Docebo Inc. Common Shares (DCBO)

FairStock Score: 84/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $7 million in annual free cash flow (1.5% yield on market cap)
• High return on equity of 56.9% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.03, providing financial flexibility
• Healthy net profit margin of 11.1% showing consistent profitability
• FairStock composite score of 84/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Trades significantly above Graham Number ($9) with negative 106% margin of safety—limited downside protection
• Altman Z-Score of 1.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Docebo Inc. Common Shares is a micro-cap technology company valued at $457 million. The business generates $243 million in annual revenue with a 11.1% net margin and $7 million in free cash flow. From a quality standpoint, Docebo shows distressed Altman Z-Score of 1.4 warrants caution and extraordinary 57% return on equity. On valuation, the stock is attractively valued at 13.8x earnings, with trades far above its Graham Number ($9) with no margin of safety. Growth dynamics show revenue growing at 10.5% and profit growth of 125.5%. Our composite FairStock Score of 84/100 reflects strong fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Docebo's consistent 57% ROE at just 14x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $7 million in annual free cash flow (1.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the technology space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer