C3.ai, Inc.

C3.ai, Inc.

AIยทNYSE

$10.71

-8.9%
TechnologyInformation Technology Services

C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It provides C3 AI application platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina to for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 AI Data Vision that visualizes, understands, and leverages the relationships between data entities. It also offers C3 AI applications, including C3 AI Inventory Optimization, a solution to optimize raw material, in-process, and finished goods inventory levels; C3 AI Supply Network Risk, which provides visibility into risks of disruption throughout the supply chain operations; C3 AI Customer Churn Management, which enables account executives and relationship managers to monitor customer satisfaction, as well as to prevent customer churn with AI-based and human-interpretable predictions and warning; C3 AI Production Schedule Optimization, a solution for scheduling production; C3 AI Predictive Maintenance, which provides insight into asset risk to maintenance planners and equipment operators; C3 AI Fraud Detection solution that identify revenue leakage or maintenance and safety issues; and C3 AI Energy Management solution. In addition, it offers integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market segments. It has strategic partnerships with Baker Hughes in the areas of oil and gas market; FIS in the areas of financial services market; Raytheon; and AWS, Intel, Google, and Microsoft. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019. C3.ai, Inc. was incorporated in 2009 and is headquartered in Redwood City, California.

At a Glance

Live Snapshot
Market Cap$1.52B
EPS-2.2400
P/E Ratio-4.78
Earnings Date06/03/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -4.8).

Valuation inputs: P/E -4.8, earnings yield N/A, momentum -8.9%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE -34.4%, ROIC -36.1%).

Profitability stack: net margin -74.2%, ROE -34.4%, ROIC -36.1%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile is elevated and scenario stress-testing is essential.

Risk factors: liabilities/assets +18.3%, momentum -8.9%, net margin -74.2%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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C3.ai, Inc. Market vs Earnings Trajectory

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C3.ai, Inc.

C3.ai, Inc. Fair Value Envelope

AI ยท NYSE

Our analysis suggests that AI has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $10.71, this represents a potential HIDDEN relative to our calculated worth for C3.ai, Inc..

Intrinsic Value
Current Price: $10.71
3Y+22.0%
5Y+207.0%
10Y+398.0%
3Y+54.0%
5Y+148.0%
10Y+325.0%
3Y+50.0%
5Y+316.0%
10Y+766.0%
3Y-52.0%
5Y-32.0%
10Y+19.0%
3Y-51.0%
5Y-31.0%
10Y+7.0%
3Y-12.0%
5Y+236.0%
10Y+284.0%
C3.ai, Inc.

C3.ai, Inc. Profit Bridge

AI ยท NYSE
Revenue389.06M
Cost of Goods Sold (153.19M)
Gross Profit235.86M
Operating Expenses (560.29M)
Operating Income-324.42M
Interest Expense (0.00)
Other Income/Expense36.70M
Pretax Income-287.73M
Income Tax (976.00K)
Net Income-288.70M
Net Income
-288.70M

Profitability Analysis

Gross Margin

60.6%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

-83.4%

Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.

Net Profit Margin

-74.2%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

60.62%
Gross Profit Margin
5%
3Y-19.0%
5Y-19.0%
10Y-9.0%
-83.39%
Operating Profit Margin
-19%
3Y+7.0%
5Y+83.0%
10Y+112.0%
-74.21%
Net Profit Margin
-18%
3Y-2.0%
5Y+68.0%
10Y+104.0%
-34.44%
Return on Equity
8%
3Y+77.0%
5Y-191.0%
10Y-271.0%
-28.14%
Return on Assets
4%
3Y+72.0%
5Y+24.0%
10Y+126.0%
-36.10%
Return on Invested Capital
6%
3Y+89.0%
5Y+13.0%
10Y+64.0%
AI

C3.ai, Inc. Cash Conversion Engine

AI ยท NYSE
Net Income-288.70M
Depreciation & Amortization12.61M
Stock-Based Compensation230.99M
Change in Working Capital14.00M
Others-10.30M
Capital Expenditures-3.04M
Free Cash Flow-44.45M

Cash Flow Quality Analysis

FCF Conversion Rate

15.4%

Weak cash conversion. Significant portion of earnings not converting to cashโ€”review working capital trends and capital intensity.

CapEx Intensity

-7.3%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+50.8%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$14.00M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

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C3.ai, Inc. Funding & Solvency Profile

AI ยท NYSE
Cash & Cash Equivalents88.85M
Net Receivables123.57M
Inventory0.00
Other Current Assets37.20M
Total Current Assets783 M
Property, Plant & Equipment70.80M
Goodwill & Intangible Assets625.00K
Long-Term Investments0.00
Other Non-Current Assets41.66M
Total Non-Current Assets112 M
Total Assets
895.78M

Financial Health Analysis

Current Ratio

6.58x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.25x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

664 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

87% Current

Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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C3.ai, Inc. Street Expectations Map

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Wall Street analysts project that AI stock may decline over the coming 12 months. The consensus 1-year price target stands at 7.50, with estimates ranging from a low of 6.00 to a high of 10.00.

Lowest Target
6.00
-43.98%
Consensus Target
7.50
-29.97%
Highest Target
10.00
-6.63%

The consensus 1-year price target stands at 7.50, with estimates ranging from a low of 6.00 to a high of 10.00.

Analyst Consensus Analysis

Upside Potential

-30.0%

Significant downside risk. Stock trading well above analyst consensus suggests elevated valuation concerns and potential correction.

Analyst Agreement

53.3% spread

Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.

Risk-Reward Profile

0.15x

Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.

Analyst Conviction

Low

Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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C3.ai, Inc. Insider Positioning

AI ยท NYSE

During the last 12 months, insiders have purchased $302K and sold $58.02M worth of AI shares, resulting in $57.72M of net selling activity.

3 Months

Bought

35.0K

302.30K

Sold

1.6M

13.74M

Net Activity

-13.4M

-$13.44M

3-6 Months

Bought

0

0.00

Sold

1.6M

20.68M

Net Activity

-20.7M

-$20.68M

6-9 Months

Bought

0

0.00

Sold

1.4M

23.60M

Net Activity

-23.6M

-$23.60M

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

1
SJH

Snabe Jim H.

Director

35.0K sharesโ€ข2 transactions

$302K

Top Sellers

1
STM

Siebel Thomas M

Director, 10 Percent Owner, Officer: Ceo And Chairman Of The Board

4.0M sharesโ€ข19 transactions

$49.90M

2
SRD

Schilling Robert David

Officer: Evp & Chief Commercial Officer

240.1K sharesโ€ข1 transactions

$4.15M

3
ESB

Ehikian Stephen Bradley

Officer: Chief Executive Officer

287.1K sharesโ€ข2 transactions

$3.61M

4
LH

Lath Hitesh

Officer: Chief Financial Officer

30.3K sharesโ€ข2 transactions

$353K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $57.72M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.01:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$13.44M

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

4 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

0.00%
Dividend Yield
3Y-
5Y-
10Y-100.0%
ย 

ai Dividend History

AI
10Y CAGR 14%
Latest $0.225
Annual $1.05
Stable dividend payments
Last Period: +0%