a gross margin above 70%.

The chart includes the most popular stocks: $CRWD $PLTR $NET $RBRK $ZS $SNOW $MDB $NOW $AXON $PANW $DUOL $APP $FIG $ADBE $CRM.

Sergey @sergeycyw.bsky.social · 1d

In this case, I used the GAAP Operating Margin from the most recent quarter. It helps identify the latest trends and highlights companies that have recently achieved operating profitability. However, for companies affected by seasonality, the data may be distorted.

Sergey @sergeycyw.bsky.social · 1d

On the chart, companies with a negative operating margin are marked in red, those with an operating margin below 5% in yellow, and those with an operating margin above 5% in green.

Sergey @sergeycyw.bsky.social · 1d

I also include data on Operating Margin in the chart, as it impacts company valuation. Companies with a high positive operating margin should be valued higher than those with a negative operating margin.

Sergey @sergeycyw.bsky.social · 1d

Additionally, understanding forward growth helps investors make informed decisions by comparing a company’s projections with its industry peers and market expectations, providing a clearer view of its growth trajectory.

Sergey @sergeycyw.bsky.social · 1d

Evaluating growth stocks using forward projected revenue growth is crucial for investors because it provides insight into the company's future potential rather than just its current performance.

Sergey @sergeycyw.bsky.social · 1d

#Stocks SaaS companies* are typically evaluated based on the EV/Sales multiple relative to their projected revenue growth for the next year.

Sergey @sergeycyw.bsky.social · 2d

How $IOT Samsara Makes Money:

↗️$391.5M rev (+30.4% YoY, +6.7% QoQ)
↗️GM* (78.1%, +1.2 PPs YoY)
↗️Operating Margin* (15.2%, +9.4 PPs YoY)
↗️FCF Margin (11.3%, +6.9 PPs YoY)
↗️Net Margin (-4.3%, +7.8 PPs YoY)
↗️EPS* $0.12 🟢

*non-GAAP

Sergey @sergeycyw.bsky.social · 2d

The company will host a live walk-through and Q&A on Nov 5, 2025, showcasing how it intends to bridge AI innovation and enterprise-grade governance.